Budget 2025: Finance Minister Proposes Tax Relief for Second Self-Occupied House
Finance Minister Nirmala Sitharaman has announced a significant tax relief for individuals owning a second self-occupied house in the Budget 2025. This move aims to boost the real estate sector and provide financial benefits to homeowners. Experts in the
Budget 2025Tax ReliefSecond Selfoccupied HouseReal EstateProperty InvestmentReal EstateFeb 01, 2025
This initiative is part of a broader strategy to stimulate the real estate sector and provide substantial financial benefits to homeowners.
The provision allows individuals to claim tax benefits on the notional rental income from a second self-occupied house.
Previously, the tax laws required individuals to pay tax on the notional rental income, even if the house was not rented out.
This change is expected to reduce the tax burden on middle and upper-middle-class homeowners, making it more attractive to own a second property for personal use.
Vineet Nanda, Director Sales & Marketing at Krisumi Corp, welcomed the move, stating, 'This provision will significantly boost real estate investments, particularly in the residential segment.
It will encourage more people to invest in their second homes, knowing that they will not be penalized with a heavy tax burden.'
Frequently Asked Questions
What is the new tax relief announced in Budget 2025 for homeowners?
The new tax relief allows individuals to claim tax benefits on the notional rental income from a second self-occupied house, reducing the tax burden on homeowners.
How will this tax relief impact the real estate sector?
The tax relief is expected to boost the real estate market by increasing demand for second homes, driving property values, and encouraging more real estate investments.
Who will benefit the most from this provision?
Middle and upper-middle-class homeowners who own a second self-occupied house will benefit the most from this tax relief, as it will reduce their tax burden and make property ownership more attractive.
What are the potential concerns regarding the tax relief?
Critics are concerned about potential misuse of the provision, where individuals might use it as a loophole to avoid paying taxes on multiple properties. The government has proposed strict guidelines to address this issue.
Will this move have any impact on the housing finance sector?
Yes, the tax relief is expected to lead to an increase in home loan applications as more people consider investing in a second property, benefiting banks and financial institutions.
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