Union Budget 2025 reaction From Mr. Kaushal Agarwal, Co-Founder & Director of The Guardians Real Estate Advisory

New Delhi, February 01, 2025: The Union Budget 2025 brings a significant relief for homeowners by allowing tax benefits on two self-occupied properties instead of just one. Earlier, individuals had to pay tax on the notional rental income of a second home, adding to their financial burden. This change simplifies tax compliance and recognises the need for housing flexibility, especially for families with homes in different cities for work, investment, or personal reasons.

By reducing tax liabilities, this move is expected to boost homeownership and drive real estate demand, particularly in Tier 2 and Tier 3 cities. The budget also simplifies TDS rules on rental income, reducing compliance hassles for landlords and improving cash flow in the rental housing market.

Beyond tax relief, the government’s ₹1 lakh crore Urban Challenge Fund aims to transform cities, while the SWAMIH Fund’s expansion will fast-track the completion of pending housing projects, benefiting middle-class families. The National Geospatial Mission will enhance urban planning, and raising the TDS threshold on rent to ₹6 lakh eases compliance for small landlords. Additionally, the increased tax exemption up to ₹12 lakh provides aspiring homebuyers with greater financial flexibility.

These reforms make homeownership more accessible, encourage real estate investment, and strengthen India’s urban infrastructure.

Corporate Comm India (CCI Newswire)