You can deduct property taxes on your second home, too. In fact, unlike the mortgage interest rule, you can deduct property taxes paid on any number of homes you own.

Can I have 2 self-occupied property?

The choice of which property to choose as self-occupied is up to the taxpayer. For the FY 2019-20 and onwards, the benefit of considering the houses as self-occupied has been extended to 2 houses. Now, a homeowner can claim his 2 properties as self-occupied and remaining house as let out for Income tax purposes.

How do I claim 2 home tax exemptions?

2. The first home is self-occupied, while the second is on rent: You have to declare the rental income of the second property. From there you can deduct the standard deduction of 30 percent, interest on the loan ( without any upper limit) and the municipal taxes paid.

How is income from house property calculated?

The property owner cannot charge a rent higher than the standard rent fixed under Rent Control Act. Net Annual Value (NAV) is the value calculated as Gross Annual Value minus Municipal taxes paid. These are deducted to ascertain the Actual taxable income.

What is 80EEA exemption?

Amount of deduction A deduction for interest payments up to Rs 1,50,000 is available under Section 80EEA. This deduction is over and above the deduction of Rs 2 lakh for interest payments available under Section 24 of the Income Tax Act. Read more about the deduction of Rs 2 lakh on interest on home loan here.

Can You claim tax deduction on multiple houses?

The income tax laws do not have any restriction on the number of houses for which you can claim this deduction. The income tax laws also do not distinguish between self-occupied property or a let out property, for this purpose.

What kind of tax deduction can you claim on self occupied house?

For a self-occupied house property, since the Annual Value is Nil, the standard deduction is also zero on such a property. And, the owner can claim a deduction for up to Rs. 2 lakhs if he/she resides in the property and if the property is rented out (even not given on rent) the entire interest on the home loan is allowed as deduction.

What kind of tax deduction can I claim for rental property?

And, the owner can claim a deduction for up to Rs. 2 lakhs if he/she resides in the property and if the property is rented out (even not given on rent) the entire interest on the home loan is allowed as deduction. This is the most used option to save Income Tax.

What can be claimed as income from house property?

While computing ince chargeable to tax under the head “Income from house property” in the case of a let-out property, only following items can be claimed as deductions from gross annual value. In​ other words, deduction cannot be claimed for any expenditure incurred by the taxpayer other than following:​