Union Budget 2025: Transformative Boost for Real Estate with SWAMIH Fund 2.0 and TDS Revisions

The Union Budget 2025 introduces a TDS hike on rentals up to Rs 6 lakh and SWAMIH Fund 2.0 to boost real estate. According to Niranjan Hiranandani, these measures will enhance rental investments and revive stalled projects, driving growth and addressing challenges in India’s housing sector.

The Union Budget 2025, unveiled by Finance Minister Nirmala Sitharaman, has been hailed as a game-changer for India's real estate and infrastructure sectors. The proposed increase in Tax Deducted at Source (TDS) on rentals up to Rs 6 lakh aims to invigorate rental investments, according to Niranjan Hiranandani, Chairman of the National Real Estate Development Council (NAREDCO) and the Hiranandani Group. In a discussion with ANI, Hiranandani emphasized the transformative nature of the budget for promoting rental market growth.

The budget also introduces SWAMIH Fund 2.0, a key highlight with a Rs 15,000 crore contribution from the central government, supplemented by banks and financial institutions. The first phase of the SWAMIH Fund had successfully completed numerous stalled housing projects, greatly benefiting homebuyers. The second phase seeks to extend this success, ensuring more delayed projects reach completion and providing a significant boost to the real estate sector. Hiranandani expressed optimism about the new fund's potential, highlighting the substantial previous accomplishments under SWAMIH Fund One.

Additionally, the revised TDS on rental income, now at a threshold of Rs 6 lakh annually, is anticipated to drive investment and enhance tax compliance by landlords and tenants. Formerly, this threshold was Rs 2.4 lakh per annum. Such changes are likely to bring better regulation and transparency to the rental market. Further incentives for purchasing a second flat aim to spur real estate investments by making it easier for individuals to invest in multiple properties. This initiative is expected to stimulate housing demand, especially for those relocating for work, thereby fostering growth in the sector. Industry leaders remain positive about these strategic funding initiatives and tax reforms for the future of real estate and infrastructure in India.

(With inputs from agencies.)