Previously, only one property could be valued as Nil, meaning it was exempt from tax, while the second property was taxed based on its market value.
The new proposal allows both properties to be valued as Nil, providing tax relief to middle-class homeowners and reducing their tax burden. The move aims to ease the financial strain on taxpayers who own multiple self-occupied homes.
Additionally, the FM also said that the annual limit of ₹2.40 lakh for TDS on rent is being increased to ₹6 lakh. “This will reduce, this will reduce the number of transactions liable to TDS, thus benefiting small tax payers receiving small payments”, she said.
Finance Minister Nirmala Sitharaman announced significant tax benefits in Budget 2025. The nil tax slab has been raised from ₹7 lakh to ₹12 lakh, providing major relief to taxpayers.
Earlier, Finance Minister Nirmala Sitharaman on Saturday (February 1) presented her eighth consecutive budget amid sloganeering from opposition.
Sitharaman said the Budget aims to implement reforms across six domains – Taxation, Power, Urban Development, Mining, Financial Sector and Regulatory reforms.
Presenting the 14th consecutive Budget under the Narendra Modi government since 2014, Sitharaman said, “Together we embark on journey to unlock our potential for greater prosperity.” She asserted that the Indian economy is fastest-growing among all developing economies.
First Published: Feb 1, 2025 12:32 PM IST
