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HR Payroll Issues- Education Cess ERROR display in Form 16

In HR India Payroll for taxation year 2007-08 system is calculating IT properly. But in Form 16 Education Cess is displaying @2% erroneously in stead of 3%. However it is calculating @ 3% perfectly. For Example:

Tax on Total Income 42783.00

Education Cess 856.00 (Should display 1284.00 @ 3% in stead of 856.00)

Tax payable 44067.00 (Total tax amount adding 1284.00 is OK)

Kindly solve this problem so that Education Cess amount is correctly displayed in Form 16.

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    Former Member
    Posted on Aug 22, 2007 at 03:29 AM


    An education cess of 2% of the tax payable is levied. If the taxable income before Section VI A Deductions is greater than Rs. 10 lakh, then a surcharge of 10% of educational cess + tax is also levied in addition to the tax.

    I think there is a split in the tax shown.. for ex. upto higher education it is 1% and from higher education it is 2%....


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    • Hi Manu,

      Thanx for yr qck response. The calculation part for IT and Education Cess is OK. But amount of Education Cess displayed in Form 16 is not correct as we have tried to explain in the live case example. We wll be thankful if u pl suggest action to be taken by us in the system so that edn cess amount is displayed correctly.

      Thnx & rgds