The Union Budget 2025 has made several important announcements for home buyers, which will not only help them buy their home but will also promote their savings. From increasing tax exemption and completing the projects stuck on affordable housing, this budget has solved many concerns of home buyers.
Also, Finance Minister Nirmala Sitharaman said that now taxpayers can show the value of two self-oxuppy houses “zero” and there will be no need to fulfill the conditions like before. This rule will be applicable from 1 April 2025 and will affect the assessment year of 2025-26.
Previously, under the Income Tax Rules, the value of the house was considered “zero” in only certain situations. Now the new rules will not levy tax on the estimated income of rent on two houses, which will reduce tax and increase savings.
Learn what experts say
Ankit Jain, partner of Ved Jain and Associates, says that now this rule has been simplified. The person can declare any of his two properties self-oxuppy without giving any reason and no estimated fare will be added to them. This change will not only give relief to the middle class but will also be beneficial for high-net-world individuals, which have many properties. Many times these properties were not rented due to family needs, legal disputes or market situation, so this rule will give great savings and relief.
Middle class benefits of tax exemption
Basic Home Loan CEO Atul Monga says, “The income will increase the income of the middle class by increasing the boundary of personal tax exemption and standard deduction in the budget. This will provide additional savings to them, which will help in big investment like buying a house. ”
He further said, increasing the tax exemption limit in the budget will give financial flexibility to those who buy the house for the first time, so that they will be able to choose the right property according to their needs.
Focus on affordable housing and stuck projects
In the budget, an allocation of ₹ 79,000 crore has been made for the Pradhan Mantri Awas Yojana (PMAY), which is a relieved step for those who buy the house for the first time. At the same time, a provision of ₹ 15,000 crore has been made under the Swamih fund to complete the stuck housing projects.
According to Atul Monga, “These steps will bring back the projects that had been stuck for a long time due to financial problems. This will provide timely delivery to home buyers and will get relief from their home loan cumbersome EMI. Increasing investment in real estate will not only improve GDP, but will also make India’s way to become $ 5 trillion economy. ”
Impact of tax in short term investment
Aman Dhal, the founder of Supreme Finance, said, “The budget has given relief to the middle class, but a catch is that those whose income is less than ₹ 12.75 lakhs will get this benefit only when they avoid short-term capital gains. ”
He said that if a person invests in short-term stock and earns a capital gains, then his tax rate will be similar to those who have earned more. Its purpose is to protect people from short-term speech and motivate them towards long-term investment.
He added, “Some decline in the stock market may be seen in the beginning as investors will take time to understand the specifics of the budget. However, as there is intensive analysis, clarity will come in the market and better investment decisions will be taken. ”