Tax exemption for homeowners!

Union Budget 2025 brings great news for homeowners, with increased tax exemptions for self-occupied homes and higher limits for rental income-related TDS. Now, homeowners can claim exemptions on two self-occupied homes, along with significant relief for small-scale property owners. This budget aims to boost financial benefits for middle-class taxpayers and landowners.

Tax exemption for homeowners!

In the Union Budget 2025 announced by Union Finance Minister Nirmala Sitharaman, homeowners received good news. According to the new tax benefits, tax exemptions for self-occupied homes have been increased, providing relief to homeowners. Previously, tax exemption was available only for a single self-occupied home. However, under the latest budget, tax exemption can now be claimed for two self-occupied homes as well. These benefits will be implemented through an amendment to Section 23(2) of the Income Tax Act.

The annual value of homes occupied by the owner will be considered as "nil," meaning there will be no income tax levied on them. The government clarified that this change is specifically aimed at those who live in their own homes without renting them out. Furthermore, the limit for tax deductions at source (TDS) related to rental income has also been increased. Earlier, TDS had to be paid on annual rent of ₹2.4 lakh. According to Budget 2025, this limit has been raised to ₹6 lakh. This means that landowners receiving rent up to ₹6 lakh will be exempt from TDS. Additionally, the monthly TDS limit has been increased from ₹24,000 to ₹50,000. This will provide financial relief to small landowners and tenants.

The decisions taken in the Union Budget 2025 have brought significant relief to homeowners, landowners, and small taxpayers. Particularly, the extension of exemptions to two self-occupied homes and the increase in the TDS limit will benefit millions of homeowners. This is expected to provide financial gains to middle-class and small-scale property owners. For more details and updates on the budget, visit Vaartha.

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