More disposable income and increased loan eligibility for the aam admi

Finance Minister Pranab Mukherjee’s recent budget announcements have come as a relief to the taxpayer. Under the revised tax structure, incomes between Rs 1.6 lakh and Rs 5 lakh will attract 10 per cent tax, while on incomes between Rs 5 lakh and Rs 8 lakh, 20 per cent tax will be applicable. For incomes above Rs 8 lakh, a rate of 30 per cent will be levied. The threshold for tax-free income remains unchanged at Rs 1.6
lakh. These tax concessions will put more money in the hands of consumers.The revision in income tax slabs will increase the takehome salary of an individual earning 10 lakh per annum by Rs 50,000. This means
that if he was earlier able to afford to pay EMIs for a loan of Rs 10 lakh, thanks to his increased disposable income, his eligibility for a housing loan has now increased by approximately Rs 5 lakh. The new tax slab would certainly bring a smile on the face of the aam aadmi. For example, Ramesh, a
resident of Delhi, earns a gross salary of Rs 1,00000 per month (Rs 12,00000 per annum). His salary structure and investments are as
follows: