House Property Income: Self-Occupied vs Let-Out vs Deemed Let-Out

A self-occupied property has nil annual value but allows up to Rs 2 lakh home-loan interest deduction if let out within five years. A let-out property has annual value equal to higher of municipal value or fair rent, minus 30 percent standard deduction. A deemed let-out (more than one house owned) does not get the nil annual value benefit — you must compute rent. Home-loan interest for let-out property is allowed without limit; pre-construction interest is amortised over five years.