Saturday, 25 March 2023

Marginal Relief Proposal in Finance Bill 2023



It has been proposed to provide marginal relief for taxpayers adopting new tax regime and having income exceeding ₹ 7.00 lakhs.

In Simple Words, Marginal relief has now been proposed to be prescribed which would mean that the tax payable shall not exceed the income exceeding ₹ 7 lakh.

For Example

Tax on total income ₹ 7.01 lakh would be ₹26,104
As per this proposal tax on same would be ₹1000.

Similarly Tax on total income ₹ 7.10 Lakh would be ₹ 27,040
Now as per this proposal tax on same income would be ₹10,000.

Further Tax on total income ₹7.20 Lakh would be ₹28,080. As per this proposal tax on same income would be ₹20,000.

The proposal would be beneficial for taxpayers falling within the range of total income of ₹ 7.01 lakh to ₹ 7.29 lakh.

A welcome move by the government for taxpayers whose income is marginally above ₹ 7 Lakhs

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