The Union Budget 2025 has emerged as a game-changer for homebuyers, offering multiple tax benefits and incentives. From easing taxation policies to boosting affordable housing, the government’s initiatives are set to have a lasting impact on the real estate sector and homebuyers.
Be it tax reforms under the new tax regime or exempting second property from tax for notional rental income are some of the key announcements made by Finance Minister Nirmala Sitharaman on Saturday. Here is all homebuyers are going to get from Budget 2025:
Income Tax Reforms: More Savings, More Investments
One of the most significant takeaways from the budget is the increase in the tax rebate under the new tax regime. Individuals earning up to Rs 12 lakh per annum (Rs 12.75 lakh for salaried employees) will pay no personal income tax.
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Adhil Shetty, CEO of Bankbazaar.com, says, “This move significantly enhances disposable income, allowing individuals to save more for housing investments. The simplified tax structure ensures that the middle class has more liquidity, leading to increased household consumption, savings and investments in equity and real estate.”
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With the revised income tax slabs and reduced tax rates, a rough estimate suggests that taxpayers could save up to Rs 10,000 per month, depending on their income bracket. “This significant boost in savings will enable individuals to better manage existing loans and enhance their loan eligibility, making homeownership and other large investments more accessible. For example, in the case of a home loan, assuming an interest rate of 9% and a tenure of 20 years, a person’s loan eligibility could increase by Rs 10-11 lakh. This is because the additional Rs 10,000 in disposable income can be utilized for servicing EMIs, making homeownership more accessible,” says Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution Pvt Ltd.
The ripple effect of increased disposable income will be felt across the retail loan industry, as more individuals will have the financial confidence to take on new loans,
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