If you own a property then you are required to pay annual property tax under the municipal authority of your locality. Under the income tax department, there are different names and the different tax rate is applicable as per the property type. If we talk about the house then the properties under income tax are called let out property, deemed property, and self-occupied property. In this answer, you will learn what is
self-occupied property.
What is self occupied property?When the owner of the property occupies his/her house for self residential then that property is known as self-occupied house property. If the property is vacant then that house is considered self-occupied for the purpose of Income Tax.
Before the financial year, 2019-20 if a person owns more than one residential property then only one property is considered as self-occupied property. The rest of the property of the taxpayer is considered to be deemed to be rent out properties.
After the financial year 2019-20 and onwards, a person can hold two self-occupied. A homeowner can claim his 2 properties as self-occupied and the remaining house will be considered as let out under Income tax purposes.
How to claim for tax exemption over self-occupied property?A person can claim for tax exemption on self occupied property when taken loan against your property more than Rs. 2 lakhs
Under Section 80C – Deduction on repayment of principal amount on home loan is up to Rs 1.5 lakh.
This is all you need to know about self acquired property.
What is self occupied property?
Kriti Kapoor
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2021-07-05T12:00:05+00:00 2025-04-30T19:36:45+00:00Comment
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