Tax Rules for Owners of Two Houses

Tax treatment of a house depends on whether it is self-occupied or let out.

For self-occupied property, no rental income is assumed, but home loan interest deduction is capped at Rs. 2 lakh.

For let-out property, actual rent received is taxable, but full interest on home loan is deductible.

If a second house is deemed let out, notional rent may be added to income.

Deductions under Section 24 and Section 80C apply based on occupancy status.