Income tax changes benefit homebuyers starting April 1

The Indian government has announced changes to income tax laws that will affect homebuyers starting on April 1, 2025. These changes were introduced in Budget 2025 and aim to ease the tax burden on homeowners. One significant change is that homeowners will be able to treat the annual value of a second self-occupied property as zero. This means they will not have to pay extra income tax for owning two homes. Previously, if someone had to leave a home for job reasons, it could lead to additional tax charges. This update is seen as a relief for those looking to buy more than one property. Another important change is regarding tax deductions for rental income. The threshold for when tax must be deducted at source for rented properties will be raised from ₹2,40,000 per year to ₹50,000 per month. This means that if someone rents out a property for less than this amount, they won't have to pay tax on it. This change is also set to take effect on April 1, 2025. Additionally, the budget proposes that individuals with an income of up to ₹12 lakh will not have to pay any income tax. For example, a person earning ₹12 lakh could save ₹80,000 in taxes, which would allow them to afford a higher monthly mortgage payment and buy a more expensive home. Furthermore, the government introduced the SWAMIH Fund-2, aimed at finishing distressed housing projects. This fund intends to complete an additional 40,000 housing units in 2025, helping homebuyers who are currently paying both rent and mortgage on incomplete properties. These changes are designed to support the real estate market and make homeownership more accessible.