Marginal TAX relief

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Marginal tax relief ensures that a small increase in your taxable income doesn't result in a disproportionately large jump in your tax bill. For the financial year 2023-24, income between Rs. 7,50,001 and Rs. 7,77,778 is taxed at the additional income amount above Rs 7.5 lakh, not the full slab rate. This relief remains unchanged for FY 2024-25.

HIRENKUMAR

HIRENKUMAR (Querist)
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10 December 2024 sir
fy 2023-24
As per the marginal tax relief, the amount of tax one needs to pay on income between Rs. 7,50,001 and Rs. 7,77,778 is the additional income above Rs 7.5 lakh and not the tax liability as per the slabs. This helps in avoiding a situation where a marginal increase in taxable income leads to a much higher increase in tax outgo. So, in the case of Person B, the actual tax liability will be Rs. 10,000 and not Rs. 27,040. We can see the table below for the actual tax liability across other income levels.
how much in fy 2024-25 ?