How to claim tax benefits on joint home loans

How to claim tax benefits on joint home loans
April 30, 2019 | Construction

You’ve done your research and have started hunting for prospective apartments in kochi, apartments in thrissur or apartments in trivandrum from the best builders in kerala after listing out a number of pros and cons and then it hits you – the ever-rising real estate prices. Thankfully, home loans are there to the rescue. It also helps you save on taxes.

You can even go a step further and opt for a joint home loan if you want to aim bigger and share responsibilities without overburdening yourself. Joint home loans help you get a larger loan amount sanctioned while sharing the responsibility of repayment.

One of the most lucrative benefits of taking a joint home loan is that they help you save tax while investing on fixed assets. Section 80C and Section 24 of the Income-tax regulation makes you eligible for tax rebates under home loans.

Highlights of joint home loan:

  • Tax benefits get divided among the co-applicants
  • The division of the asset is proportional to the share owned by each co-applicant
  • It is mandatory that the house property has to be bought by the individuals jointly, in
    their joint names
  • The share or the percentage ownership of each co-owner should be mentioned clearly

Advantages for joint home loan takers:

Claim on Interest deduction

You can claim up to Rs. 2 lakhs with regard to the interest paid for a home loan taken on a self- occupied house. In case of a joint home loan, each applicant can claim their benefit separately. Hence two people taking a joint home loan are exempted from paying a total amount of Rs. 4 lakh. The total interest paid on loan will be allocated in the ratio of the ownership of both the parties involved. However, the total interest claimed by the co-applicants can never exceed the total interest amount paid on loan.

Claim on Principal repayment

As per the Section 80C of the Income Tax regulations, each co-borrower can claim a maximum deduction of up to Rs. 1.5 lakhs on the repayment of the principal amount. Thus for two people in a joint home loan, the total claimable amount of deduction will be Rs. 3 lakhs provided they are co-owners of the property and each of them is contributing to the home loan repayment. Remember, the amount claimed can never exceed the total amount of the principal itself.

Claim on the Cost of registration and stamp duty

Under Section 80C, any payments that the borrowers have made for registration and stamp duty are claimable. Given, it can only be made in the year that these registration and stamp duty costs were paid in.

So, wait no more. Get a joint home loan to avail the benefits of tax savings and own your dream home today. Buying homes in kerala become much easier than ever with the right builder by your side. That’s why we suggest you team up with Kalyan Developers – the most trusted builders in kerala.

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