Marginal relief limits surcharge-driven tax increases so excess income above one crore is not disproportionately taxed.

Marginal relief applies where total income exceeds one crore rupees and surcharge makes the combined income-tax and surcharge rise by more than the excess income. The rule limits the additional tax burden attributable to surcharge so that total tax payable on income above the threshold does not exceed the tax on one crore rupees by more than the amount of income exceeding that limit. The illustration shows that surcharge is reduced to the extent needed to avoid disproportionate taxation.

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