New Delhi, Feb. 1 -- Under the new income tax slabs, income up to Rs.12 lakh will now be tax-free. Previously, income up to Rs.15 lakh was taxed between 5% and 20%, with anything above Rs.15 lakh taxed at 30%. The government released FAQs to clarify these changes, focusing on the new income tax structure and benefits for taxpayers.

The income tax reforms introduced in the budget are among the biggest in the last decade - simplified and rationalized to put more money in people's hands without compromising the fiscal deficit.

"The most important change has been the revision of the tax slabs to keep in line with inflation. This has been a long-standing request of the taxpayers for many years. In the updated tax reforms, with slabs adjusted...