Home loan benifit in case of joint ownership

[CA Sunil Chahal]

In case of joint home loans, there are tax benefits that you can avail of. Here’s what you need to know:

1. Ownership Requirement:
   • To claim tax benefits, you must be a co-owner of the property. Being a joint borrower alone isn’t sufficient.
   • The property’s construction must be complete; benefits aren’t available for under-construction properties.
2. Tax Benefits:
   • For a self-occupied property, each co-owner (who is also a co-applicant) can claim a maximum deduction of ₹2,00,000 for interest on the home loan in their Income Tax Return.
   • The total interest claimed by all owners cannot exceed the actual interest paid.