New Delhi, Feb 1: Union Budget 2018 may contain some good news for individual tax payers. The budget speech will be read out shortly. It is expected that Finance Minister Arun Jaitley will announce income tax benefits to taxpayers. (Full Coverage) Also Read - Income Tax Returns: Can You Save Tax by Gifting Money to Parents, Kids? Yes You Can | Here’s How  

It was reported earlier that Finance Minister Arun Jaitley may increase the exemption limit of income tax from Rs 2.5 lakh to Rs 3 lakh. This move will benefit millions of taxpayers. This would mean that the government might give a direct tax benefit of Rs 50,000 to tax payers. Also Read - India Fast Moving From Tax Terrorism to Tax Transparency, Says PM Modi

Arun Jaitley might also announce an increase in the exemption limit of tax benefits under Section 80C. Reports said that the limit could be increased to Rs 2 lakh from Rs 1 lakh 50 thousand. This will give the taxpayers an opportunity to save Rs 50,000 additionally. However, this benefit will be given to taxpayers who invest in long-term schemes like mutual funds. Also Read - I-T Dept Exposes Rs 500 Crore Fake Bill Entry Operation Racket, Raids 42 Locations Across India

Finance Minister Arun Jaitley will present the Union Budget 2018 on Thursday in Parliament. This will be the last full-fledged budget for the Modi government before the 2019 general elections. This is a very important budget for the economy as the government might announce measures to enhance public saving and investment. The government may also announce decisions that spur growth stunted by big-ticket economic reforms. The most keenly-watched aspect of the budget will be the decisions on individual taxpayers. It is widely reported that the government has a lot in store for income tax payers.