Marginal Relief Computation in Mohali
CA-managed marginal relief computation for AY 2026–27 — we check whether your income marginally crosses a surcharge threshold (₹50 lakh, ₹1 crore, ₹2 crore, ₹5 crore) or the Section 87A rebate limit under the new regime, apply the correct relief so your extra tax never exceeds your extra income, and cross-verify it before your return is filed. 100% online.
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Marginal Relief Computation in Mohali
RoC Chandigarh — Kendriya Sadan, Sector 9-A, Chandigarh – 160009
Punjab & Haryana High Court
03 (Punjab)
Punjab does not levy Professional Tax.
IT Park Phase 8B, Industrial Area Phase 7/8/9, Sector 82, Aerocity
Mohali (SAS Nagar) is the IT hub of Punjab-Chandigarh tricity. Phase 8B IT Park houses Infosys, Quark, and hundreds of IT/BPO companies. Also a growing pharma manufacturing centre.
What Is Marginal Relief Computation?
A quick, plain-language explanation before the details.
Marginal relief is a benefit that caps your extra tax so it never exceeds the extra income you earned above a surcharge or rebate threshold — you should not pay more additional tax than the additional income that pushed you over the line.
Under the Income-tax Act, 1961, marginal relief is given where a marginal increase in income above a surcharge threshold (₹50 lakh, ₹1 crore, ₹2 crore or ₹5 crore) causes tax-plus-surcharge to rise by more than the increase in income; a similar relief applies to the Section 87A rebate under the new regime just above the rebate ceiling.
Administered by the Income Tax Department; the relief is computed automatically in the e-filing portal and offline ITR utility as part of the tax-liability computation.
Marginal relief is applied in the year of computation for the relevant assessment year and reflects in the tax payable on your return — there is no separate certificate or expiry.
Quick Facts
Is This Service Right for You?
Ideal for
- High-income earners whose total income marginally crosses ₹50 lakh
- Taxpayers just above ₹1 crore, ₹2 crore or ₹5 crore surcharge slabs
- New-regime taxpayers with income just above the Section 87A rebate ceiling
- Salaried and business taxpayers near a surcharge or rebate boundary
- Anyone comparing old vs new regime around a threshold
- Taxpayers estimating advance tax near a surcharge slab
You may need this if
- Your total income has marginally crossed ₹50 lakh, ₹1 crore, ₹2 crore or ₹5 crore
- Your new-regime income is just above the Section 87A rebate limit
- Your tax appears to jump by more than your extra income
- You want the correct surcharge computed after relief
- You need marginal relief factored into advance-tax estimates
- You want your ITR computation cross-verified before filing
Not sure if you need this?
Talk to an Expert →Why Marginal Relief Matters
Getting marginal relief right prevents overpayment of tax and mismatch notices when your income sits close to a surcharge or rebate boundary. Here is why it matters.
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01
Prevent Overpayment
Marginal relief caps your extra tax at your extra income, so a small increase over ₹50 lakh, ₹1 crore or the rebate ceiling does not trigger a disproportionate tax jump.
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02
Surcharge, Correctly Applied
Surcharge of 10%/15%/25%/37% is levied only after relief. We compute the net surcharge accurately at every threshold crossing so you never overpay.
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03
Section 87A Relief (New Regime)
Under Budget 2025 the new-regime rebate makes income up to the ceiling tax-free; relief just above the ceiling stops a cliff-edge jump in tax on a few thousand rupees of extra income.
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04
Both Regimes Compared
Surcharge marginal relief applies in old and new regime alike. We compute both and file the lower-tax option so the relief works in your favour.
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05
Clean, Notice-Free Return
Correct marginal-relief computation keeps your tax figures consistent with the portal, reducing 143(1) intimations and mismatch notices.
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06
Advance-Tax Accuracy
Factoring relief into quarterly advance-tax estimates avoids under-payment and 234B/234C interest for income near a surcharge slab.
Simple, Transparent Pricing
Custom quote for your case
Fees depend on your business type and scope. Get a clear, itemised quote upfront — no hidden professional charges, government fee billed at actuals.
Who Can Apply?
Eligibility checklist
- Total income marginally above a surcharge threshold (₹50L / ₹1Cr / ₹2Cr / ₹5Cr), or just above the new-regime Section 87A rebate ceiling
- Tax-plus-surcharge (or tax after loss of rebate) rising by more than the increase in income
- A computation under the applicable regime — surcharge relief applies in old and new regime; 87A relief applies in the new regime
- Income figures reconciled with Form 26AS and AIS/TIS
- The relief reflected in the tax-liability computation of the correct ITR form
- Advance-tax estimates that account for the relief where income is near a slab
Everything You Need. One Professional Team.
Threshold Check
Identify whether your income marginally crosses a surcharge slab or the Section 87A rebate ceiling.
Surcharge Computation
Compute surcharge at the correct rate (10%/15%/25%/37%) for your income band.
Marginal Relief Calculation
Apply relief so tax-plus-surcharge does not exceed the income above the threshold.
Section 87A Relief
Compute new-regime rebate relief just above the rebate ceiling to prevent a cliff-edge jump.
Regime Comparison
Compare old and new regime around the threshold and choose the lower-tax option.
Cess & Net Tax
Compute 4% Health & Education Cess on tax plus surcharge after relief, and the final payable.
ITR Cross-Verification
Verify the portal-computed relief in your return before submission.
Advance-Tax Guidance
Factor relief into quarterly advance-tax estimates near a surcharge slab.
What You’ll Receive
What Documents Help Us Compute Marginal Relief?
Marginal relief hinges on your exact total income, so we start from your income and TDS records, add any one-time income that spikes you near a slab, and reconcile everything before computing. Keep clear scans (PDF/JPG) ready — collected securely online.
Income & TDS
Proof of income and tax paid- Form 16 / 16A (salary & TDS certificates)
- Form 26AS (tax credit statement)
- AIS / TIS (Annual Information Statement)
- Bank & interest statements for the financial year
Capital Gains & Other
Where income spikes near a slab- Capital gains statements (equity, MF, property)
- Property sale / purchase deeds
- Details of one-time or windfall income
- Business / professional income summary
Deductions & Identity
For regime comparison- 80C / 80D / 80G and other deduction proofs
- Home-loan interest certificate (Section 24)
- Rent receipts / HRA proof
- PAN and Aadhaar (linked)
Exact income drives the relief
Marginal relief depends on the precise total income above the threshold. Even a small change in income can change whether relief applies, so accurate figures matter more here than usual.
Reconcile 26AS and AIS
Form 26AS shows TDS/TCS and taxes paid; the AIS/TIS reports interest, dividends, securities and property. Reconciling before computing prevents surprises at a slab boundary.
Regime affects 87A relief
Surcharge marginal relief applies in both regimes, but the Section 87A rebate relief applies in the new regime. We compare both before finalising.
Factor it into advance tax
For income near a surcharge slab, marginal relief should be built into quarterly advance-tax estimates to avoid 234B/234C interest.
Don’t have all the documents?
We’ll identify what your case needs →How Marginal Relief Computation Works (Step by Step)
The entire process is 100% online through the income-tax e-filing portal, with status updates throughout.
Consultation
Understand your income sources and whether you are near a surcharge or rebate threshold.
Documents
Collect Form 16, 26AS, AIS, capital-gains and deduction proofs securely online.
Threshold & Surcharge
Determine the applicable surcharge slab and compute the surcharge at the correct rate.
Marginal Relief Computed
Apply surcharge relief and, in the new regime, Section 87A rebate relief; add 4% cess after relief.
Review & Cross-Verify
Compare old vs new regime, cross-check the portal computation and share the result for your approval.
Filed & Verified
File the return with the relief correctly reflected and complete e-verification within 30 days.
Marginal Relief — How the Surcharge Thresholds Work
| Stage | Expected Time |
|---|---|
| Income ₹50 lakh – ₹1 crore — surcharge 10% | Relief on marginal crossing of ₹50L |
| Income ₹1 crore – ₹2 crore — surcharge 15% | Relief on marginal crossing of ₹1Cr |
| Income ₹2 crore – ₹5 crore — surcharge 25% | Relief on marginal crossing of ₹2Cr |
| Income above ₹5 crore — surcharge 37% (25% new regime) | Relief on marginal crossing of ₹5Cr |
Marginal relief = surcharge payable − (income above the threshold), given only where the surcharge exceeds the extra income; net tax = tax + (surcharge − relief) + 4% cess. Surcharge relief applies in both old and new regime, while the Section 87A rebate relief applies just above the new-regime rebate ceiling. The new regime caps the top surcharge at 25%.
Key Dates — At a Glance
| Frequency | What Is Due |
|---|---|
| Before You File | Confirm the exact total income and applicable slab · Check whether surcharge marginal relief applies · Compare old vs new regime around the boundary |
| At Filing | Verify the portal-computed relief in the ITR · Ensure cess is on tax plus surcharge after relief · E-verify the return within 30 days |
| Quarterly | Factor marginal relief into advance-tax estimates · Track income spikes (bonus, capital gains) near a slab · Review AIS for newly reported transactions |
| If Income Changes | Re-check the slab if income rises during the year · Reassess relief if a one-time gain is added · Adjust the next advance-tax instalment accordingly |
Dates are indicative and may change with government notifications. Our team tracks every deadline so you never miss a filing.
Doing It Yourself vs TaxClue
Doing It Yourself
- Work out which surcharge slab your income falls into yourself
- Compute surcharge at 10%/15%/25%/37% correctly
- Compare surcharge against the income above the threshold
- Apply Section 87A rebate relief in the new regime accurately
- Compute cess on tax plus surcharge after relief
- Compare old vs new regime around the boundary
- Risk overpaying tax or a mismatch notice on an error
With TaxClue
- CA identifies the exact surcharge slab for your income
- Surcharge computed at the correct rate for you
- Marginal relief applied so extra tax never exceeds extra income
- Section 87A rebate relief computed in the new regime
- Cess computed on the post-relief figure
- Both regimes compared — the lower-tax option filed
- Portal computation cross-verified before filing
Skip the guesswork.
Let an expert handle it →Common Mistakes That Delay Your Application
TaxClue reviews your documents before filing to reduce avoidable errors.
What to Keep in Mind Around a Threshold
Before You File
- Confirm the exact total income and applicable slab
- Check whether surcharge marginal relief applies
- Compare old vs new regime around the boundary
At Filing
- Verify the portal-computed relief in the ITR
- Ensure cess is on tax plus surcharge after relief
- E-verify the return within 30 days
Quarterly
- Factor marginal relief into advance-tax estimates
- Track income spikes (bonus, capital gains) near a slab
- Review AIS for newly reported transactions
If Income Changes
- Re-check the slab if income rises during the year
- Reassess relief if a one-time gain is added
- Adjust the next advance-tax instalment accordingly
Penalties & Consequences
What is at stake if you do not comply
- Computing surcharge without marginal relief overtaxes a small income increase
- Applying the Section 87A rebate relief in the old regime by mistake
- Computing 4% cess before relief instead of after overstates the tax
- Ignoring one-time capital gains that push income over a surcharge slab
- Not factoring marginal relief into advance tax attracts 234B/234C interest
Regulatory Updates 2025–26
- FY 2025-26: Under the default new regime, a resident individual pays nil tax up to ₹12 lakh total income via the enhanced Section 87A rebate.
Why Businesses Choose TaxClue
CA / CS Team
Qualified Chartered Accountants and Company Secretaries compute your relief and tax accurately.
Cross-Verified
We cross-check the portal-computed marginal relief before your return is filed.
Both Regimes
Old and new regime compared around the threshold so the relief works in your favour.
100% Online
Everything over WhatsApp / email — no office visits ever required.
Transparent Fees
A clear quote confirmed upfront — ₹0 hidden professional charges.
Post-Filing Support
Guidance continues after filing, including notice handling if a query is raised.
Your Documents Deserve Professional Care
- Documents handled by professionals under confidentiality
- Access limited to the team working on your file
- Communication over secure digital channels
- Documents retained only as long as needed for compliance
Frequently Asked Questions
What is marginal relief in income tax and who gets it?
How is surcharge marginal relief calculated?
What is Section 87A rebate marginal relief under the new regime?
Do I need to manually calculate or declare marginal relief in my ITR?
Is marginal relief available in the old tax regime?
At which income levels does surcharge apply and marginal relief kick in?
Why does a small increase in income sometimes cause a big jump in tax?
Does marginal relief affect the 4% Health & Education Cess?
Does marginal relief apply to capital gains that push me over a threshold?
How does marginal relief affect advance tax?
Which ITR forms reflect marginal relief?
Can TaxClue just check my marginal relief without filing my whole return?
What is marginal relief on surcharge in simple terms?
Can you give an example of marginal relief above ₹50 lakh?
How much extra income do I need to earn before marginal relief stops applying?
Is there marginal relief for the ₹12 lakh nil-tax limit in the new regime?
Does marginal relief apply to companies and firms too?
Official Sources & Legal References
Every figure on this page — surcharge rates, thresholds and the rebate provision — is drawn from primary law and official government sources. Verify them directly:
- Income Tax Department — Department portalOfficial portal of the Income Tax Department
- Income Tax e-Filing portalFile your ITR — marginal relief is computed automatically in the tax liability
- Income-tax India — Act, rules & ratesIncome-tax Act 1961, surcharge rates and Section 87A rebate
- ICAI — Institute of Chartered Accountants of IndiaProfessional body of Chartered Accountants
Related Guides
Marginal Relief Computation Resources — All Free
Get Your Marginal Relief Computed by a CA
Expert-managed marginal relief and tax computation for AY 2026–27 — surcharge and Section 87A relief applied correctly, old vs new regime compared, and cross-verified before filing. Free consultation, transparent fee quoted upfront, zero hidden charges.