All joint owners are eligible for tax savings on a joint loan. It's important to remember that in order to qualify for any home loan co applicant tax benefits related to the property, "ownership" of the property is required. Even though you have taken out the loan jointly, you might not be eligible for the tax advantages if you are not an owner of the property.
Can co applicant claim tax benefit on home loan?
Yes! Both co-applicants can claim co applicant home loan tax benefits or deductions individually.
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You must be a property owner to be eligible to receive tax advantages for a home loan. In many cases, a loan is taken jointly even though the borrower is not listed as an owner in the property records. You might not be able to claim tax advantages in such a situation.
Apart from this the other 2 conditions to claim the tax benefit on the property are as follows;
You must be a co-borrower for the loan
The construction of the property must be complete
What is the tax benefit for co applicant of home loan?
- For a self-occupied property:
Each co-owner who is also a co-applicant in the loan can deduct a maximum of Rs. 2,00,000 for interest on the house loan in their income tax return for a self-occupied property. According to their ownership percentage, the owners receive a share of the total interest paid on the loan. It should go without saying that the total interest that the owners/borrowers can claim is limited to the total interest that has been paid on the loan.
- For a rented property:
In the 2017 budget, the amount of interest that can be deducted in relation to a rental property is limited to the amount to which the loss from such properties does not exceed Rs 2 lakhs.
Under section 80C, each co-owner can deduct a maximum of Rs. 1,50,000 for principal repayment. This is within Section 80Cs overall cap of Rs. 1,50,000.
Therefore, if the house is jointly owned and your interest outlay exceeds Rs 2,00,000 annually, you will be able to claim a bigger tax benefit against the interest paid on the mortgage as a family.
The joint owners of a property may also claim the stamp duty and registration fees.
I hope this answer suffices your understanding of the home loan co applicant tax benefits. I hope this helps:)
Understand the legalities of Joint Ownership by consulting the legal experts of NoBrokerRead More:
How to Sell a Joint Ownership Property? What Happens to a Jointly Owned Property if One Owner Dies in India? Procedure for deletion of the name of a deceased joint owner of residential property under construction?Your Feedback Matters! How was this Answer?
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Can Co Applicant Claim Tax Benefit on Home Loan?
Karishma
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2023-05-30T20:48:59+00:00 2025-01-13T17:45:49+00:00Comment
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