The conversation between human and AI assistant.
What is the difference between self-occupied and let out house property?
Is there any other difference in terms of loan eligibility or capital gains tax?
Loan eligibility and interest rates for home loans may differ based on whether the property is self-occupied or let out. Capital gains tax also differs for both types of properties. If a self-occupied property is sold after being held for more than 2 years, the gains are exempt under Section 54 of the Income Tax Act. However, if a let out property is sold after being held for more than 2 years, capital gains tax is levied.