Highlights

  • Marginal relief offered for those with income slightly over Rs 7 lakh
  • FM Nirmala Sitharaman proposed the amendment in Finance Bill 2023
  • Marginal relief: Tax liability cannot be greater than the income that exceeds the threshold

Latest news

Quixplained: why Vistara has been forced to introduce interim uniform

Quixplained: why Vistara has been forced to introduce interim uniform

IND vs AUS WTC Final 2023: India's fight continues as Australia end Day 3 at 123/4

IND vs AUS WTC Final 2023: India's fight continues as Australia end Day 3 at 123/4

Somebody put 2 giant inflatable ducks in Hong Kong harbour. Find out who

Somebody put 2 giant inflatable ducks in Hong Kong harbour. Find out who

The India Story| India's worst train disaster in decades

The India Story| India's worst train disaster in decades

EXO comeback confirmed by SM Entertainment; here's when their album will release

EXO comeback confirmed by SM Entertainment; here's when their album will release

Finance Bill: Marginal relief for income slightly over Rs 7 lakh

The finance bill amendment introduces extension of marginal relief for those whose income will be slightly above Rs 7 lakh from the next financial year

In the Finance Bill 2023, an amendment offering marginal relief for those with income slightly more than Rs 7 lakh was introduced. This will be applicable from next financial year.

Marginal relief is the difference between the excess tax payable and the amount exceeding the threshold. This implies that the tax liability cannot be more than the income that exceeds Rs 7 lakh.

In the Budget 2023, an increase in the tax rebate was proposed. With the increase in the rebate, an individual won’t have to pay any tax if the taxable income does not exceed Rs 7 lakh from FY24. The rebate is distinct from the basic exemption limit, which was also raised to Rs 3 lakh from Rs 2.5 lakh. Tax payer can claim rebate until the income is upto Rs 7 lakh.

However, a small increase in the income over Rs 7 lakh would make the entire amount above the basic exemption limit of Rs 3 lakh becomes taxable. This drastically increased the tax liability that has to be paid.

Now, with the introduction of marginal relief, the tax to be paid can not be more than the income that exceeds Rs 7 lakh. Marginal relief has existed since the implementation of surcharge. Income tax surcharge is an extra charge levied on the taxable amount paid when income exceeds a certain threshold

Up Next

Finance Bill: Marginal relief for income slightly over Rs 7 lakh

Finance Bill: Marginal relief for income slightly over Rs 7 lakh

Pakistan PM Sharif hopes to strike IMF deal as 'all conditions met'

Pakistan PM Sharif hopes to strike IMF deal as 'all conditions met'

Invest Smart: Why you need long-term investments in Mutual Funds

Invest Smart: Why you need long-term investments in Mutual Funds

Eurozone entered a recession at the beginning of 2023

Eurozone entered a recession at the beginning of 2023

24 international brands will have opened stores in India in 2023

24 international brands will have opened stores in India in 2023

Sensex, Nifty extend losses into second straight session, IT stocks drag

Sensex, Nifty extend losses into second straight session, IT stocks drag

More videos

Elon Musk: World's richest man re-enters $200 billion club

Elon Musk: World's richest man re-enters $200 billion club

Zomato stock price soars to a 52-week high, rising over 50% in the past 2 months

Zomato stock price soars to a 52-week high, rising over 50% in the past 2 months

ED arrests M3M group director Roop Bansal in money laundering case

ED arrests M3M group director Roop Bansal in money laundering case

Ministry of Civil Aviation ramps up hiring to make air travel safer

Ministry of Civil Aviation ramps up hiring to make air travel safer

Byju's Layoffs 2023: Byju's likely to layoff 1,000 more employees in a cost-cutting effort: Reports

Byju's Layoffs 2023: Byju's likely to layoff 1,000 more employees in a cost-cutting effort: Reports

McDonald's latest 'love story' ad receives backlash from netizens

McDonald's latest 'love story' ad receives backlash from netizens

PM Modi thanks ChatGPT creator OpenAI's CEO Sam Altman after meeting

PM Modi thanks ChatGPT creator OpenAI's CEO Sam Altman after meeting

Go First Bankruptcy: DGCA asks for CoC approval of revival plan

Go First Bankruptcy: DGCA asks for CoC approval of revival plan

Gold, Silver Rates Today 9 June 2023: Check Prices in Mumbai, Delhi, Chennai, Kolkata

Gold, Silver Rates Today 9 June 2023: Check Prices in Mumbai, Delhi, Chennai, Kolkata

Editorji Technologies Pvt. Ltd. © 2022 All Rights Reserved.