<h1>Zero income tax threshold under new tax regime expands tax exemption, reducing middle-class tax incidence.</h1> The Budget establishes a zero income tax threshold under the new tax regime, exempting personal income below a specified annual ceiling from income tax, with salaried taxpayers receiving an effectively higher threshold after accounting for the standard deduction; the reform reduces middle-class tax incidence and is intended to raise disposable income to boost consumption, savings and investment.