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How to claim tax benefits on your Joint Home Loan

Clix October 25, 2018

Looking to buy a house? Well it’s not an easy decision to make. There are so many factors to consider — societal pressure, family commitments, proximity to your office or your child’s school, and the list goes on! However, the biggest damper is always going to be ever-rising real estate prices.

Thankfully, home loans can help you buy your dream house without burning a hole in your pocket. What’s more, it also helps you save on taxes. And if you want to share the responsibilities, get a higher loan amount, and multiply the benefits — you can go a step further and opt for a joint home loan. This can help you get a larger loan amount sanctioned, while sharing the onus of repayment.

Here are some of the eligibility criteria for availing tax benefits:

● You need to be a co-owner
● You need to be a co-borrower
● You need to wait till the construction is completed

Moreover, all co-applicants drawing a regular income helps maximize the benefits of joint home loans.

Claim on interest deduction

For a home loan taken on a self-occupied house, you can claim up to Rs. 2 lakhs with regard to the interest paid. In case of a joint home loan, each applicant can claim their benefit separately. So, two people taking a joint home loan are exempted from paying a total amount of Rs.4 lakh. The total interest paid on loan is allocated to each one in the ratio of their ownership. Remember, the total interest claimed by the co-applicants cannot exceed the total interest amount paid on loan.

Claim on principal repayment

Under Section 80C, each co-borrower can claim a maximum deduction of Rs. 1.5 lakhs on the repayment of the principal amount. So, the total amount claimed will be Rs. 3 lakhs for two people taking a joint home loan. 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 falls under Section 80C as well, but can only be made in the year that these registration and stamp duty costs were paid in.

So, what are you waiting for? Get a joint home loan to enjoy a higher loan amount, to share the burden of repayment with the co-borrower, and to avail the added benefits of tax savings. Buying a house is now easier than ever with so many options at your fingertips.

T&C Apply. Disbursal of the loan shall be at the sole discretion of Clix Capital Services Private Limited and it’s group companies subject to its policies and execution of such documents as maybe necessary


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