The Finance Minister Piyush Goyal announced that home buyers will not have to pay tax on notional rent applicable on the second house if an individual has more than one house. Earlier, if you had two houses and if your second house was occupied by your family or parents, then you will have to pay tax on notional rent on the second house despite not earning any actual rent income from that house. This is beneficial for individuals who migrate for career opportunities or who are maintaining two houses due to family reasons.

Piyush Goyal also increased the threshold limit for TDS on rental income from Rs 1.8 lakh to Rs 2.4 lakh which is big cheer for home owner earning rental income from other properties.

For investors investing in real estate, there is some good news for them as well. Under Section 54, if an individual had bought a new residential property from the proceeds earned from sale of another residential property, then it was exempted from capital gains tax. This rule was applicable to single new residential property. The Finance Minister has now proposed to exempt capital gains tax on two residential properties instead of one. It is applicable for an amount upto Rs 2 crore.