Self-Occupied House Property:
Self-occupied house property is used for one’s own residential purposes. This may be occupied by the taxpayer’s family – parents and/or spouse and children. Vacant house property is considered as self-occupied for the purpose of Income Tax.
For the FY 2019-20 and onwards, the benefit of considering the houses as self-occupied has been extended to 2 houses earlier it was 1 only. Now, a homeowner can claim his 2 properties as self-occupied and the remaining house as to let out for Income tax purposes.
Let Out House Property:
A house property that is rented for the whole or a part of the year is considered a let-out house property for income tax purposes.
Inherited Property:
An inherited property i.e. one bequeathed from parents, grandparents, etc again, can either be a self-occupied one or a let-out one based on its usage as discussed above.