Budget Reactions: RGESS to benefit salaried class

The Budget has been mostly neutral for salaried people, with the rate of income tax being unchanged. However, there are some positive impacts, such as the enhancement of the Rajiv Gandhi Equity Savings Scheme with the eligibility being increased to people having an annual income of Rs12 Lakhs from Rs 10 lakhs earlier. The duration has also been increased from one year to three years, giving a breather for first time investors to space out their investments.

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Investors whose annual income is between Rs 2 -5 Lakhs can also benefit from a tax credit of Rs 2,000. The finance minister has also incentivized first time house buyers who take a housing loan of up to Rs 25 Lakhs, by permitting them to deduct an additional Rs 1 Lakh interest against their taxes.