The Union Budget tabled by Finance Minister, Nirmala Sitharaman a little while ago did not incentivize savings but promoted spending. There is no change in the Income Tax slabs affecting the Middle Class. As of now, people with less than Five Lakh Income need not pay the Income Tax.
The Budget proposed a 3 percent increase for annual incomes between Rs 2 crore and Rs 5 crore and a 7 percent increase for incomes above Rs 5 crore. Additional Rs 1.5 lakh deduction has been proposed on interest paid for affordable housing loans till March 2020.
But, this is applicable only for houses less than 45 Lakh Property Value. Additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to buy electric vehicles. The Middle Class is burdened by imposing a special additional excise duty and road and infrastructure cess each one by 1 rupee a liter on petrol and diesel.
Further, the government also increased the levy on gold to 12.5% from 10%.