Marginal Relif On Surcharge

Respected Sir/Mam,

please explain to me what the marginal relief is and how it works.
marginal relief applies to the old tax regime?

and also how it works on surcharge calculation.
Replies (5)
Quick Summary
This discussion clarifies the concept of marginal relief, particularly within the old tax regime. It explains how this relief mechanism operates when an individual's income slightly exceeds a tax threshold, leading to a disproportionately high tax and surcharge. The examples provided illustrate how marginal relief can significantly reduce the tax burden in such scenarios, ensuring a smoother transition between tax brackets.

The marginal relief on the surcharge in the old tax regime for individuals ,i.e If your income is excess to nearly 1 lac more than 50 lac  with that calculation the tax payable is coming 1476750/- ( incld. surcharge 10% ). But now the Government gives the relief of RS.64250/- The difference between the calculated tax for 51 Lac minus 50 Lac . 

Thanks sir

Welcome.... ............

Hello, please explain to me if the total net taxable income is 51,98,000 after all deductions including s/d so how to calculate tax . if marginal relief is applicable or not

Hmm, not sure up to what excessive amount one can get the relief of surcharge, but assume that if it is possible,one can get relief so you will have to pay Rs. 1412500 after getting relief..

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