NEW DELHI: 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 moremoney in their hands, boosting household consumption, savings and investment,` finance minister Nirmala Sitharaman told parliament while unveiling the year`s budget.

She said that individuals earning an annual income of up to INR1.2m would now be effectivelyexempt from paying income tax.

The previous threshold was INR700,000. Cuts were also announced for a newer system introduced in 2020, with annual incomes of INR1.6m to INR2.4m now attracting a tax rate of between 20pc and 25pc, down from the earlier rate of 30pc.-AFP