Taxation on more than one property

I had one house in which I live (also had a housing loan over it) and another house that is inherited(now I am the owner of this property too) from my parents(no one lives here from the time it is inherited to me, it is vacant). Both the houses are in a different cities.

1) So how to file tax. Do I have to show both the property or can only show the property in which I actually live? 

2) If to pay on both the property, then can it be considered self-occupied? And how to calculate total tax iability in that case

3) which ITR form to consider (ITR-1, ITR-2, ITR-3 or ITR-4).

Please give answers in detail.

Thanks in advance

Replies (4)
Quick Summary
This discussion clarifies how to declare multiple properties when filing UK income tax. Generally, you only need to report properties if they generate rental income or if you're claiming home loan interest deductions. You can choose to declare both properties as self-occupied, but this may affect the ITR form you need to use. The final tax liability depends on your total income and whether you have rental income or claim specific deductions.

You do not have to report any of the properties while filing your Income Tax return until and unless you have rental income from these properties or you have a home loan interest deduction to be claimed u/s 24. 

Your total tax liability will depend upon your total income earned during the year. 

The type of form will also depend upon your source of income. 

If you want you can declare both the houses as self occupied. This is because your ITR form number will change. I advise clients to report. However, I haven't seen such practice in the industry as mentioned by CA Puja Sharma ji.
If it's self occupied then, are u deriving income from house property. If it's on let out house property are u deriving income. IF NO.So whats the tax liability
nil

I don't think so if there is no rental income and no housing loan to claim interest benefit,  then house properties have to be mentioned in ITR. 

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