India, Feb. 1 -- The government has revamped the tax structure under the new regime, with Finance Minister Nirmala Sitharaman announcing that individuals earning up to Rs 12 lakh annually will pay no income tax.

This move, part of the latest Budget, aims to boost disposable income and encourage savings, ultimately driving domestic consumption.

Who Benefits and how?

The Rs 12 lakh exemption applies only to those earning within this threshold. Individuals earning more must follow the slab-wise taxation system. Additionally, with a standard deduction of Rs 75,000 under the new regime, the effective tax-free income rises to Rs 12.75 lakh.

Revised tax slabs

The new structure broadens tax brackets:

- Rs 0-4 lakh: No tax

- Rs 4-8 lakh: 5%...