Tax consultation on property interest/principal and investment benefits

Hi,

Hope you are doing well !!

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 pre-requisite 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 benefits.

Each co-owner, who is also a co-applicant in the loan, can claim a maximum deduction Rs 2,00,000 for interest on the home loan in their Income Tax Return. The total interest paid on the loan is allocated to the owners in the ratio of their ownership. Each owner/borrower can claim interest benefit upto a maximum of Rs 2,00,000. Goes without saying, the total interest claimed by the owners/borrowers cannot exceed the total interest paid for the loan.

Each co-owner, can claim a deduction of maximum Rs 1,50,000 towards repayment of principal under section 80C. This is within the overall limit of Rs 1,50,000 of Section 80C.

As per income tax a person can claim upto 200000 of interest expense on home loan as deduction and 150000 of principal amount as deduction under section 80C. This benefit is available to each assessee so it doesn't belong to 1 property it belongs to 1 assessee so each will get 200000 and 150000 so if your loan are of this amount you can get maximum benefit.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi

Yes ,all joint owners are eligible to take deductions .Interest on loan deduction can be claimed under sec 24 (Max 2 lacs)and principle repayment can be claimed under sec 80 c(max 1.5 lacx).But jointly it can not be more than actual amount paid.

Hope it helps

Yes, both the co-owners can claim deduction for interest paid on housing loan (max 2 lacs per year) and 80C deduction on the repayments made.  It is necessary that each party has loan in his name and necessary payments are made.  Also, the property should be registered in both the names.

Dear Sir,

Joint Home Loan & Income Tax Benefits

• 
  Section 80C – As per this section, the repayment of principal amount of up to Rs 1.5 Lakh can be claimed as tax deduction by the applicants individually. All the co-borrowers can avail tax benefits. If there are two co-borrowers then the maximum total tax deduction under Section 80C can be up to Rs 3 Lakh (subject to actual principal repayment amount).
  
•  
• 
  Section 24 – As per this section, the interest payment of up to Rs 2 Lakh (for Self occupied property) can be claimed by the home loan borrowers. If there are two co-borrowers then the maximum total tax deduction under Section 80C can be up to Rs 4 Lakh. (The maximum interest amount that can be claimed as tax deduction u/s 24 is unlimited for a Let-out property).
  
•  
• 
  Ownership -To avail the income tax benefits on a Joint Home loan, the co-borrower of the loan has to be the co-owner of the property. So, if you are a co-borrower but not a co-owner of your property then you can not avail the income tax benefits. (Co-ownership is mandatory to avail income tax benefits)
  

Hi

Both you and your brother can claim the benefits if installments are paid proportionately by both of you.

Deduction for principal repayment of home loan can be claimed under 80C upto a maximum limit of all deductions 150000 under the section 80C.

Interest deduction can be claimed under the head Income from house property. For self occupied property, maximum interest deduction would be 2lacs per individual. For let out property, there's no limit. The maximum loss under the head Income from house property that can be set off against income under other heads in an year shall be 2lacs.