Lower effective tax rate of 39% instead of 42.74% in top bracket of new tax regime; here's how marginal relief works

Surcharge on income: Individuals having income(s) above Rs 50 lakh have to pay an additional tax known as 'surcharge'. Budget 2023 made Surcharge rate applicable on the highest income slab to 25% from 37%. Abhishek Soni from Tax2Win says, "This move brought down the effective tax rate from 42.74% to 39%."