Finance Minister Nirmala Sitharaman boldly raised the income tax exemption level to boost consumption. Middle-class discretionary income boosts consumption, investment, and little savings. This will help India's economy.The Finance Minister declared that Rs 12 lakh annual income will be tax-free. The standard deduction brings it to Rs 12,75,000. A taxpayer earning Rs 12,75,000 will not pay tax. The Finance Minister declared that Rs 12 lakh annual income will be tax-free. The standard deduction brings it to Rs 12,75,000. A taxpayer earning Rs 12,75,000 will not pay tax. Nirmala Sitharaman raised the basic income exemption ceiling from 3 lakh to 4 lakh. Since the finance minister hiked the refund from Rs 25,000 to Rs 60,000, persons with annual incomes up to Rs 12,000,000 will pay zero tax.