Marginal Relief Benefit under New Tax Regime

What is Marginal Relief under New Tax Regime ?🧐
Under the New Tax Regime , if the Assessee income is uptp 7 Lacs , then that person will be allowed Rebate u/s 87A upto ₹ 25,000/- and he need to pay zero taxes on ₹ 7 Lacs income.
However, if the income slightly increases by ₹ 7 lakhs no rebate will be allowed and Assessee might end up paying a higher amount of taxes than the income increase itself.
To tackle such situation , the Govt. has introduced the concept of Marginal Relief under New Tax Regime.
The Marginal relief for income tax rebate is a new amendment to section 87A applicable to the new tax regime .instead of paying the full tax amount , if your income is over ₹ 7,00,000/- you can pay only your excess income itself as your final tax.
Calculation of Relief :-
Mr A is earning a total annual income of ₹ 7,55,000 for FY 2023-24 and he is opting for a new tax regime. His tax liability as per the tax rates available under the new regime will be INR 25,500. Here we can see that by a slight increase of ₹5000 in his income he is liable to pay the tax of ₹25,500.
Hence, in this case, he will be eligible to claim the relief as calculated below:
Marginal relief = Tax liability - Income over INR 7 lakhs
= 25500 - 5000
= 20500
So, now he has to pay taxes ₹ 5000 plus education cess and interest if any.
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[@dikshitphutela4115]

Best

[@IshuBansal-ww4xf]

Explanation in simple words

[@SunitaRani-eo8qn]

Simple explanation

[@SaNjeevKuMar-tj5og]

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[@aksmn4]

Marginal relife kisko milta hai? Kitne amount tak milta kuch bataya he nahi bhai

[@CA_AshwaniArora]

7 lac se above income hti h toh tax liablity aati h pay krne ko toh ek aisa point jha income 7 lac se jyada ho rhi ho aur income toh utni na badhe jitni tax liablity badh rhi ho
Toh us difference ko bolte h marginal relief.. kitni amount toh depend krega ki income kitni badhi aur tax liablity kitni hui
Hope k apko samjh aaya ho
Thanks for watching anyways 😊

[@aksmn4]

@@CA_AshwaniArora agya samjh bhai video mai sahi samjhaya hai but mereko samajh he na aya tha 1st time mai.

[@CA_AshwaniArora]

@@aksmn4 no problem bhai
Thanks for watching anyways
Keep supporting 😊