Self occupied property


If someone has two properties and none of the two are rented out, which one will be considered self occupied?


If you do not rent any of your properties you will be liable to keep only one as a self occupied property. The second one will automatically be considered as a rented one and the market value of rentals applicable for income tax. You can however choose which property to be made self occupied and which one to be considered as deemed rented one.


Hi Sooraj,

If you have two properties, you have to choose one as self-occupied while the other will be deemed to be let out. You have to do this when you are filing your tax return. The onus of such declaration lies on you. You have to calculate deemed rent for the property that you want to put under the ‘let-out’ property category. You can claim tax benefits for both properties if you have taken a Home Loan for both of them. Tax benefits are available for both interest as well as principal repaid.

BB Expert