The provisions of the I-T Act for FY 2018-19 state that if a person owns more than one house, and none of them have been put out for rent or let out during the year, then they can treat both properties as self-occupied and all other properties, if any, as deemed to let out. The market rent that a similar property would fetch is deemed as the annual value of the property and is taxable even if they don’t earn an income on this. Thus, a person can have only one self-occupied house property as per the provisions of the I-T Act for the current FY, and he has to pay tax on all other house properties even if they have been lying vacant or occupied by any family member. The new provision states that considering the financial burden of paying taxes and maintaining families on multiple properties, there have been some changes.
If the person owns more than two houses, then they can claim the annual value of any two properties as nil, therefore they won’t be required to pay tax on the market rent on the second property. It can be treated as self-occupied only if it meets the following conditions.
If it is occupied for the owner’s own residence.
If it cannot be occupied owing to the owner’s employment, children’s education, or business at some other place.