Finance Minister Nirmala Sitharaman’s Budget 2025-26: Major Relief for Property Owners and Taxpayers
In the Union Budget for 2025-26, Finance Minister Nirmala Sitharaman has introduced several groundbreaking changes aimed at providing significant tax relief for taxpayers and property owners. The new budget promises to streamline taxation, particularly in terms of rental income and tax benefits for multiple homes. These reforms are set to simplify compliance procedures and offer substantial financial relief to small taxpayers.
Increase in TDS Exemption Limit for Rental Income
One of the standout announcements from the Budget 2025-26 is the increase in the TDS (Tax Deducted at Source) exemption limit for rental income. Under the new proposal, the TDS exemption limit has been increased from ₹2.4 lakh to ₹6 lakh. This change is particularly beneficial for small landlords who have been struggling with the cumbersome TDS compliance process.
What Does This Change Mean for Small Landlords?
For property owners who earn rental income, the higher exemption threshold means that they will now be required to deduct TDS only on rental income exceeding ₹6 lakh. This adjustment reduces the tax burden on small landlords, as it simplifies the compliance requirements and allows them to retain more of their income without having to go through the tedious tax filing process.
With this change, small landlords can now focus on their core business operations without being bogged down by complex taxation rules. Additionally, this step is expected to promote the formalization of rental income within the real estate sector, ensuring that both landlords and tenants benefit from a more transparent system.
Tax Relief for Homeowners with Two Properties
Another significant change introduced in this Budget is the relaxation of tax benefits for individuals owning two properties. Traditionally, tax exemptions on home loans were only available for the primary residence. However, with the new proposal, individuals who own two properties can now claim tax benefits on both, provided they live in both properties.
