Bungalow with 1 floor self occupied, 2nd floor let out

1. No.

2. Here its one home loan for which single EMI is paid, so you can take single benefit for its deduction. You can calculate it as let out property for calculation of income from HP.

https://www.incometaxindia.gov.in/pages/faqs.aspx it says A house property may consist of two or more independent units, one of which is self-occupied and the remaining are/are used for any other purpose (i.e., let-out or used for own business). Income from such property will be computed in the following manner: a) Part/unit which is occupied by the taxpayer for his residence throughout the year will be treated as an independent property and income from such a part/unit will be computed in the manner as discussed in case of a self-occupied property. b) Part/unit which is let out will be treated as an independent property and income from such a part/unit will be computed in the manner as discussed in case of let out property.​