Housing loan

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Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2013 If i am talking house loan in joint names then will i be getting amount of deduction of Sec.24, 80C and 80EE under each holder's name respectively.

or these are upper limits whether you go for the loan in Joint holder or in sole name. pLease clearify this.

Sanket

Sanket (Expert)
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17 September 2013 From a taxation point of view, a joint home loan is also beneficial as all co-borrowers can claim tax deductions under Section 24 of the Income Tax Act against interest repaid and under Section 80C against principal repaid.

Where two or more persons have taken a joint home loan, every assessee (person paying the income tax) can enjoy the tax benefits available under the Income-tax Act, 1961 in respect of the principal and interest paid during a financial year, on proportionate basis.

"The tax benefits that can be claimed would be in proportion of the share that the individuals have in the loan," says Shilpa Patankar, associate director, KPMG.

In case the property for which the loan has been obtained is self-occupied, then an amount up to Rs 1,50,000 is allowed for deduction on account of interest paid under Section 24. Under Section 80C, an individual can claim deduction up to Rs 1,00,000 on principal paid.

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2013 If 2 owners are there of property then they both can have deduction of 1.5 and 1 lac each and they can enjoy in separately or in adhoc basis it is available upto 1.5 n 1 lac irrespective of number of owners.

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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28 July 2024 When you take a housing loan in joint names, both co-borrowers can claim tax benefits separately under various sections of the Income Tax Act. Here’s a detailed explanation of how these deductions work:

### **1. Section 24(b) - Interest on Housing Loan**

- **Deduction Limit**: Under Section 24(b), you can claim a deduction of up to ₹2L per year on interest paid on a housing loan for a self-occupied property.

- **Joint Loan**: If the loan is in joint names, both co-borrowers can claim this deduction individually, subject to the following conditions:
- Both must be co-owners of the property.
- Both must be co-borrowers of the loan.
- The deduction can be claimed in proportion to the share of the interest paid by each borrower as reflected in the loan account.

**Example**: If the total interest paid on the loan is ₹4L, each borrower can claim a deduction of up to ₹2L (assuming they share the loan equally).

### **2. Section 80C - Principal Repayment**

- **Deduction Limit**: Under Section 80C, you can claim a deduction of up to ₹1.50L per year on principal repayment of a housing loan.

- **Joint Loan**: Both co-borrowers can claim the deduction under Section 80C separately, provided:
- Both are co-owners of the property.
- Both are co-borrowers of the loan.
- The deduction is available in proportion to the principal repayment made by each borrower.

**Example**: If the total principal repayment is ₹3L, each borrower can claim a deduction of up to ₹1.50L (assuming they share the loan equally).

### **3. Section 80EE - Additional Interest on Housing Loan**

- **Deduction Limit**: Section 80EE allows an additional deduction of up to ₹50K on interest paid on a housing loan for first-time homebuyers.

- **Joint Loan**: Each co-borrower can claim this deduction separately, provided:
- They meet the eligibility criteria of Section 80EE.
- Both are co-owners and co-borrowers.
- The deduction is applicable individually and not combined.

**Example**: If both co-borrowers are first-time homebuyers and meet all conditions, each can claim a deduction of ₹50K

### **Summary**

1. **Interest Deduction (Section 24(b))**:
- Maximum of ₹2L per borrower per year.
- Joint loan: Both can claim up to ₹2L each, based on their share.

2. **Principal Repayment (Section 80C)**:
- Maximum of ₹1.50L per borrower per year.
- Joint loan: Both can claim up to ₹1.50L each, based on their share.

3. **Additional Interest (Section 80EE)**:
- Maximum of ₹50K per borrower per year.
- Joint loan: Both can claim up to ₹50K each, if eligible.

### **Key Conditions**

- **Co-Ownership**: To claim these benefits, both co-borrowers must be co-owners of the property.
- **Proportional Sharing**: Ensure the deductions claimed reflect the actual share of payments made by each borrower.

By following these guidelines, both co-borrowers can maximize their tax benefits related to housing loans. Make sure to maintain proper documentation and consult with a tax professional to ensure compliance and optimize your tax benefits.