Salaried class has got something to cheer with Finance Minister Arun Jaitley today raising tax exemption limit to Rs 2.5 lakh from Rs 2 lakh, providing a relief of Rs 50,000.

Representational picture

The proposal, according to an estimate, is likely to benefit about 2 crore tax payers. Similarly, he raised tax exemption limit from Rs 2.5 lakh to Rs 3 lakh in the case of senior citizens. "I do not propose to make any change in the rate of surcharge for either for corporates or individual.

The education cess for all tax payers shall continue at 3 per cent," he said.

The FM also raised investment limit under 80 C has to Rs 1.5 lakh from the existing Rs 1 lakh to encourage savings. Investment in Public Provident Fund up to Rs 1.5 lakh would now be exempt from tax. This was earlier pegged at Rs 1 lakh.

He also raised tax deduction limit on account of interest of housing loan in case of self occupied property to Rs 2 lakh from Rs 1.5 lakh.