• Joint home loan - IT exemptions

Dear Sir, 

I will be obliged if you could clarify the following points for us. 

Me and my husband have jointly bought a flat in Bangalore. 
So far we have made exactly equal payments from our separate accounts. 
EMI payments will commence from february 22.
My annual salary is about Rs.6L and my husband s is about Rs. 15L.
I make regular 80C investment in PPF of Rs150k

With my low pay I don't need SEC24 benefits to save tax where as my husband would like to avail the entire 2Lacs limit. 
Since we jointly own the flat (and also the home loan), we dont know how to split our EMI between us so that he can enjoy the full benefit of Sec24. 

a) Can we simply split the EMI into 90℅ and 10℅ between us so that my husband pays 90℅ and take credit for the proportionate interest payments? We can do that for the entire life of the loan. 
b) The Sale Deed in our favour do not mention any ℅ ownership. We are co-owners. I presume 50-50 ownership is implied. 
c) Do we have to execute any document to make our 90℅-10℅ splitting technically and legally valid for the sole purpose of claiming IT exemptions? We don't want to violate any law at the same time we want to maximize our IT exemptions in a legally correct way.
d) Please suggest best way so that we can fully utilize the tax concessions. 

Please favour us with your valuable opinion urgently.
M. Jose
Asked 8 months ago in Income Tax

a) Yes you can do so. 

b) yes 50% is implied. But the proportionate payment (own contribution) made by you and your husband needs to look into.

Vidya Jain
CA, Kolkata
974 Answers
58 Consultations

4.8 on 5.0

Under Income tax Act, in case of co-owners, ownership is based on the investment in the property. 

a) Yes you can do this

b) Based on the investment in the property from individual saving accounts

c) No need to execute seprate document


Open joint account for the payment of EMI. Transfer 90% from husband saving account and 10% from your own account to joint account to pay monthly EMI. Only Rs. 2 lacs p.a. will be setoff against salary income. Decide the percentage of payment of EMI keeping in view the future income, maximum limit of Rs.2 lacs and avoid change in percentage subsequently.

Vivek Kumar Arora
CA, Delhi
4493 Answers
621 Consultations

5.0 on 5.0


You don't need a separate document to be executed. The distribution is usually decided based on the loan payouts by each co-owner.  Yes you can split the payments in 90:10 and show the contributions towards the EMI in same manner. 

Prerna Peshori
CA, Pune
94 Answers

5.0 on 5.0



a) Yes. You can do so. The interest deduction shall be allowed in proportion to the EMI payments by both of you.


b) From an income tax perspective, the ownership would be in proportion to the payments made by both of you. (Down payment + EMI)


c) That's not required.


Lakshita Bhandari
CA, Mumbai
5660 Answers
817 Consultations

5.0 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA