Mon Feb 03 06:07:31 UTC 2025: ## Tax Relief Clarified for Incomes Slightly Above ₹12 Lakh
**Mumbai, February 3, 2025** – The Central Board of Direct Taxes (CBDT) has issued clarification on marginal tax relief under the new tax regime for FY 2025-26, addressing confusion surrounding incomes just above ₹12 lakh. The clarification confirms that marginal relief is available for incomes up to ₹12.70 lakh, but not for incomes of ₹12.75 lakh or higher.
The new tax regime offers a rebate of ₹60,000, effectively making the first ₹12 lakh tax-free. For incomes exceeding this amount, marginal relief reduces the tax burden. The CBDT provided examples to illustrate the calculation. An income of ₹12.1 lakh would have a tax liability of ₹61,500 without marginal relief. However, with the relief, the payable tax is reduced to ₹10,000. This is calculated by subtracting the amount exceeding ₹12 lakh (₹10,000 in this case) from the total tax liability before relief.
The clarification aims to provide clarity for taxpayers and ensure the correct application of marginal tax relief for incomes in this range. Further details on the new tax regime can be obtained from the CBDT website.
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