Budget 2025: Homeowners Get Tax Break on Second Self-Occupied Property
Click to start listening
Synopsis
The Union Budget 2025 brings significant relief to homeowners as Finance Minister Nirmala Sitharaman announces new tax benefits, allowing nil valuation for two self-occupied houses, raising TDS thresholds, and easing financial burdens for small taxpayers and landlords.
Key Takeaways
- Nil valuation now allowed for two self-occupied houses.
- Amendment to Income-tax Act's Section 23 proposed.
- TDS threshold on rent increased from Rs 2.4 lakh to Rs 6 lakh.
- Monthly TDS limit raised from Rs 24,000 to Rs 50,000.
- Changes aim to support small taxpayers and landlords.
New Delhi, Feb 2 (NationPress) The Union Budget 2025 has delivered positive news for homeowners, as Finance Minister Nirmala Sitharaman unveiled new tax benefits.
As part of the proposed amendments, homeowners will be permitted to declare a nil valuation for two self-occupied houses instead of the previous limit of just one.
The Budget proposes changes to Section 23, sub-section (2) of the Income-tax Act, which allows the annual value of a property to be considered as nil if the owner resides in it or is unable to do so.
"Currently, taxpayers can only claim the annual value of self-occupied properties as nil if specific conditions are met," Finance Minister Sitharaman stated during her Budget address in Parliament.
She further noted that in light of the challenges faced by taxpayers, the proposal aims to extend the benefit to include two self-occupied properties without any conditions.
Moreover, the government intends to increase the annual threshold for Tax Deduction at Source (TDS) on rent from Rs 2.4 lakh to Rs 6 lakh.
This adjustment will aid small taxpayers and landlords by minimizing the number of transactions that require TDS.
The monthly TDS limit for rent has risen from Rs 24,000 to Rs 50,000, totaling Rs 6 lakh annually.
"I propose to streamline TDS by lowering the number of rates and thresholds that trigger TDS deductions," FM Sitharaman expressed in her Budget speech.
The Finance Minister added that further increases in threshold amounts for tax deduction will be made for improved clarity and consistency.
According to the Finance Minister, this modification will offer relief to small taxpayers receiving modest rental incomes.
