Claim for two self occupied properties

According to income tax rules, if you own more than one residential property, only one of those can be considered to be self-occupied. The others should either be let out or, even if they are not actually rented out, they will be deemed to be properties that have been let out.

As you are free to specify any one of the properties as self-occupied, before making this choice calculate the annual value of each property and then choose the one that has the highest annual value as self occupied.  You have the freedom to choose any property as deemed let out or self occupied. This can also be changed year on year. For year ended MArch 2020 it will be 2 months deemed let out.  For next year it will be full year.

1. From F.Y. 2019-20, you can claim two properties as self occupied subject to interest restrictions on second self occupied property.

2. Show property at Thane as deemed let out only for F.Y. 2019-20 for two months. Next year compare the annual value of the property and select the property having minimum value.

If there is home loan on the properties then it may be better if you consider one property as self occupied.

We may discuss the issues in detail.

Dear Sir,

Hope you are doing well !!

1. Prior to FY 2019-20, if more than one self-occupied house property is owned by the taxpayer, only one is considered and treated as a self-occupied property and the remaining are assumed to be let out. The choice of which property to choose as self-occupied is up to the taxpayer.

For the FY 2019-20 and onwards, the benefit of considering the houses as self-occupied has been extended to 2 houses. Now, a homeowner can claim his 2 properties as self-occupied and remaining house as let out for Income tax purposes.

2.We need further details for the same.

It is advisable to take a phone consultation for detailed discussion.

Hi,

For claiming two house properties as self occupied, both the house property should satisfy any one of the below conditions:

1.If it is occupied by the owner for his own residence; or

2.If it can't actually be occupied by him owing to employment or business at any other place, and he resides at that other place in a rented house/house not belonging to him.

Yes you can claim two properties as self occupied as per act but the language and condition for self occupied are a bit vague in the act.

You can show any of the three property as deemed let out and for whole year.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement. You can even book phone consultation for further personal assistance.

Thank you.