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Homeowners get simpler tax rules, higher thresholds
Hindustan Times
|February 02, 2025
When Akhilesh Kumar learned about the new tax provisions for property owners in the budget announced by finance minister Nirmala Sitharaman on Saturday, he quickly calculated that he could save up to 1.5 lakh annually on his rental income.
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In her budget speech on Saturday, Sitharaman announced several measures aimed at easing the tax burden on property owners, including a significant increase in the threshold for Tax Deducted at Source (TDS) on rental income from 2.4 lakh to 6 lakh annually. This means TDS will now only apply when monthly rent exceeds ₹50,000, up from the previous 20,000 threshold. "House owners who earn up to 25 lakh from renting their property can save substantially from taxes and reinvest it," said Kumar, though he remains cautious about investment prospects given rising inflation.
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