A new tax regime eliminates income tax for earnings up to 12 lakh rupees, extending to 12.75 lakh rupees for salaried individuals due to a standard deduction. The revised structure introduces lower slab rates, with 5% for incomes between 4 to 8 lakh, 10% for 8 to 12 lakh, and progressively higher rates up to 30% for those earning above 24 lakh. Examples illustrate that middle-income earners fully benefit from the tax changes, receiving rebates that significantly reduce their overall tax outlay. The reform aims to increase household savings, consumption, and investment, despite a notable revenue sacrifice in both direct and indirect taxes.