Income from 2 self occupied houses

Dear All,

I own 2 houses A and B in the same city and I stay in house A and the other house B is laying vacant. 

I am paying EMI for home loan for house A interest of 250000 and principal amt 200000 INR

House B is free from all loans.

 Can I show both houses to be as Self-Occipied  or should house B be considered deemed let out? How should I proceed for income from house property?

 

The question is with respect to AY 2020-21.

Thanks 

Jaya

 

Replies (2)
Quick Summary
This discussion explores whether an individual can declare two houses as self-occupied for income tax purposes, particularly when one is vacant. The user owns two houses, resides in one, and the other is empty. They are seeking clarification on how to classify the vacant property and the implications for their income from house property for AY 2020-21. The response suggests that under specific conditions, a vacant property can still be treated as self-occupied, allowing for nil annual value, provided it's not let out and no other benefit is derived.

You can show both properties as self occupied

I read this in some site.

A self-occupied property means a property which is occupied throughout the year by the owner for his residence. Thus, a property not occupied by the owner for his residence cannot be treated as a self occupied property. However, there is one exception to this rule. If the following conditions are satisfied, then the property can be treated as self-occupied and the annual value of a property will be "Nil", even though the property is not occupied by the owner throughout the year for his residence :

 (a)  The taxpayer owns a property;

 (b)  Such property cannot actually be occupied by him owing to his employment, business or profession carried on at any other place and he has to reside at that other place in a building not owned by him;

 (c)  The property mentioned in (a) above (or part thereof) is not actually let out at any time during the year;

 (d)       No other benefit is derived from such property.

If the above criteria need to be satisfied then how do I apply this to my scenario to get the best benefit.

Thanks,

Jaya

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