Nil tax up to ₹12 lakh of taxable income under the new regime, and just above it a relief that caps the tax at the amount you crossed the line by.
Under the new regime, a resident individual with taxable income up to ₹12,00,000 pays no tax, because the section 87A rebate (now section 156) wipes it out. For a salaried person the ₹75,000 standard deduction sits on top, so a ₹12.75 lakh salary can still pay nil.
Just above the threshold, marginal relief limits the tax to the amount by which income exceeds ₹12 lakh. At ₹12,10,000 the tax is ₹10,000, not the ₹61,500 the slabs alone would give.
Work it out yourself
Try ₹12,00,000, then ₹12,10,000, then ₹13,00,000 and watch the relief taper off.
