Salaried and business classes can expect major tax relief in Union Budget 2018-19 to be presented by Finance Minister Arun Jaitley today since the government would like them in its corner before the Lok Sabha elections next year.

This is the Narendra Modi government’s last full-fledged Budget before the 2019 General Elections. Next year, the government will present a Vote on Account instead of a traditional budget.

According to a report by the State Bank of India (SBI), with the rise in personal disposable income post the 7th Pay Commission, the Income Tax exemption limit needs to be raised by Rs 50,000 to Rs 3 lakh. The move will benefit around 75 lakh people, it said.

The SBI's Ecowrap report added that if the exemption limit of interest payments under housing loan is increased to Rs 2.5 lakh from Rs 2 lakh, it will benefit 75 lakh existing home loan buyers and cost the government just about Rs 7,500 crore.

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