IT declaration with 2 house properties

section 80EEA provides for deduction in respect of interest on housing loan. To claim this deduction, you need to fulfill following conditions:

1. Loan is sanctioned by the financial institution during the period 1 April 2019 to 31 March 2021;

2. stamp duty value of residential house property does not exceed INR 45L

3. taxpayer does not own any residential house property on the date of sanction of loan

In you case, it appears that condition mentioned in 2 and 3 above is not satisfied and hence you are entitle to claim deduction under section 80EEA of the IT Act.

Having said this, you can claim deduction as per following:

Principal repayment - under section 80C - upto INR 1.5L

Interest - under section 24(b) - upto INR 2L

Please note that you can claim only your portion.

Thanks. so which itr will be applicable? 1 or 2?

Selection of ITR would depend upon the sources of income.