Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Two exempt, the rest taxed
You may designate two houses as self-occupied with nil value. Beyond that, any additional property is taxed: if let out, on its actual rent; if kept vacant, on a deemed (notional) rent equal to its expected market rent — the law does not let you keep multiple houses tax-free simply by leaving them empty.
The deductions still apply
On a let-out or deemed-let-out house you still deduct municipal taxes, the 30% standard deduction, and the full home-loan interest — with the ₹2 lakh annual cap on the loss you can set off against other income; excess interest is carried forward for 8 years. Confirm current rules, including which two houses to elect as self-occupied.
A worked example
Example: you own three flats — live in one, let one (rent ₹3 lakh), and keep the third empty. Two are self-occupied/nil; you choose the two that minimise tax. The let-out flat is taxed on ₹3 lakh (after deductions). If you instead let none and kept two empty beyond your two self-occupied, the extra would be taxed on notional rent. Our team can optimise the election.