New Delhi, Feb. 1 -- Finance Minister Nirmala Sitharaman announced a major overhaul of the income tax system while outlining the Budget on Saturday. Individuals earning up to Rs.12 lakh annually will no longer have to pay any tax under the new income tax regime - with benefit of Rs.80,000. Sitharaman also proposed a change to the exemption limits and rejigged the tax slabs and rates across the board.

Sitharaman announced on Saturday that there would be "no income tax payable upto income of Rs.12 lakh" under the new regime - other than special rate income such as capital gains. This limit will be Rs.12.75 lakh for salaried tax payers due to standard deduction of Rs.75,000.

"Slabs and rates are being changed across the board to benefit al...