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1. Yes, you both for deduction on interest/principal paid towards separate home loans subject to certain conditions.
To be able to claim the tax benefits on the property –
- You must be a co-owner in the property– To be able to claim tax benefits for a home loan, you must be an owner in the property. Many a times, a loan is taken jointly, but the borrower is not an owner as per the property documents. In such a case you may not be able to claim tax benefits.
- You must be a co-borrower for the loan –Besides being an owner, you must also be an applicant as per the loan documents. Owners who are not borrowers and do not contribute to the EMI shall be devoid of the tax benefits.
- The construction of the property must be complete – Tax benefits on a house property can only be claimed starting the financial year in which construction of the property is complete. Tax benefits are not available for an under construction property. However, any expenses prior to completion are claimed in five equal instalments starting the year in which construction is complete.
2. Yes, you can take deduction of principal repayments u/s 80C.
- 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.
4.Broadly/Practically, there are following Income tax sections under which we can claim the tax exemptions -
80C-Section 80C comprises of various investments and expenses that are eligible for tax deductions. A taxpayer can claim maximum tax deductions of Rs 1.5 lakh for a particular financial year (FY) from his/her taxable income through investments made by him/her under section 80C of the Income Tax Act, 1961.
5. Term deposits
It is advisable to claim maximum tax deductions of Rs 1.5 lakh by investment specified u/s 80C.
80CCD-To encourage the investors to invest for retirement in Nation Pension Scheme, the government allowed addition tax deduction of Rs 50,000 under section 80CCDD.
It is over and above Rs. 1.5 lakh limit.
80D-Deduction for the premium paid for Medical Insurance up to Rs. 50000 subject to conditions.
80G-The various donations specified in u/s 80G are eligible for deduction up to either 100% or 50% with or without restriction as provided in section 80G.
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