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Eligibility Criteria To Claim Tax Benefits on Joint Home Loans

Clix November 27, 2019

A joint home loan is a great way for homeowners to share the debt burden while also increasing the overall loan amount they’re eligible for. One of the major advantages of taking a joint home loan is the tax benefits that can be enjoyed with this service. A maximum of six co-applicants can collectively take a joint home loan.(1)

If you want to claim tax benefits on joint home loans, then you should be aware of the eligibility criteria.

  • You must be the property’s co-owner. If you’ve taken a joint loan but aren’t listed as an owner on the property documents, then you’re not eligible for any tax benefits.
  • You must be a co-borrower for the loan. If you’re an owner of the property but aren’t mentioned as an applicant according to the loan documents, then you won’t be eligible for tax benefits.
  • The property’s construction must be complete. Tax benefits can only be availed from the financial year in which the property is constructed.

If you meet this eligibility criterion, then you can enjoy the following tax benefits by taking a joint home loan.

Claim on interest deduction

For a joint home loan that’s taken on a self-occupied house, you can claim up to a maximum of Rs. 2 lakhs each in regard to the interest paid. Keep in mind that the total interest claimed by the co-applicants cannot exceed the total interest amount paid on the loan.

Claim on principal repayment

Under Section 80C, each co-borrower can claim up to a maximum of Rs. 1.5 lakhs towards the repayment of the principal amount. Again, the amount claimed cannot exceed the total amount of the principal itself.

Claim on the cost of registration and stamp duty

Any payment that the borrowers have made for registration and stamp duty can also be claimed. This also falls under Section 80C. This claim can only be made in the year that these registration and stamp duty costs are also paid off.

A joint home loan is an excellent option to enjoy higher claims and avail better tax benefits. Families, siblings, or any other group will find it in their best interests to go for a joint home loan structure. A cumulative amount of Rs. 3.5 lakhs on top of other claims is an excellent benefit that you shouldn’t miss out on.


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