Finance Minister Nirmala Sitharaman announced zero income tax for individuals earning up to ₹12 lakh annually. However, the updated tax slabs still dictate 5% tax on ₹4-8 lakh annual income and 10% tax on ₹8-12 lakh annual income. This is done to calculate tax for individuals earning more than ₹12 lakh annually as India follows a progressive taxing system.