What exactly is self-occupied property (SOP)?

A self-occupied property is one that someone uses for his or her own purpose. If a person owns multiple properties which are not rented, maximum of two of them can be treated as self-occupied House Properties, and the other properties will be treated as Deemed let out properties (i.e properties that are deemed to be rented out). As a result, the income from up to two chosen house properties will be treated as "Self Occupied" with Nil Rental Income and the remaining properties shall be treated as rented out properties even though not actually rented out.