Tax: How much tax if you earn ten thousand rupees above 12 lakh? Here too, 'marginal relief' provides great relief..

New Income Tax Slab: In Budget 2025, the government made the middle class and salaried people happy by announcing zero income tax up to an income of Rs 12 lakh. But, this announcement has disappointed those people whose annual income is more than 12 lakhs. Especially those people whose income is Rs 12 lakh 10 thousand, in such a situation they will also have to pay tax. Although the tax liability on this annual amount is Rs 61500, they will not have to pay that much tax. The margin relief provision of income tax will give great relief to people earning a little above 12 lakhs. The Economic Policy Editor of CNBC Awaaz has cleared this confusion of taxpayers and also explained how much will be the total tax liability on an income of 12 lakh 10 thousand. Let us tell you…

How much tax on an income of 12 lakh 10 thousand?

Suppose your income is Rs 12,10,000, then your total tax liability will be Rs 61500. But, under the Marginal Relief facility, out of the tax liability on the amount above 12 lahks and the income above 12 lahks, whichever is less will be payable as tax. In such a situation, instead of a tax liability of Rs 61500 on 12 lakh 10 thousand, you will have to pay only Rs 10000 as tax. This is the relief available under Marginal Relief.

Rs 12 lakh 50 thousand, in this the total tax liability is Rs 67500. But, here also you will have to pay tax of only Rs 50000, because here also the tax liability is less than your income above 12 lakh.

However, there will be no benefit of Marginal Relief on annual income of Rs 12 lakh 75 thousand or more. They will have to pay taxes as per the new tax slab. Since the government has also changed the tax slab, they will not have to pay tax at the old rates.

What is the Marginal Relief Provision

To provide relief to taxpayers, the government has made provisions for marginal relief. Under this, relief is given to those taxpayers whose incremental income would have become liable for tax due to a slight increase. However, the benefit of marginal relief is available up to a limited income.

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