Union Finance Minister Nirmala Sitharaman has announced that the income tax rebate limit increased to Rs 7 lakh in the new tax regime.
The limit will be increased from Rs 5 lakh currently by Rs 2 lakh in an announcement which is bound to bring cheers to the taxpayers.
“I introduced in 2020, the new personal income tax regime with 6 income slabs, starting from Rs 2.5 Lakhs. I propose to change the tax structure in this regime by reducing the number of slabs to 5 and increasing the tax exemption limit to Rs 3 Lakhs,” FM Nirmala Sitharaman added in the Budget speech.
FM further announced the average processing time for income tax returns will be reduced from 93 days to 16 days. Centre intends to roll out next-gen common IT Return forms. Government also aims to strengthen grievance redressal mechanism.
