Query: I have 2 houses in my own name in the nearby district of my job. I stay in Govt. staff quarters and given one of the house on rent and kept one for self use.
1. Is it permissible to keep one of the house for self use when I stay in staff quarter ?
2. In the year beginning both houses were vacant and I have declared house A as self occupied and for house B declared a notional value as the rental income prevailing in that area for the purpose of IT( as it is mandatory to declare notional income from any one house if owns more than one house). But after a few months in Aug 12, I have got a good party for rental for house A and rented it out. Can I change the declaration in between and declare B as self occupied and calculate the net income /loss from both housing properties together effecting this change in 'self occupied property'?
Reply:1. It is permissible under the income tax law to keep one of the house for self use when you stay in staff quarter.
2. You can have one house as the self occupied property for the initial months , and another for the rest of the year.