Big Incentives for Property Owners

Zero tax on two self-occupied houses, TDS threshold on rent increased by 150%

- RAGHAVENDRA KAMATH

Houseowners have received a significant boost from the Budget as they can now claim nil tax on two self-occupied properties, instead of one earlier. With the finance minister proposing to provide the tax relief without conditions, and increasing the threshold limit of tax deducted at source (TDS) on house rent from ₹2.4 lakh to ₹6 lakh—a whopping 150% increase—the inclination to own properties may grow manifold, said industry experts.

While the first measure is expected to encourage taxpayers to purchase more than one house, increasing the limit for TDS on rent is expected to reduce the tax compliance burden.

Currently, taxpayers can claim the annual value of self-occupied properties as nil only on fulfillment of certain conditions. "Considering the difficulties faced by taxpayers, it is proposed to allow the benefit of two such self-occupied properties without any condition," Sitharaman said.