I’m taking joint home loan with my husband. Will both get tax benefit?
Probably the best reason why salaried individuals, in particular, opt for a joint Home Loan has its tax benefits. The Income Tax Act provides that a borrower can claim an exemption under Section 80 C up to Rs 1,50,000 for the principal repayment and up to Rs 2,00,000 on the interest amount under Section 24.
However, in case of a joint loan, all the co-owners can claim for deductions to a maximum of Rs 4,00,000 on interest paid jointly and Rs 3,00,000 on principal paid in a financial year. The tax benefits are calculated in the same ratio as the loan is sanctioned and each individual’s exemption limit stands.
Note that you can claim the tax benefits only in the proportion in which you own the home. Suppose the interest repaid is Rs. 4,00,000 and you own the home in the ratio 50:50, then you can claim Rs. 2 lakhs and your husband can claim Rs. 2 lakhs.
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