I have two houses, i.e. house A and house B. I stay in house A and house B is rented. House A has an active home loan. The home loan on house B is paid off.
I understand on your rented house, the overall interest amount paid on the home loan can be adjusted with income from that rented house.
As my rented house B does not have an ongoing home loan, therefore I cannot avail the above option. However, I want to understand if it is left to the taxpayer to decide which house to show as rented and which as self-occupied irrespective of where he/she actually stays. If yes, then I may have an option to declare house A on rent and house B as self-occupied, and this way I can take the benefit of adjusting the total interest paid on my house loan against rent income.
Please let me know if there is an option. As of now, I show house A as self-occupied and house B as rented and I claim a 2 lakh interest waiver on house A.