There is no so much of income tax benefits for Middle class in Budget 2018.

With Union Budget 2018 being the last full budget for the Narendra Modi government going into the Lok Sabha polls next year, it is likely to offer  minor  relaxations to the middle class by lowering personal tax incidence especially to salaried people.

A proposal was recently made to the finance ministry by our Pensioners Association  calling for expanding the exemption limit from Rs 2.5 lakh per annum to  Rs 5 lakh(for all salary class) and to Rs. 7 lakh (for pensioners). Currently a tax of 5 per cent is applicable on annual income between Rs 2.5 and Rs 5 lakh. But it is learnt that the exemption limit may be enhanced to Rs. 3 lakh only. 

Tax slabs may also be further rationalised in the Union Budget 2018. Under existing slabs, 20 per cent tax is levied on annual income of Rs 5-10 lakh while 30 per cent tax rate is applicable for personal yearly earning above 10 lakh.

In the Union Budget 2018, Arun Jaitley may announce a cut of 10 per cent tax rate for the Rs 5-10 lakh slab bringing it to 10 per cent. A new tax slab may be introduced for annual income of Rs 10-20 lakh. There is no separate tax rate for this slab at present. Hence in the Budget proposals there is no so much of  income tax benefits for Middle class in Budget 2018. This will  happen because of failure on the part of Govt. to earn more tax from GST.