<h1>Government Plans Tax Overhaul: Higher Exemptions, Lower Fixed Deposit Lock-In to Boost Economy Post-Demonetisation.</h1> The government is anticipated to overhaul direct taxes in the upcoming Budget to stimulate the economy post-demonetisation, as per a report. Proposed changes include raising the personal income tax exemption limit to Rs. 3 lakh, increasing the section 80C exemption limit to Rs. 2 lakh, enhancing housing loan interest exemptions to Rs. 3 lakh, and reducing the lock-in period for bank fixed deposits from five to three years. These measures are expected to cost Rs. 35,300 crore but could be offset by revenue from IDS and cancelled RBI note liabilities. The GDP growth is projected at 7.1% for 2016-17, down from 7.6% in 2015-16.