<h1>Health and Education Cess Not Deductible as Business Expense, Confirms Finance Minister in Union Budget Clarification.</h1> The Health and Education Cess, imposed as an additional surcharge for funding government welfare programs, is not permissible as a business expenditure. This clarification was made by the Union Finance Minister during the presentation of the Union Budget. The Minister emphasized that income tax, including surcharges, cannot be deducted when calculating business income. Despite some court rulings allowing the cess as a business expense, this goes against legislative intent, and any surcharge or cess on income and profits remains non-deductible as business expenditure.