Budget 2025 Introduces Tax Relief for Homeowners and Boosts Housing Sector

Key reforms include tax exemption for two self-occupied properties, higher rental income thresholds, and funding for stalled housing projects.

Homeowners can now claim tax relief on two self-occupied properties, eliminating the tax burden on notional rental income for a second home.
The threshold for Tax Deducted at Source (TDS) on rental income has been raised from ₹2.4 lakh to ₹6 lakh annually, simplifying compliance for landlords and tenants.
A new ₹15,000 crore allocation to the SWAMIH Fund 2.0 aims to address stalled housing projects, with 40,000 units expected to be completed in 2025.
The increase in the income tax exemption limit to ₹12 lakh under the new regime is expected to boost disposable income and encourage homeownership.
Industry leaders have welcomed the reforms but called for additional measures, such as greater focus on affordable housing and higher tax deductions for home loans.