Income tax calculation: After the budget 2025-26, there is a loud discussion about taxpayers, especially in the salary class, there is a loud discussion. The Finance Minister has freed the income of up to 12.75 lakhs (75,000 standard deductions) for salary class in the budget from tax liability. Now the discussion is that if someone’s income is more than 12.75 lakhs, then how will the calculation of tax be done according to different tax slabs. An important question in this is that if someone’s income is a few thousand more than this threshold limit, then how will they be taxed. Also, how much marginal relief can such taxpayers get.
Sushil Jain, CEO of Tax Expert and PersonalsFO, has explained tax liability to salary taxpayers with annual income annual income on the basis of tax rate of different tax slabs. At the same time, he has compared the tax liability to be made in New Tax Regime with the tax liability of Old Tax Regime.
Understand who is better in Old vs New Tax Regime, through calculations
Accordingly, tax payers earning Rs 15 lakh per annum under New Tax Regime 97,500 Tax of money will have to be paid. While under Old Tax Regime 1,11,800 Tax of rupee will be made. In this context, you will have a new tax regime 14,300 Will save money.
At the same time, the annual earnings of individual taxpayers are a few thousand more than the threshold limit, so how will they be taxed. A provision of marginal relief has been made regarding this. It will be available to people whose income is more than ₹ 12 lakhs. However, it can only up to 50 thousand rupees.
What is Marginal Tax Relief? (What is Marginal Tax Relief)
There is a tax relief provided by the Marginal Tax Relief Income Tax Department. It gets them whose income or earnings are only slightly higher than the tax free limit. This ensures that tax payers with slightly income of Rs 12 lakh do not cost high tax rates. In easy language, taxpayer will have to pay more than 12 lakh income or as per the slab, or whatever is less.