In Budget 2025, Finance Minister Nirmala Sitharaman has announced tax exemption on two self-occupied houses, which will boost real estate investment. Earlier this facility was only for one house. Experts believe that this will strengthen home ownership and the real estate sector.
In Budget 2025, Finance Minister Nirmala Sitharaman has given a big relief to homeowners by changing the rules for tax exemption on self-occupied houses. Now taxpayers will be able to avail tax exemption by showing two houses as self-occupied, whereas earlier this facility was only for one house. The Finance Minister said in the budget speech, “Till now taxpayers were allowed to show the annual value of self-occupied property as zero with certain conditions. But now, in view of their problems, this exemption will be given on two such houses without any condition.”
Experts believe that this decision is a big relief for those who own more than one house and had to bear the burden of tax. This will promote home ownership and also strengthen real estate investment. Adhil Shethi, CEO of Bankbazaar.com, said, this move will increase financial flexibility and simplify the tax system for the middle class. Also, this decision has been taken keeping in mind the diverse needs of homebuyers.
Apart from this, the government has also simplified tax deduction at source (TDS) on rented properties, which will reduce the burden of tax compliance on landlords and improve the availability of rental houses in metro cities. Earlier, homeowners could show only one property as tax-free, but now they can avail this benefit on two houses, which will eliminate the tax on notional rental income on the second home.
Real estate sector experts say that this move will also promote home ownership in small cities (tier-2 and tier-3). Anuj Puri, Chairman, ANAROCK Group, said, “Middle class homebuyers, landlords and investors will now have to bear less tax burden, which will increase their ability to purchase property. This decision will strengthen the real estate sector and increase the demand for homes.”
Most Read Articles:
- Big update for taxpayers! Even if your income is up to 12 lakhs, you may still be taxed! You will not get any benefit in these cases
- Post Offices New Service: Government’s big announcement, facilities ranging from loan to EMI will be available in post offices
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
