The New Budget Just Killed Tax Benefits for Home Buyers – No One’s Talking About It!

Hello all, did you notice this? Tax savings were always a big factor in home buying decisions. But with the new budget, unless you can show ₹8 lakhs in deductions, the new tax regime will almost always make sense—regardless of your salary.

The deduction for home loan interest is capped at ₹2 lakh. There's no way I am reaching ₹6 lakh in other deductions. That means there’s essentially no tax incentive to buy a house anymore, not a single rupee! I see so many posts about Budget 2025, but this is huge, and barely anyone is discussing it.

Assuming 80C is covered by PF, insurance, and other essentials, there’s no tax relief for stamp duty, principal repayment, or anything else related to home buying. And now, even the interest deduction is irrelevant.

Am I missing something, or is this a major shift in Indian real estate?

Instead of paying EMI and living in my own flat, it makes more sense to rent the flat opposite, pay rent (and claim HRA), and lease out my flat to earn rental income (while claiming a 30% standard deduction). Meanwhile, my wife and I can benefit from the ₹2 lakh + ₹2 lakh rebate on the paid home loan interest.