Budget 2018: Increase tax exemption limit to Rs 300,000, says SBI report

budget 2018 With rise in personal disposable income post 7th Pay Commission, the income tax exemption limit needs to be raised by Rs 50,000 to Rs 300,000 a SBI report said today.

The move will benefit around 75 lakh people, it said.

The SBI's Ecowrap report further said that if the exemption limit of interest payments under housing loan is increased to Rs 250,000 for existing home loan buyers, from Rs 200,000 now, it will benefit 75 lakh home loan buyers and cost the government just about Rs 75 billion.

Finance Minister Arun Jaitley is set to present the fifth and final full budget of the current government on February 1.

The government has periodically increased the income tax slabs from Rs 22,000 in 1990-91 to Rs 2.5 lakh in 2014-15.

"Due to 7th pay commission, the personal disposable income has been increased, so we believe there is a need to raise the exemption limit to Rs 300,000. Due to such increase in limit, around 75 lakh tax payers will be exempted from income tax," said the report -- 'Union Budget: If wishes were horses!'.