Property Tax: You can now claim Nil Annual Value for your two self-occupied properties. This means tax compliance will be easier and you will have more money in your pocket.
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Budget 2025: If you also have more than one property and till now you have been paying tax on it to the government, then there is good news for you. This year’s budget can bring a smile on your face. Now you can claim Nil Annual Value for your two self-occupied properties. This means that tax compliance will be easier and you will save more money in your pocket.
Earlier, if someone had a second property, he had to pay tax, even if he did not rent it out. This tax was decided on the basis of the amount of potential rent. If someone had to live in another city due to job, he had to prove that his first property was self-occupied, so that he could get tax relief.
Exemption given in this year’s budget
At the same time, these conditions have been abolished in this year’s general budget. According to Ravi Shankar Singh, MD, Residential Transaction Services, Colliers India, “Earlier taxpayers had to prove that their second property was vacant due to work or business reasons. But now by removing these conditions, tax related complexities have reduced.”
How much tax will be saved?
ET quoted Delhi-based chartered accountant Manoj Pahwa as saying that if someone is not living in his property, he will now get a lot of benefit. Now there will be no need to provide proof of living at another place in connection with work. This is a relief especially for those professionals who are working in different cities.”
How much will taxpayers benefit?
Delhi-based legal professional Abhijeet Upadhyay used to pay around Rs 10,000 tax every month on his vacant house in Gurugram. Now he happily says, “Now this money will remain in my pocket. The benefits of this step are not only financial, but due to this parents will prefer to buy a house in advance for their children.”
For some people, this saving is even more. Chartered accountant Sachin Garg says, “Earlier I used to pay Rs 65,520 annually as tax on estimated rental income. Now this change will help me save a lot of money.” Mukul Mathur from Noida says, “The estimated income from my second property was around Rs 9 lakh, on which I will no longer have to pay tax. This will help me save around Rs 1.8 lakh.”
Real estate sector will also benefit
This change can prove to be good not only for your pocket but also for the real estate market. According to experts, this reform will promote investment in residential real estate. Anuj Puri, chairman of ANAROCK Group, says, “This step will promote home ownership and investment in primary and secondary housing market.”
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