Income Tax benefits on Housing Loan for Joint
Owner of Rs. 2 Lakh each

Section 24(b) of Income Tax Act, 1961 (amended)

Conditions for claiming Interest on Home Loan

1. Income Tax benefits on a joint home loan can be claimed by all the joint owners.

2. Ownership is required for joint owners i.e. Co-owner

3. Joint owners have taken the loan jointly i.e. Co-borrower

4. Not being a under construction property i.e. complete property

5. Each joint owner can claim interest of 2 Lakh depends on EMI paid

6. How much amount is being paid through EMI is eligible for interest benefit, but the amount of interest to be shared in the ratio of property share

7. In case of non mentioning of share of property, 50:50 is being assumed, and eligible for interest benefit in the same ratio

8. In case of Let out property; the interest that can be claimed as a deduction in case is restricted to the amount to which loss from such house property does not exceed Rs 2 lakh.

9. Each co-owner, can claim a deduction of maximum Rs 1.50 Lakh towards repayment of principal u/s 80C. This is within the overall limit of Section 80C.

10. In case of paying the entire loan instalment and the co-borrower is not contributing any payments. In such a case, you may claim the entire interest as a deduction in your ITR.

11. Other Exps like Stamp duty and registration charges of a property can also be claimed by the joint owners..

12. Hence, as a family, you will be able to take a huge tax benefit against the interest paid on the home loan when the property is jointly owned and your interest outgo is more than Rs 2 Lakh

Note;

Interest benefit of Rs.2 Lakh u/s 24(b) can be claimed by joint owner subject to comply few above conditions, along with principal repay u/s 80 C upto Rs.1.50 Lakh

Disclaimer: This insight is meant for informational purpose only and should not be considered as an advice or opinion, or otherwise, whatsoever. Author does not intend to advertise its services through this insight, and not responsible for any error or omission in this insight or for any action taken based on its contents.

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5 Comments

  1. SURAJ says:

    SIR I have similar questions my wife is non working non and non tax payer. I am buying property on her name as in my state Uttrakhand registration is minimum fee for women. However I took loan my wife as co applicant.As I am paying the entire amt Can I claim 100% of amount for tax benefit.

  2. Swapnil Nalkar says:

    @skjain1147: one should be a co-owner as well as a coborrower to be entitled for deduction u/s 24(b) and section 80 C. In my case I do not contribute to emi but I show 50% share for interest and principal payments under 24(b) and 80 C respectively.

  3. RAGHWENDRA KUMAR SINHA says:

    Hi I have similar questions my wife is non working non and non tax payer. I am buying property on her name as in my state jharkhand registration is free for women. However I took loan my wife as co applicant.As I am paying the entire amt Can I claim 100% of amount for tax benefit.

  4. Prakash says:

    मकान पत्नी के नाम है,
    ऋण पति एवं पत्नी दोनो के साझा मे है, Coboroer
    ऋण केवल पति के बैंक खाते से ही किया जाता है,
    पति को income tax rebate मिलेगी

  5. skjain1147 says:

    Plz tell if husband and wife are joint owners and wife has contributed nothing towards purchase of property and not paying EMI too . But she is in ownership of the property as her name is mentioned in the deed . Now if he is entitled for deduction u/s 24(b) and section 80 C

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