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Tax benefits on a joint home loan can be availed by all the joint owners, provided certain conditions are met. Let’s take a look.
Tax benefits on a joint home loan are available to all the joint owners. It’s pertinent to note that ‘ownership’ in the property is a prerequisite to availing any tax benefits against the property. You may have taken the loan jointly, but unless you are an owner in the property – you may not be entitled to the tax benefits.
There have been situations where the property is owned by a parent, and the parent & child together take up a loan which is paid off only by the child. In such a case the child, who is not a co-owner is devoid of the tax benefits on the home loan.
For example, Let’s understand Rahul and his father bought a house on loan and paid Rs 4,50,000 in interest. They have a 50:50 share in the property. Rahul can claim Rs 2,00,000 in his tax return, his father can also claim Rs 2,00,000.
To understand more on this , read Tax benefits on home loan for rented.
Therefore, as a family, you will be able to take a larger tax benefit against the interest paid on the home loan when the property is jointly owned and your interest outgo is more than Rs 2,00,000 per annum.
There may be a situation where you are 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 Income Tax Return.
Stamp duty and registration charges of a property can also be claimed by the joint owners. We have a detailed guide to help you maximize your tax benefits when you are the owner of a house property.
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