New Delhi, May 15 -- According to the Union Budget for 2025-26, presented by Finance Minister Nirmala Sitharaman, starting from financial year 2026-27, there will be no income tax under the new regime on annual incomes of up to Rs.12 lakh.

But what happens if your salary is slightly higher than that? In such cases, the government provides taxpayers with a benefit called marginal relief, which ensures that the additional tax payable does not exceed the amount by which your income crosses the Rs.12 lakh threshold.

Earlier, marginal relief was only applicable to surcharges under the old tax regime. However, post- Budget 2024, this benefit is available in the new tax regime too. Here's how this benefit works in each tax regime.

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