Big relief to landlords and tenants, TDS limit increased in the budget

This change will impact both tenants and landlords

In recent years, rental prices have surged, particularly in major cities. The previous TDS exemption limit of Rs 2.4 lakh was inadequate, leading to calls for an increase. Tax experts believe this new measure will be advantageous for both parties involved.

How will this benefit tenants and landlords?

Tax experts indicate that the TDS rule on rent affects both tenants and landlords, regardless of whether the property is a home, office, shop, or other types. Raising the TDS exemption limit from Rs 2.4 lakh to Rs 6 lakh will lessen the necessity for TDS deductions.

This adjustment will particularly help landlords who receive less than Rs 6 lakh in rent annually, as tenants will no longer need to deduct TDS on that amount. Additionally, tenants will appreciate the elimination of the hassle associated with TDS deductions and deposits.

Tax Break for Homeowners with Two Properties

Finance Minister Nirmala Sitharaman has announced a significant tax break for individuals owning two homes in the latest budget. Now, homeowners won’t have to pay taxes on their second property, a change from the previous rule where only one house was eligible for tax relief, while the second was taxed based on its market value. Let’s dive into what this means and who stands to gain.

During her budget speech, Finance Minister Nirmala Sitharaman mentioned that the tax value for both homes will now be considered zero. This is great news for many, including those in the middle class who own two properties, as they can now breathe easy without the burden of a second home tax.

Real Estate Stocks Surge

The updates on TDS rules for house rent and the exemption for owning two homes have also positively impacted real estate stocks. Prestige Estates saw a 9.3% increase in shares, while Sobha’s shares rose by 4.6%. Other companies like Phoenix Mills, DLF, Oberoi Realty, and Godrej Properties also experienced a boost of 1 to 2%.