New Delhi, Feb. 4 -- Prime minister Narendra Modi on Tuesday said the income tax rationalization undertaken by the Centre in the last 10 years has left more money in the hands of the middle class.

The Union budget presented on 1 February made income up to Rs.12 lakh tax-free, up from Rs.7 lakh earlier. Factoring in the standard deduction of Rs.75,000 for the salaried class, an income up to Rs.12.75 lakh will be tax-free. This income, however, excludes capital gains, which are taxed at separate short-term and long-term tax rates.

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In his reply to the motion of thanks on the President's address, Modi also drew a comparison with the UPA government, s...