India, Feb. 2 -- Union Finance Minister Nirmala Sitharaman has explained the reason behind increasing tax exemption to Rs. 12 lakh and said her government wanted to recognise the honest taxpayer and extend support to the middle class.

"Our focus is to increase consumption. The government always recognised honest taxpayers. Our aim was to provide support to the middle class. Those earning Rs 1 lakh need tax relief," Sitharanman told NDTV.

Giving relief to Indian taxpayers and providing a boost to consumption, Union Finance Minister Nirmala Sitharaman on Saturday announced in her budget speech that people with salaries up to 12 lakhs will not be required to pay tax in the new tax regime.

Changes in the tax slabs were also announced.

As ...