Union Budget 2025: No Tax on Income Up to ₹12 Lakh – What It Means for Home Buyers

The Union Budget 2025 has brought big relief for the middle class. Individuals earning up to ₹12 lakh per year will now pay zero income tax under the new regime.

At Avorix Realty, we’ve already received many calls from working professionals in Noida, Gurgaon, and Delhi NCR asking how this change affects their home buying plans. This is a significant shift, and it can make a real difference in your monthly cash flow and borrowing capacity.

1. New Income Tax Slabs Explained

The government has revised the tax structure significantly. The tax-free limit has jumped from ₹7 lakh to ₹12 lakh. For salaried individuals, this effectively becomes ₹12.75 lakh after the standard deduction.

Here’s how the new slabs look:

2. Who Benefits the Most?

Salaried professionals earning between ₹10 lakh to ₹18 lakh will see the biggest savings. A person earning ₹12 lakh annually can now save nearly ₹80,000–₹1 lakh in taxes every year. This extra money can go towards higher EMIs or a bigger down payment.

3. How This Affects Home Buyers in Delhi NCR

From our experience at Avorix Realty, this tax relief is likely to boost demand for homes in Noida, Greater Noida, and Gurgaon. More disposable income means people can afford better properties or bigger loans.

We’ve already noticed increased inquiries for 2BHK and 3BHK apartments in the ₹50 lakh to ₹1.2 crore range. Buyers now feel more confident about taking home loans.

4. Smart Tools to Plan Your Home Purchase

With extra savings in hand, it’s a good time to re-evaluate your budget. Use our EMI Calculator to see how much more you can afford now. You can also check long-term returns using the ROI Calculator.