Step 1: Calculate your normal tax using the slabs

Step 2: Check if this tax exceeds your excess income (income - ₹12,00,000)

Step 3: If yes, apply marginal relief and limit tax to the excess amount

Example: Income ₹12,50,000 → Excess = ₹50,000 → Tax limited to ₹50,000 maximum

This is where the Section 87A marginal relief calculator 2025 becomes invaluable. It automatically applies this rule and shows you the exact tax you'll pay without worrying about the complex calculations.

The benefit is automatic—you don't need to claim it separately. Once your income crosses ₹12 lakh, the calculator (and tax department) will apply this relief for you.

Your Taxable Income (₹): This is your total income after standard deduction (if salaried) and other applicable deductions

Salaried Status (Yes/No): This helps the calculator provide context about the ₹75,000 standard deduction

Tax Before Rebate: Your tax calculated using the New Regime slabs

Section 87A Rebate Applied: The actual rebate you receive (usually up to ₹60,000)

Marginal Relief Benefit: Additional relief if your income exceeds ₹12 lakh

Final Tax Payable (Before Cess): Your tax after all reliefs

Final Tax Payable (Including 4% Cess): The absolute final amount you owe (includes Health & Education Cess)

It also shows a slab-wise breakdown so you understand exactly how your tax is calculated. This transparency helps you see where your money is being taxed and why.