December 17, 2004

The Chief Executive Officer
All Agency Banks (As per list)

Dear Sir,

As you are aware, in order to provide universalized quality based education, the Government has levied ‘Education Cess’ on Income Tax and Corporation Tax in the Union Budget 2004-05. In this regard, we have been advised by the Office of the Principal Chief Controller of Accounts, Central Board of Direct Taxes, New Delhi that the said Cess is calculated at the rate of two percent of such Income and Surcharge.

2. With a view to facilitate the accounting of Education Cess, a new Minor Head "504 – Education Cess" has been accorded provisionally under the following Major Heads:

3. We shall be glad if you will please issue suitable instructions to all your authorised branches immediately, so as to enable them to account for the collection under the appropriate Head of Account.

Yours faithfully,

Sd/-

(M.T.Varghese)
General Manager