Tax on rental income

Eaxctly you are thinking right you have the option of showing any of the housr as SOP & DTLO...its totally up to the assessee to show any of the housr as SOP.

The Second Property is let out to a company (not an individual).

Does the Income Tax allow this choice of interchangebility, irrespective of the status i.e., individual, firm, company or bank.

Also, if the property is let out to company or bank, can the assessee claim Standard deduction of 30%.

There is no restriction on choosing a property as self occupied and all others as Deeemed to be let out.

However, this choice can be exercised only when no other income is derived from such properties.

If you are getting rent from a property, you can no way show it as self occupied. It is not the intention of law that even if you have rental income, you can show it as self occupied.

The example provided by you doesn't lead to tax saving but for tax evasion.

Dear Vivek

A person cannot claim one property to be self-occupied if such property is actually let-out. The option of choosing one property as self-occupied and other as Deemed to be let out is available only when both of them are lying vacant and are not rented.

But, in the present case, since the property is actually let out, assessee is bound to give tax on such property.

Further, under the head "Income from House Property", deduction of 30% is allowed to everybody.