India, Feb. 1 -- To boost disposable income and increase affordability for middle-class homebuyers, the Finance Minister announced on February 1 that there would be no income tax payable up to Rs.12 lakh - i.e., up to Rs.12.75 lakh including standard deductions - under the new regime. This is expected to enhance spending power and drive housing demand and investments in the real estate sector, say real estate experts.

"The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment," Finance Minister Nirmala Sitharaman said in her Budget speech on February 1.

Reacting to the Budget 2025 proposals, Arvind Nandan, Managing Director, Resea...