Good news for Indian homeowners! The upcoming Budget 2025 is bringing a significant tax relief, allowing individuals to claim zero tax on the annual value of two self-occupied properties. This amendment to the Income Tax Act removes the previous restriction of only one property qualifying for this benefit. Starting April 1, 2025, homeowners can effectively declare the annual value of two of their own homes as "nil" for tax purposes, simplifying their tax burden and potentially leading to substantial savings. This change is expected to encourage homeownership and provide much-needed relief to families. The amendment applies to assessment year 2025-26 onwards.

A Roof Over Your Head, and a Break on Your Taxes: Budget 2025 Offers Double Relief for Homeowners. The Indian government is poised to offer a significant boost to homeowners with a proposed change in the Income Tax Act, set to take effect from April 1, 2025. As part of the Budget 2025 announcements, homeowners will be able to declare the annual value of two self-occupied properties as "nil" for tax purposes. This doubles the relief previously offered, where only one self-occupied property qualified for this tax benefit. This amendment effectively removes the tax burden on the notional rental income of a second home, providing substantial financial relief to families, particularly those with multiple properties or those who own homes in different locations. The change is expected to not only ease the tax burden on homeowners but also potentially incentivize homeownership, further stimulating the real estate market. This move reflects the government's focus on making homeownership more accessible and affordable. The new provision will apply from assessment year 2025-26 onwards, bringing welcome respite to homeowners across the country.