Benefits of Housing Loan for Joint Owner

Benefits of Housing Loan for Joint Owner

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 write up only for informational purpose only and it must be considered as an advice or opinion, or otherwise. Writer does not have an intention 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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