New Delhi: Finance Minister Nirmala Sitharaman on Saturday slashed income tax for individuals, abolished dividend tax for companies and announced record spending in agriculture and infrastructure sectors to pull the economy out from its worst slowdown in more than a decade.

The cut in income tax rates, which would help save about R 31,000 a year in tax for people with annual income of up to R 17 lakh, was, however, conditioned on current exemptions and deductions, including standard deduction for R 50,000 as well as the waiver earned on payment of up to R 1.5 lakh in tuition fee of children, and contribution towards insurance premium and provident fund, being given up.