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Tax savings on nri home loan taken

Ronald Jones (Accounts Officer) (34 Points)

07 November 2016

An employee who is an Indian resident has taken NRI loan from a bank in India, jointly by this employee and her NRI husband. Can the Indian resident avail benefits of tax exemption for the principal amount and interest on HL. Kindly inform.

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185206 Points)
Replied 07 November 2016

Is it Housing loan? if yes, then she can get exemption upto her share in the property, upto the limit of EMI share paid by her.

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Shivangi Garg (Practicing Chartered Accountant) (110 Points)
Replied 07 November 2016

Yes, benefit of interest and loan repayment can be availed. Claim amount will be determined for her share in the property.

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Abhinav (CA) (397 Points)
Replied 25 January 2017

The Indian resident can only claim tax benefit on principal as well as interest to the extent of the share of EMI payment made by her. In case property is self occupied, interest benefit is restricted to INR 2 lacs whereas there is no limit in cas of let out property. For principal, limit is INR 1.5 lacs irrespective of whether property is let out or self occupied.