Tax Benefits on taking Home Loan on Joint Names

By Accommodation Times Bureau
One of the most attractive benefits of taking a home loan is that they help you save tax, while you prepare to invest in a fixed asset. Acquiring a home loan makes you eligible for tax rebates under Section 80C and Section 24 of the Income tax regulations.

Highlights

Tax benefits get divided among co-applicants in case of a joint loan
The division takes place in the same proportion in which the asset is owned by each co-applicant
Each co-applicant can claim a maximum tax rebate of up to Rs. 1 lakh for principal repayment and Rs. 1.5 lakh for interest payment
The very first condition is the house property has to be bought by the individuals jointly, and this should be in their joint names.
The share of each holder should be clearly mentioned so that there is absolute clarity on the percentage ownership of each co-owner.
Tax benefits of Home Loan- Overall there are two types of tax benefits that are available on the repayment of a housing loan.

Interest paid on the loan is eligible for a deduction up to Rs. 1.5 lakh per annum from the taxable income of the individual under Sec 24 when the property is self-occupied or it is one ownership property lying vacant.
The return of the capital of the loan along with the interest up to Rs. 1 lakh is included in the benefit under Sec 80C.
The planning in the entire issue has to be done in such a manner that all the joint holders are able to take the tax benefit and no part of the total repayment goes waste.

Advantage for joint home loan takers-





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2 thoughts on “Tax Benefits on taking Home Loan on Joint Names

  1. Thanks !!!
    After reading it we go through House Property, Wealth Tax and tax planning topics …………amazing capturing presentation….:)

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