Finance Minister Nirmala Sitharaman has given great relief to those who have two houses on 1 February. He has now given a big relief to the taxpayer in the case of another house. Earlier there was relief from tax at only one house. This means that a house had an exgamption from tax. The second house was taxed according to the market value. Let’s know about this in detail.
Big relief to taxpayers with two houses
Finance Minister Nirmala Sitharaman said on 1 February that now the value of two houses will be considered zero in terms of tax. This will give a lot of relief to such people who have two houses. The government has announced this to provide relief to taxpayers. There are many people in the middle class who have two houses. Now such people will be able to sleep peacefully. They will not have to worry about tax at another house.
Tax will not have to be calculated when two houses
Due to the change in tax rules on house property, taxpayers with two houses will not have to calculate tax on house property in filing income tax returns. The reason for this is that he will be able to claim zero value of two houses. If a taxpayer has three houses, then he will have to calculate tax on the value of the third house.
New rule will be implemented from April 1, 2025
This announcement of the Finance Minister on 1 February will come into effect from April 1, 2025. This means that if a person lives in his house or does not use it for some reason, then the annual value of the property will be considered zero. This can be easily understood by an example. Suppose there is someone who has two houses. He uses a house for his living and the other house is empty, even if he can claim both houses that he himself uses them. In this way, he will not have to pay any tax at another house.
Also read: Budget 2025 Live
What will happen if the taxpayer has three houses?
If a person has three houses, he can consider a two house for the use of himself. In such a situation, he will have to calculate tax on only the annual rental value of the third house. Tax experts say that this change in the rule on house property will provide relief to a large number of taxpayers. The burden of tax compliance on them will be reduced.