Marginal Relief under the New Tax Regime
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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