Tax Planning Tool

Marginal Relief Truth Calculator

The viral "₹12 lakh cliff" reel is wrong. Marginal relief exists. Type your income and see the real tax — slab by slab, rebate applied, cess included.

Your income (AY 2026-27, New Regime)

Gross Salary

₹

Salaried (apply ₹75,000 standard deduction u/s 16(ia))

Other ordinary income (FD interest, rent, etc.)

₹

Sec 111A STCG (equity/MF short-term, after Jul 23 2024 — 20% flat)

₹

Sec 112A LTCG (equity/MF long-term, net of ₹1.25L threshold — 12.5%)

₹

Tax computation

✓ Zero tax payable

Includes cess · marginal relief and rebate applied where eligible

Gross salary₹12,50,000

Standard deduction (s.16(ia))− ₹75,000

Taxable ordinary income₹11,75,000

Slab-by-slab breakdown

Slab	Taxable in band	Tax
Up to ₹4L — Nil	₹4,00,000	₹0
₹4L–₹8L @ 5%	₹4,00,000	₹20,000
₹8L–₹12L @ 10%	₹3,75,000	₹37,500
Slab tax subtotal		₹57,500

Sec 87A rebate (income ≤ ₹12L)− ₹57,500

Tax before cess₹0

Health & Education Cess (4%)₹0

Total tax payable₹0

Computation for indicative purposes only. Cite: s.87A, s.115BAC, s.111A, s.112A, s.16(ia), Finance Act 2025, AY 2026-27. Read our full ₹12L claim audit →