Marginal Relief calculation above 2 Crore:

Marginal relief will be provided to certain taxpayers up to the amount of the difference between the excess tax payable (including surcharge) on the income above Rs. 50 lakhs, 1 crore, and 2 crores and the amount of income that exceeds Rs. 50 lakhs, 1 crore, and 2 crores.

Example :

Calculate tax on total income:

Total Tax - 58,90,965

Surcharge @ 25 % on total tax - 14,72,741

Now calculate tax on upto 2 Cr.:

Tax on income upto 2cr. (B) :- 5812500

Surcharge on tax up to 2cr @15% (C) :- 871875

Balance remaining income (20261550-20000000) (D) :- 261550

Hope this Helps.

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