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.