The FM proposed to change the tax structure in the new regime by reducing the number of slabs to five and raising the tax exemption limit to ₹3 lakh, as well as lowering the surcharge rate from 37% to 25% on the highest tax rate in the nation of 42.74%. The FM also proposed to increase the tax rebate limit to ₹7 lakh from ₹5 lakh under the new tax regime. However, for homebuyers income tax deduction of up to ₹1.50 lakhs on the repayment of housing loans (principal + interest) under Sec 80C is available under the old tax regime and switching to the new tax regime will break off the 80C benefit for them, amid the fact that there is no relief from higher home loan rates amid skyrocketing inflation and rising EMIs.

Archit Gupta, Founder and CEO, Clear said “From the perspective of tax savings the new tax regime is not going to benefit the home buyers, as there is no benefit given under section 24(b) which allows the home buyers to deduct the interest payment of home loan from their total income upto ₹2,00,000. Further no deduction under section 80C is allowed which enables the taxpayers to deduct principal repayment of the home loan. Further section 80EEA is not available as well which allows additional deduction of ₹1,50,000 in respect of interest of home loan subject to fulfilment of certain conditions."

Dhaval Ajmera- Director at Ajmera Realty Infra India Ltd said “The new tax regime will help many homebuyers who are seeking a good amount of liquidity. Additionally, this is going to have a significant impact on the affordable housing segment and the price brackets of flats below 1 crore. At the same time, with this liquidity coming in place, it will only help or boost demand that is currently being witnessed across the country. These days, people are considering real estate as an alternative asset class to park their investments. Hence, tax benefits or liquidity flow of such nature will boost the current increase in demand."

Gopal Bohra, Partner, N.A. Shah Associates said "There is no benefit for homebuyer who is opting for new tax regime, under this scheme loss on account of interest on self- occupied house property is not allowed as set off against any other income and similarly no benefit of repayment of housing loan is available as deduction under section 80C."

S. Vasudevan, Executive Partner Lakshmikumaran and Sridharan Attorneys said "The new tax regime is not beneficial in any way to homebuyers as compared to the old tax regime. Deductions towards repayment of principal and payment of interest towards housing loans under section 80C and 80EE/ *80EEA* are available only under the old regime. Also, deduction towards interest paid on loans for self-occupied property under section 24(b) can be claimed only under the old regime. As these deductions are not available under the new regime, homebuyers may decide to continue under the old regime to avail these benefits."

Neelabh Sanyal, COO, Kuvera said “The new tax regime is designed to be simple and leaves more disposable income in the hand of tax payers. However, the deductions targeted towards home purchases are not available in the new regime. This is likely to reduce investor demand for real estate, thereby making homes cheaper. So while the New Tax regime doesn't offer any deductions that encouraged home buying, indirectly helping relatively inelastic consumption demand."

CA Vitesh Waikar, Sr. Tax Consultant at Fintoo said “Though the government has tried to make the new tax regime extremely attractive for salaried individuals by increasing the limit of non-taxable income, but apart from it if the same individual is looking to claim any deduction of interest and principal amount paid for a home loan under the new tax regime, then unfortunately, it won’t be possible as the new tax regime does not offer any kind of deductions or exemptions for home loans as of now."