- Experts urge a tax deduction for maintenance charges on rental properties.
- ICAI recommends taxing actual rent, not expected rent, to reflect real income.
- First-time homebuyers may benefit from targeted tax incentives and higher interest deductions.
With Budget 2025 on the horizon, tax experts have called for changes that could benefit property owners, particularly by allowing maintenance charges paid to housing societies to be deducted when calculating rental income.
This move would provide financial relief to those who are already incurring regular costs for maintaining common areas in residential societies.
Will Budget 2025 Bring Tax Reforms for Homeowners and Renters?
In another significant development, the Institute of Chartered Accountants of India (ICAI) is advocating for tax reforms that focus on actual rental income, rather than theoretical expected rents. This proposal would ensure that property owners are taxed based on the income they genuinely receive from their properties, which would be a fairer system, particularly in cases of lower-than-expected rental returns.
The Budget 2025 also holds potential to reshape housing affordability, particularly for first-time homebuyers. Experts are suggesting that targeted tax incentives, such as reducing stamp duties or increasing tax deductions for home loan interest, could make a significant difference for those looking to buy their first home.
Experts from Barclays have highlighted that a reduction in income tax rates across different slabs could be an essential part of Budget 2025. Lower tax rates could boost disposable income, fostering consumption and investment in the economy. Alongside this, changes in customs duties and other fiscal measures could help strengthen economic growth moving forward.
In conclusion, the Budget 2025 is expected to address critical concerns for property owners and first-time buyers, with tax reforms that could make property ownership more affordable and rental income taxation more equitable.
“Tax reforms in Budget 2025 could reshape the landscape for property owners and first-time homebuyers, creating a more favorable environment for growth.”
