I'm an NRI and I have two flats in India. One of them is occupied by my parents and the other one is vacant. Hence, I have no rental income from any of them. I have the following questions: 1) After checking on the Income Tax Website, I found that - "w.e.f. Assessment 2020-21, a person can claim two properties as self-occupied house properties subject to specific conditions.". What are these specific conditions? Could you please explain in details? 2) Would I face any issues if I claim both my flats as self-occupied?
Hi
You can claim two houses as SOPs; no issues. You fulfill the condition:
house property cannot actually be occupied by the owner by reason of the fact that owing to his employment, business or profession carried on at any other place, he has to reside at that other place in a building not belonging to him
1. Specific conditions are:
A. the property (or part thereof) is not actually let during the whole (or any part) of the previous year and
B. no other benefit is derived from the property.
2. Being an NRI, it is recommendable to show both the property in your ITR in India alongwith income earned in India during the previous year. For example interest received on NRE and NRO account.
The conditions related to claiming 2 property as self occupied is as under:
Where the property consists of a house or part of a house which—
(a) is in the occupation of the owner for the purposes of his own residence; or
(b) cannot actually be occupied by the owner by reason of the fact that owing to his employment, business or profession carried on at any other place, he has to reside at that other place in a building not belonging to him,
the annual value of such house or part of the house shall be taken to be nil.
Thus, 1 house is already occupied by your parents so that becomes self occupied and other one is empty so you could claim it as self occupied under point no. 2 above as you cannot occupy the house due to your business or employment.
Hence, I don't think there would be any issue.
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Thank you
