Income Tax Slab FY 2023-24: What is new Marginal relief given in Finance Bill passed from Lok Sabha:

There was no marginal relief prescribed with the implication that the once the income exceeds Rs. 7 lakh (say Rs. 7.05 lakh). This would mean that increase in Income Tax would be more than the increase in Income.

Income Tax New Regime AY 2024-25

CA Pratibha Goyal

Mar 24, 2023

Last update on Mar 24, 2023

Income Tax Slab FY 2023-24: What is new Marginal relief given in Finance Bill passed from Lok Sabha Marginal relief is provided when an increase in Tax is more than the increase in Income. As per the Finance Bill, 2023, it was proposed that there would be no requirement to pay tax under the new regime in case the income does not exceed 7 lakhs. Know the new rebate under section 87A: Budget 2023 However, there was no marginal relief prescribed with the implication that the once the income exceeds Rs. 7 lakh (say Rs. 7.05 lakh). This would mean that increase in Income Tax would be more than the increase in Income. To remove this anomaly, marginal relief has now been proposed to be prescribed which would mean that the tax payable shall not exceed the income exceeding Rs. 7 lakhs.

Let's try to analyze the impact of this.

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CA Pratibha Goyal

Co Founder

CA Pratibha Goyal is Chartered Accountant qualified in 2016, is a Member of The Institute of Chartered Accountants of India having wide experience in the field of Auditing, Taxation, ROC, GST and Secretarial matters etc. She has written over a thousand articles & has made several videos on topics related to Auditing & Taxation. As a Speaker she has delivered various sessions on various branches of NIRC of ICAI.