The Union Budget 2025 introduces several measures impacting homebuyers and the real estate sector in India.
Tax Relief Enhances Disposable Income
The government has increased the income tax exemption limit to ₹12 lakh under the new regime, aiming to boost disposable income among middle-class citizens. This initiative is anticipated to enhance consumer spending and stimulate demand in the housing market.
Policy Changes Favor Homeownership
Homeowners can now claim a nil annual value for two self-occupied properties, up from the previous allowance of one. This adjustment removes the tax burden associated with notional rental income on a second home, potentially encouraging investments in additional residential properties.
Support for Stalled Housing Projects
The budget allocates an additional ₹15,000 crore to the SWAMIH Fund 2, targeting the completion of 1 lakh delayed housing units. This move aims to provide relief to homebuyers affected by stalled projects and to increase the availability of ready-to-move-in homes.
Increased Threshold for TDS on Rent
The threshold for Tax Deducted at Source (TDS) on rental income has been raised from ₹2.4 lakh to ₹6 lakh per annum. This change is expected to ease compliance requirements for small taxpayers and landlords, thereby benefiting the rental housing market.
Urban Infrastructure Development
The establishment of a ₹1 lakh crore Urban Challenge Fund is set to enhance urban infrastructure. This initiative aims to improve city planning and municipal services, which could positively influence the real estate sector by making urban areas more attractive for investment.
Industry Perspectives
Real estate experts view these budgetary measures as steps toward strengthening household purchasing power and promoting homeownership. The focus on tax relief and infrastructure development is expected to have a favorable impact on both primary and secondary housing markets.
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By Proptechbuzz
By Ravi Kumar
