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Own multiple houses? Here’s how you should file your income tax return

If you own more than two properties, irrespective of whether the other houses are vacant or occupied by you, they will all be deemed to be let out

September 21, 2021 / 10:34 IST
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If you own many houses, then the 'self occupied property' benefit is granted only to two properties as selected by you. The other property/properties are treated as ‘deemed to be let-out’ for the purpose of taxation. A self-occupied property means a property which is occupied throughout the year by the taxpayer for his residence. For those properties that are let out, or deemed to have been let out, you have to pay tax on rental income.

In the Interim Budget 2019-2020 the government exempted levy of income tax on notional rent on the second self-occupied house.

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Tax on rental or notional rental income

If you own more than two properties, irrespective of whether the other house(s) are vacant or occupied by you, they will all be deemed to be let out. The annual value of such house(s) will be determined (under section 23(1)(a) of the Income-tax Act, 1961) on which tax will be levied.