In the 2013-14 Budget, Finance Minister P Chidambaram announced many changes that will have direct impact on the middle class. Let's have a look at some of the main announcements:

Mr. Chidambaram allowed some institutions to issue tax free bonds of up to Rs 50,000 crore in the current fiscal. It means middle class can avail more tax-free bonds this year.

The finance minister also hiked the income threshold for investment in Rajiv Gandhi Equity Saving Scheme (RGESS) from Rs 10 lakh to 12 lakh. It is really encouraging news for new first-time investors.

Those who will take a housing loan of less than Rs 25 lakh in this fiscal, then you will be able to claim additional tax break of Rs 1 lakh on interest payment, in addition to currently permitted Rs 1.5 lakh.

For the inflation-worried people, the finance minister also announced inflation indexed national security certificates and inflation indexed bonds. More detains in this regard will be announced soon.

A tax credit of Rs 2,000 has been announced for people with annual income of less than Rs 5 lakh. It means these individuals will liable to pay Rs 2,000 less.

Securities transaction tax (STT) on mutual funds (MFs) has been from 0.25 per cent to 0.001 per cent.

People planning to visit a foreign country will be able to enjoy bigger duty-free shopping. The limit has been hiked to Rs 50,000 for a men and Rs 1 lakh for women.