Step 1: Net Taxable Income Calculation 💼 Gross Income = ₹13,00,000 🔹 Standard Deduction = ₹75,000 After applying the standard deduction, your net taxable income becomes: 💰 ₹13,00,000 - ₹75,000 = ₹12,25,000 Now, since your taxable income exceeds ₹12L, you lose the ₹12L rebate and will have to pay tax on the full ₹12,25,000 instead of ₹12,00,000. Step 2: Tax Calculation Using New Regime Slabs Let’s calculate the tax for ₹12,25,000 taxable income: (refer slab rate image) Total Tax (Before Cess) ₹63,750 + 4% Cess ₹2,550 Total Tax Payable ₹66,300 ⚠️ That’s ₹66,300 in tax! And this is for earning just ₹25,000 extra! It doesn’t seem fair, right? Step 3: How Marginal Relief Saves You! That’s where Marginal Relief comes in. This relief ensures you don’t pay more tax than the extra income you earned after crossing ₹12L. Here’s how it works: Excess Tax = ₹66,300 Excess Income = ₹25,000 Thanks to Marginal Relief, you’ll only pay tax on ₹25,000 (your additional income) instead of ₹66,300! Final Tax Payable with Marginal Relief = ₹25,000! 🙌