The Income Tax Act offers tax relief to individuals who have opted for a joint home loan. It can be claimed by any one of the co-applicants or both if the deduction amount is not more than the repaid principal amount.
Ways to claim tax benefits on joint home loan
Individuals who plan to claim tax benefits on joint home loan must keep in mind the following parameters:
- Borrowers must co-own a property
To avail of this tax benefit, applicants must be co-owners of a property. Moreover, the division of this exemption will depend upon the ownership ratio of the loan. It must have a clear mention in percentage on the property papers.
- Applying individuals must be co-borrowers
In order to claim tax benefits on a joint home loan, individuals applying for it must be co-borrowers. This is because this tax relief is only applicable to individuals who are contributing to the loan repayment.
- Property’s construction must be complete
Borrowers must keep in mind that to claim tax benefits on a joint home loan, the property for which the loan was taken must be complete. Upon fulfilment of this criteria, individuals can claim tax relief from the financial year of construction completion.
According to Sections 80C and 24, applicants can claim maximum tax benefits of Rs. 1.5 lakh on the principal part and Rs.2 lakhs on the interest paid, respectively. Thus, individuals planning to get a home loan can avail it with their spouses or family members.
Read the article given below to know how you can claim tax benefits on joint home loan.
