New Delhi, Feb. 1 -- In a significant move, the Union Budget 2025-26, unveiled by finance minister Nirmala Sitharaman, has proposed to lift restrictions on claiming two properties as self-occupied (SOP), streamlining the process for taxpayers.

The budget memorandum highlights an amendment to Section 23(2) of the Income Tax Act, which previously allowed owners to claim a property's annual value as nil only if they occupied it for personal residence or could not occupy it due to employment, business, or profession elsewhere. This provision often led to confusion, with taxpayers questioned by the IT department about whether their reasons for not occupying the property were valid.

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