In the budget 2024, the Central Government raised Rebate limit from Rs 5 lakh to Rs 7 lakh in New Tax Regime Nirmala Sitharaman proposed to raise the rebate limit from Rs 5 lakh to Rs 7 lakh in the new tax regime.
Therefore, if an individual has opted for the new tax regime, he or she will not be required to pay any tax up to an annual income of Rs 7 lakh. 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.