Budget 2024: Tax rebate likely to be hiked to Rs 7.5 lakh under new income tax regime

Interim Budget 2024: The Union Finance Ministry is expected to increase the tax rebate under the new tax regime to Rs 7.5 lakh from Rs 7 lakh currently, reported Mint. As per the report, the Finance Minister Nirmala Sitharaman may bring in a Finance Bill to make the changes.

Tax Rebate

If this is implemented, a person with an income of Rs 7.5 lakh, after a standard deduction of Rs 50,000, will not have to pay any income tax from 2024-25. In Budget 2023, the Centre raised the rebate under the new income tax regime to Rs 7 lakh from Rs 5 lakh. The basic exemption limit was also hiked to Rs 3 lakh from Rs 2.5 lakh earlier. The Centre also introduced a deduction of Rs 15,000 for a family pension.

Also Read: Budget 2024: What's the reason behind the shift in Budget date from February 28 to February 1?

As per Business Standard, a record 81.8 million income tax returns (ITRs) were filed for the assessment year 2023-24 till December 31. This was 9% higher than 75.1 million ITRs filed in the same period in 2022-23.

PTI quoted Deepak Mohanty, chairperson of the Pension Fund Regulatory and Development Authority last week and said that the body has recommended employer contributions to the National Pension Scheme up to 12% to be exempted from the income tax.