New Delhi, Feb. 4 -- Union Budget raising the income tax exemption limit to Rs 12 lakh is expected to give a big boost to the demand of 2-wheelers (2Ws) and passenger vehicles (PVs) according to a report by the global brokerage firm Jefferies.

The report highlighted that the proposed tax relief will provide the Indian middle class with a total tax benefit of approximately Rs 1 lakh crore, which could lead to increased discretionary spending, including on automobiles.

It said, "The proposed income tax cuts should help the Indian middle class with a total tax benefit of approx. Rs1.0Trn, which is likely to boost discretionary consumption including demand for two-wheelers (2W) and passenger vehicles (PV), especially in urban areas".

Jeffe...