Budget 2025: Tax Benefits Now Available on Two Self-Occupied Homes

                In a significant move announced on February 1, Finance Minister Nirmala Sitharaman relaxed the conditions for tax relief on self-occupied properties in the Union Budget 2025. 
Taxpayers can now claim tax benefits for two self-occupied houses, a major change from the previous rule that allowed relief for only one property.
“Presently tax-payers can claim the annual value of self-occupied properties as nil only on the fulfilment of certain conditions. Considering the difficulties faced by taxpayers, it is proposed 
to allow the benefit of two such self-occupied properties without any condition,” the Finance Minister announced in her budget speech.
 “This reform significantly eases the tax burden for individuals who own and live in multiple properties, offering financial flexibility and promoting homeownership. By acknowledging the 
diverse housing needs of families, this decision not only provides greater tax relief but also encourages real estate investment. The move aligns with the government’s broader focus on 
financial empowerment and ease of living, strengthening the middle class while simplifying the tax structure,” said Adhil Shetty, 
This is a positive move also for residential real estate investment. The simplified TDS on rent decreases the compliance burden and enhances liquidity for landlords and will positively 
impact the rental housing market, especially in metro cities. Previously, homeowners could claim only one self-occupied property as tax-free; now, they can claim two – thereby removing 
taxation on notional rental income from a second home.
“This step minimizes tax pressures, promotes homeownership, and facilitates real estate investment, especially in second homes and Tier 2 and 3 cities. Middle-class homebuyers, 
landlords, and investors can now benefit from reduced tax liabilities, better affordability, and less compliance hassles. By simplifying financial constraints and tax rules, the budget has 
made property ownership and rental housing more accessible. This gives a significant fillip to the real estate sector, specifically to and housing demand,” said Anuj Puri, Chairman, 
ANAROCK Group.


Source : Financial Express