
Homeowners have been given fresh benefits in the Union Budget 2025 by Finance Minister Nirmala Sithraraman after it proposed to exempt tax on a second house if it is self-occupied.
Taxpayers will be able to claim nil valuation for two self-occupied houses instead of one allowed previously.
The budget proposes to amend Section 23 sub-section (2) of the Income-tax Act. It now says: “The annual value of the property consisting of a house or any part thereof shall be taken as nil, if the owner occupies it for his own residence or cannot actually occupy it due to any reason.”.
This will ease compliance burden on homeowners.
The government has also proposed increasing the annual threshold for Tax Deduction at Source (TDS) on rent from the current Rs 2.4 lakh to Rs 6 lakh, that can benefit small taxpayers and landlords.