Budget 2025: Now claim tax benefits for two self-occupied houses
The benefit of claiming the annual value of self-occupied properties as ‘nil’ will now be extended to two such self-occupied property without any condition.

Taxpayers can now claim tax benefits for two self-occupied houses, a major change from the previous rule that allowed relief for only one property. (Image: Freepik)
Good news for homebuyers. In a bid to give some relief to persons having two or more housing property, Finance Minister Nirmala Sitharaman announced in her Budget 2025 speech on Saturday that the benefit of claiming the annual value of self-occupied properties as ‘nil’ will now be extended to two such self-occupied property without any condition.
Taxpayers can now claim tax benefits for two self-occupied houses, a major change from the previous rule that allowed relief for only one property. “This reform significantly eases the tax burden for individuals who own and live in multiple properties, offering financial flexibility and promoting homeownership,” said Adhil Shetty, CEO of Bankbazaar.com.
Currently, an individual taxpayer residing elsewhere has the option to declare their owned house property as ‘Self Occupied house Property’ (SOP) if the same could not be occupied by them due to reasons such as employment/ business or profession carried on at any other place.
Hence, in case of a taxpayer moving to a different city (due to reasons other than employment/ business or profession), they have to declare such property as ‘Deemed to be let-out’ property and thereby, taxable on the notional rental income.
“To simplify the provisions, it is proposed to remove such reason of non-occupation of house property. This would have a positive impact for taxpayers such as retired citizens, and non-working population moving to other cities, and enable them to enjoy the benefit unconditionally. Taxpayers have the option to declare up to 2 house properties as SOP and it continues to be the same,” said Deepashree Shetty, Partner, Global Employer Services, Tax & Regulatory Services, BDO India.