Marginal relief

Two thresholds would otherwise create a cliff. Just above the 87A limit, losing the rebate would make the whole slab tax payable at once; marginal relief caps the tax at the income earned above the limit. Under the new regime that relief runs from a salary of ₹12,75,000 to ₹13,45,589, after which ordinary slab tax is lower than the cap.

Surcharge has the same rule: where income is only just past a surcharge threshold, such as ₹50,00,000, the extra tax from the surcharge cannot exceed the income above the threshold.