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.
Related News Articles
IAS Officer's Mother Arrested in Pune Over Land Dispute, Remanded to Police Custody
A Pune court has remanded the mother of an IAS probationer to police custody over a land dispute, while her husband and daughter face separate allegations of misconduct and disproportionate assets.
Hyundai Brings Hope to Maharashtra with Project H2OPE
Hyundai Motor India Foundation launches Project H2OPE in Gadchiroli, Maharashtra to address water scarcity issues
Airtel Clarifies: Tata and Bharti Groups in Talks for Mega DTH Merger
Bharti Airtel has clarified that the discussions with the Tata Group for a potential DTH merger are still in the early stages. The telco has also announced a partnership with Ericsson for 5G core technology, marking a significant step in its technological
South City Mall-Blackstone Deal Speculative, No Urgency to Finalize: Consortium Partner
A consortium partner has revealed that the South City Mall-Blackstone deal is currently speculative and that there is no immediate urgency to finalize the sale. The consortium consists of 75-80 shareholders from various real estate companies, and they are
Nationwide Bank Strike: Employee Demands and Industry Impact
A nationwide bank strike is set to commence as key employee demands remain unmet, potentially disrupting financial services across the country. The United Forum of Bank Unions (UFBU) has confirmed the strike, citing unresolved issues with pay, working con
India's Retail Revolution: 70% of Upcoming Malls to Be Grade A by 2026
India's retail real estate sector is poised for a significant upgrade, with over 70% of the 12.3 million square feet of new mall space expected to be Grade A by 2026. This transformation is set to revolutionize the shopping experience for consumers.