Marginal Relief under the New Tax Regime with Example

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Marginal Relief under the New Tax Regime

Estimate your quarterly liability with our free Advance Tax Calculator and turn your Form 16 into a ready computation with Milaan.

Example:

• Salary: ₹765,000
• Standard Deduction: ₹50,000
• Net Taxable Income: ₹715,000

Tax Calculation under New Tax Regime:

• Tax (excluding cess): ₹26,500

Note:

• If the salary was ₹750,000, the tax would be zero.

Comparative Analysis:

• Increase in Salary: ₹15,000
• Increase in Tax: ₹26,500
• Since the increase in tax is greater than the increase in salary, marginal relief is applicable.

Marginal Relief Calculation:

• Marginal Relief Amount: ₹11,500

Final Tax Liability:

• Tax after Relief: ₹15,000
• Cess: ₹600
• Total Tax Liability: ₹15,600

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