12 Kolkata: A higher disposable income among the middle class, with income up to Rs 24 lakh per annum, is expected to increase housing affordability and trigger growth in sales of affordable housing, which saw a decline in the past couple of years.
Those who can afford a second home but are shying away from purchasing one may now be tempted to make the investment with the introduction of nil valuation for two self-occupied properties, instead of one.Budget 2025 UpdatesNew vs old income tax regime after Budget 2025: Post income tax slab changes, which tax regime is better for salaried middle class taxpayers?Latest income tax slabs FY 2025-26Income Tax Slabs Budget 2025 Live Updates: No income tax up to Rs 12 lakh incomePreviously, homeowners were taxed on notional rental income from a second home, but now they can claim tax exemptions on both properties. This is expected to encourage second-home investments.
Videos03:48Budget 2025 Cheaper & Costlier: Mobile Phones, EV Batteries, Leather Items & Medicines6 hours ago01:15:00Budget 2025 Highlights: Major Tax Changes, FDI Raised To 100% In Insurance | FM's Full Speech7 hours ago05:39Big Budget 2025 Bonanza For Middle Class; New Bill & Slabs, No Tax Till ₹12 Lakh Income | Watch8 hours ago03:03Budget 2025: FM Nirmala Bolsters India's Nuclear Energy Sector; 5 Reactors In Just 8 Years | Watch9 hours ago02:20Budget 2025: FM Nirmala's Big Healthcare Announcements: Daycare Cancer Centres & More10 hours ago58:58President Droupadi Murmu's Mega Address To Joint Parliament Session | Budget 20251 day ago01:13Budget Session 2025: FM Nirmala Sitharaman Tables Economic Survey | Watch1 day ago12:02Budget Session 2025: PM Narendra Modi Takes A Dig At ‘Shararati’ Opposition1 day ago03:21'Don't Give Me Gyaan': Blistering Faceoff Between Akhilesh Yadav & Anurag Thakur In Lok Sabha186 days ago06:57Rahul Gandhi Vs Om Birla: Five Big Moments Of Fiery Faceoff & Jibes | Watch186 days ago123456The Budget also offered hope to those who have purchased units in projects that are stuck due to funds crunch faced by developers. Builders can now dip into the Rs 15,000 crore SWAMIH Fund 2 to accelerate stalled housing projects by ensuring liquidity in the sector. Projects in Bengal were unable to take advantage of the SWAMIH Fund 1 as they were not registered under RERA earlier.
Real estate consultancy firm JLL India chief economist and head of research Samantak Das said the removal of all conditions for holding two self-occupied properties without any tax implications will spur fresh investments in the residential market. "This announcement is further supported by the increased threshold for TDS exemption on rental income to Rs 6 lakh," he felt.
Developers in Kolkata pinned their hopes on the exemption of I-T payable for income up to Rs 12 lakh, coupled with increasing the TDS threshold on rent from Rs 2.4 lakh to Rs 6 lakh, to significantly enhance disposable income and boost housing demand and overall consumption.
Sushil Mohta, president of CREDAI West Bengal, felt residential and IT projects in New Town, Rajarhat, and Joka that are held up due to funds crunch will now be able to complete the project by reaching out to SWAMIH Fund 2. "This could benefit nearly 1,000 home-buyers," he said.
CREDAI Bengal president Siddharth Pansari expressed disappointment that the Budget did not announce measures to boost demand in affordable housing sector. "We had made representation for a higher threshold for home loan interest exemptions which has remained stagnant for a long time and a revision in the definition of affordable housing based on a minimum dwelling unit size instead of a uniform Rs 45 lakh value across the country. These steps could have provided an added stimulus to the market and improved housing affordability," he said.
Also, the allocation of Rs 1 lakh crore under the Urban Challenge Fund can promote better urban planning, paving the way for infrastructure-driven real estate growth. However, developers said it would depend on the conditions attached to the proposal and whether the state would find the conditions feasible.
Get real-time updates on Budget 2025 and Income Tax Slabs on Times of India. Check out the latest income tax slabs FY 2025-26.