India unveils income tax cuts to boost slowing economy

India's finance minister unveiled broad income tax cuts on Saturday as Prime Minister Narendra Modi's government looks to bolster consumption and perk up a slowing economy.

"The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment," finance minister told parliament while unveiling the year's budget.

"Slabs and rates are being changed across the board to benefit all taxpayers." The finance minister said that individuals earning an annual income of up to 1.2 million rupees would now be effectively exempt from paying income tax. Cuts were also announced for a newer system introduced in 2020, with annual incomes of 1.6 million rupees to 2.4 million rupees now attracting a tax rate of between 20 percent and 25 percent, down from the earlier rate of 30 percent.