Home loans have been companions of many people in building/buying their dream house. Many banks can offer home loans …
Continue reading “When Is the Right Time for a Home Loan Balance Transfer?”
A credit score is one of the most important parameters to judge the creditworthiness of a borrower. All reputed …
Continue reading “What To Expect When Your Credit Score Is 750?”
Buying your dream home is a remarkable achievement for most people in life. However, it can be hard and …
Continue reading “What Makes Home Loan a Tax Saving Proposition?”
Eligibility Criteria To Claim Tax Benefits on Joint Home Loans
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.
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.
Sources
https://www.businesstoday.in/moneytoday/cover-story/take-joint-home-loan-for-greater-benefits/story/18146.html