The Indian tax landscape is set to undergo significant changes from April 1, 2025, particularly impacting homeowners. These revisions, aimed at providing relief and streamlining processes, necessitate a thorough understanding for anyone involved in the real estate sector.
Here’s a breakdown of the key changes you need to be aware of:
- The proposed amendment in the Budget 2025 lowers the TDS threshold for rental income from ₹2,40,000 per year to ₹50,000 per month or part thereof
- “Presently, the annual value of a self-occupied property is considered as NIL. If a homeowner does not occupy the property for specific reasons, i.e., due to employment or business or profession carried out at any other place, then the annual value of an additional property so occupied is also considered as NIL as per Budget 2025, which was not the case earlier.
- Say a homeowner holds one large house and is looking to sell such a house to buy two small units in the same vicinity (due to nuclearization of a joint family, etc.). “In such a case, the home can avail section 54 exemption on capital gains arising from the sale of the larger property on the subsequent purchase of two units and also now avail the NIL annual value benefit for the two houses.”
- “In order to streamline this provision, it is proposed to revise the threshold limit for TDS applicability. The proposed amendment increases the threshold from ₹2,40,000 per financial year to ₹50,000 per month or part thereof.”
- Since there will be no tax up to an income of ₹12 lakh as proposed in the budget, starting April 1, people who have a salaried income of ₹12 lakh will have an additional tax saving of ₹80,000 under the new tax regime. If we assume that Mr. Singh earning ₹12 lakh can save the entire ₹80,000, he or she can pay an additional EMI of ₹6,600. This will enable him to afford a higher-priced house.
- The finance minister launched the SWAMIH Fund-2 in Budget 2025. The aim fund is meant to provide relief to distressed housing projects. Under the first SWAMIH fund, 50,000 stalled projects were completed. This helped homebuyers paying EMIs for incomplete properties even as they were paying rent.
- Source: Click Here
Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.
