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Budget 2025 Impact on Homebuyers & Affordable Housing

The Union Budget 2025 introduces several reforms aimed at bolstering the real estate sector and facilitating homeownership, especially within the affordable housing segment. Enhanced Disposable Income: A significant highlight is the revision of income tax slabs under the new regime. Taxpayers with annual earnings up to ₹12 lakh are now exempt from personal income tax, potentially increasing monthly savings by approximately ₹10,000. This boost in disposable income is anticipated to improve loan repayment capacities and make homeownership more attainable. Tax Relief on Multiple Properties: The budget permits homeowners to designate two properties as self-occupied, allowing them to claim a nil annual value for both. This change eliminates tax liabilities on notional rent for the second property, encouraging investment in additional homes. Increased TDS Threshold on Rental Income: The threshold for Tax Deducted at Source (TDS) on rental income has been raised from ₹2.4 lakh to ₹6 lakh per annum. This adjustment reduces compliance burdens for tenants and enhances cash flow for landlords, benefiting the rental housing market. Support for Stalled Housing Projects: To address delayed housing projects, the government has introduced the Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund 2.0, allocating ₹15,000 crore. This initiative aims to expedite the completion of approximately 1 lakh stalled housing units, providing relief to affected homebuyers. These measures collectively aim to stimulate growth in the real estate sector, making homeownership more accessible and affordable for a broader segment of the population.