Double Delight for Homeowners: Budget 2025 Game Changing Tax Breaks Unveiled!

Delhi - In a landmark move set to redefine property ownership in India, Budget 2025 has introduced tax reforms that promise significant relief for homeowners. Previously, individuals could designate only one property as 'self-occupied' for tax purposes, while any additional properties attracted taxes on notional rental income. This often deterred potential investors and burdened those owning multiple homes.  

The latest amendment allows homeowners to claim up to two properties as self-occupied, eliminating the notional tax on a second home. This shift is expected to encourage investment in second homes and properties in smaller cities, fostering growth in the real estate sector.  

Industry experts have lauded this development, highlighting that the removal of notional tax on a second home will minimize tax pressures, promote homeownership, and facilitate real estate investment, particularly in Tier 2 and Tier 3 cities.  

Additionally, the budget has raised the Tax Deducted at Source (TDS) threshold on rental income from ₹2.4 lakh to ₹6 lakh annually. This means TDS will now apply only when monthly rent exceeds ₹50,000, providing further financial ease to property owners.