How do I get tax benefit on a joint home loan?

How do I get tax benefit on a joint home loan?

Conditions to Claim the Tax Benefit on the Property

1. You must be a co-owner in the property– To be able to claim tax benefits for a home loan, you must be an owner in the property.
2. You must be a co-borrower for the loan –Besides being an owner, you must also be an applicant as per the loan documents.

Can both husband and wife claim interest on housing loan?

Since the property is jointly owned by you (the husband) and your wife, both of you are entitled to claim the benefit of interest under Section 24 as well as in respect of repayment of principal amount of home loan under Section 80C provided both are servicing the home loan.

Can both co applicant claim tax benefit?

Both the primary applicant and co-applicants can independently avail of these tax benefits as per their contribution towards loan repayment. “Adding a co-applicant can help yield higher overall tax benefits.

Can home loan be taken on joint name?

As the name implies, a joint home loan is a loan that you take with another person, usually a spouse or a sibling. Chances of getting a home loan at attractive interest rates are much higher in a joint home loan compared to the regular one.

Can I claim tax exemption for a property in my wife’s name for which I am paying full EMI?

Yes, husband can claim ownership of property bought in wife’s name provided the funds used for buying the property is from known sources and legal.

How much home loan can I get in taxes?

In case of a home loan taken jointly, both borrowers can enjoy tax benefits on his/ her taxable income individually. This includes a maximum of Rs. 2 lakh on the interest paid and up to Rs. 1.5 lakh on the principal amount.

Can I take home loan and registered in my wife’s name?

You can buy a home in your wife’s name to save money or apply for a joint home loan as co-owners of the property and share the repayment obligation too.

Is joint home loan good?

Conclusion. Taking a joint home loan is beneficial not only in acquiring a larger or better home, but also in bringing down the overall cost of home due to the increase in tax benefits. Moreover, the sharing of responsibility in the servicing of the loan also brings down the burden of loan repayment.

Can home loan be taken in wife name?

Can two home loans be taken?

You can have as many home loans in India as you need, as there is no law barring you from servicing only one home loan at a time. If you want to purchase, say, 5 properties at once, you can take 5 different home loans from 5 different lenders.

Can 2 persons take home loan on same property?

Two brothers can be co-applicants of a home loan only if they live together in the same property. They must be co-owners in the property for which they are taking a home loan. However, a brother and sister cannot be the co-applicants of a home loan. Similarly, two sisters cannot be co-applicants.

Do we get tax benefit on home loan?

The mortgage interest deduction is a tax incentive for homeowners. This itemized deduction allows homeowners to count interest they pay on a loan related to building, purchasing or improving their primary home against their taxable income, lowering the amount of taxes they owe.

Can home loan be taken in joint names for tax benefits?

You may need NOC from joint owner to avail tax benefits You may face obstacle in claiming tax deductions on interest payment and principal repayment if home loan is taken in joint names.

What are the tax benefits of a joint loan?

Joint holders can claim the maximum tax benefits individually. This means each holder can get a tax rebate of Rs. 1.50 lakh for principal repayment under Sec 80C and Rs. 2 lakh for interest payment under Sec 24. The tax benefits are applied according to the proportion of the loan taken by everyone involved in the joint loan.

Can joint owners claim the same amount of interest?

Make sure that all the joint owners are not claiming tax benefits on the same amount of interest or principal payments. Tax payers who want to claim tax deductions, must get a No-Objection Certificate (NOC) from other members, clarifying that they would not claim any tax benefits on that specific amount.

Can I claim tax benefits on loan amount paid by relatives?

Yes, all four borrowers will be eligible for tax benefit of up to 2 lakhs individually, under section 24 for interest payments. The principal repayments will not qualify for tax deduction as loans only from banks are eligible for such benefits. To claim this you will need to provide a certificate issued by the relatives.