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Joint Home loan and dedication

22 December 2023

Dear Sir, we purchased a home jointly by bank loan, how we shall deduction in Income tax, We shall get deduction 1.5 lac & 1.5 lac in both ITR, and interest 2 lac & 2 lac from both ITR ? pls.

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14 Replies

Manish (CA) (1174 Points)
Replied 22 December 2023

deduction 1.5 lac & 1.5 lac in both ITR, and interest 2 lac & 2 lac from both ITR

Yes

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Sharath chandra (Accountant) (1227 Points)
Replied 22 December 2023

Can claim deduction in the ratio of the property ownership.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 22 December 2023

- Can claim deduction in the ratio of the property ownership.

Yes I agreed the above reply.

The deduction available as per ratio of the ownership of the property...

As per property ratio the said Interest and pricipal payment excess the said value then no problem...

Sparsh Gupta (24 Points)
Replied 22 December 2023

What is "ratio of property ownership" and where is it mentioned?

Tapas Samadder (536 Points)
Replied 23 December 2023

Ratio of property ownership is 50:50,

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 23 December 2023

Originally posted by : Tapas Samadder
	Ratio of property ownership is 50:50,

Then no issues...

They can claim deduction as you noted...

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Tapas Samadder (536 Points)
Replied 23 December 2023

Thanks Raja PM

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 23 December 2023

Originally posted by : Tapas Samadder
	Thanks Raja PM

You are most welcome...

Musrath Shaik (175 Points)
Replied 23 December 2023

In the context of joint home ownership and a joint home loan, the deduction of interest and principal repayment for income tax purposes can depend on various factors, including the ownership share and the contributions made by each co-owner. Here's a general overview based on common practices, but it's essential to consult with a tax professional for advice tailored to your specific situation:

Home Loan Principal Repayment:

Individual Deduction Limit: Under Section 80C of the Income Tax Act in India, each co-owner can claim a deduction of up to INR 1.5 lakh for the principal repayment on the home loan.
Joint Ownership: If the property is jointly owned, each co-owner can claim a deduction for their share of the principal repayment, subject to the overall limit of INR 1.5 lakh.

For further more detailed information on this topic visit: New Income Tax Return (ITR) Forms for AY 2023-24

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Tapas Samadder (536 Points)
Replied 23 December 2023

Dear Musrath Ji, your answer not clear to me , again I informing , it is Joined ownership and 50:50 ratio property. Can they claim 1.5 lac and 2 lac in each ITR ?

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Khushbu (CA Practice ) (25 Points)
Replied 25 December 2023

Yes. In the case of a joint home loan, both co-borrowers can claim deductions separately up to the limit of Rs. 1.5 lakh each, effectively doubling the tax benefit.