India, Feb. 2 -- Union finance minister Nirmala Sitharaman has said the government increased the income tax rebate from Rs.7 lakh to Rs.12 lakh to reduce the tax burden on people earning Rs.1 lakh per month.

Nirmala Sitharaman added that the government was also lowering tax slab rates and widening tax brackets to give relief to taxpayers across all income levels.

During a media interaction, the finance minister was asked to explain the reason behind increasing the income tax rebate from Rs.7 lakh to Rs.12 lakh, and whether this move was prompted by slower-than-expected growth in incomes and salaries.

"The government feels that if someone earns Rs1 lakh per month on average, she should not have to pay tax. We are achieving this in two w...