Explained: How new tax proposals will bring cheer to the middle class

The middle classes will be benefitted if the government accepts proposals by the task force on the simplification of direct tax legislation. The task force has proposed five tax slabs. People having income up to Rs 5 lakh will have to pay zero tax. Those earning between Rs 5-10 lakh can save up to Rs 37,500 a year. Those earning between Rs 10- 20 lakh can expect a benefit of about Rs 1 lakh. A person earning Rs 2 crore can hope to save around Rs 8.5 lakh. If accepted, these proposals will come as a big relief for the middle classes, especially those earning between Rs 5 lakh and Rs10 lakh a year.