Taxpayers can now claim the annual value of two self-occupied properties as "nil" without any condition.
Budget 2025 has proposed an amendment to sub-section 2 of Section 23 of Income Tax Act, which relates to determination of annual value of house properties. "Sub-section (2) of the said section provides that where house property is in the occupation of the owner for the purposes of his residence or owner cannot actually occupy it due to his employment, business or profession carried on at any other place, in such cases, the annual value of such house property shall be taken to be nil," it said.
Further, sub-section (4) provides that provisions of sub-section (2) will be applicable in respect of two house properties only, which are to be specified by the owner.
"With a view to simplifying the provisions, it is proposed to amend sub-section (2) so as to provide that the annual value of the property consisting of a house or any part thereof shall be taken as nil, if the owner occupies it for his own residence or cannot actually occupy it due to any reason," the Budget stated.
The provision of sub-section (4), which allows this benefit only in respect of two of such houses, will continue to apply as earlier.
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.
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