How Can Owners Claim Tax Benefits on Joint Home Loans?

Everyone dreams of buying a new home, Although it seems very confusing and puzzling at the start. After good research or through real estate directories, buyers end their quest by finding an ideal home as per their needs based on a suitable location, type of the house, nearby amenities, and many more,

But, at this stage there arrives the big question “How to pay for the Property”. Purchasing a property is a massive financial move for an average living person. Comparatively, there may be fewer people who will have the entire amount prepared, before purchasing a house. As a saviour, this is where the home loans step in.

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Income Tax Act Regulations

The most significant benefit of applying for a home loan is, it helps you with tax benefits. According to income tax regulations, anyone who acquired a home loan is eligible for tax allowances.

Under Section 24: For a self-occupied property, a deduction up to Rs 2 Lakhs is availed on interest on the home loan.

Under Section 26: For joint ownership of the property, you will be taxed as per your share of the portion in the property.

Under Section 80C: According to this rule on the principal amount, while repaying the home loan a deduction up to Rs 1.5 Lakhs is given.

What Are Joint Home Loans?

While purchasing a house, married couples or partners usually choose for joint home loans. But, it creates confusion as who is going to get the home loan benefit and what are the tax benefits they can claim by opting for a joint home loan.

To meet joint home loan eligibility, one needs to fulfil certain conditions:


For anyone to claim tax benefits for a home loan on a property, they must be the owner or the joint owner of the property. For suppose if you take a loan jointly, but is not an owner as per the property registered documents, then you will not be able to claim tax benefits. It is vital that your name is recorded as co-owner of the property.

Joint Account

While paying back the loan, the transactions must be carried out by the joint owners from an account which is under both the applicant's name. And both the owners must apply for a home loan if in case one doesn't want to borrow money for the property, then they will not be eligible for the tax benefits.

Fully Constructed Property

Starting from the initial stage of the construction, one can’t avail the tax benefits. An under construction property is not applicable to claim tax benefits under these criteria. Tax benefits on a property can be availed from the financial year for which the construction of the property is completed.

Focal Points

  • The property must be owned by both the partners, then it fulfils the condition of being a joint property.

  • When you opt for joint home loans, the tax benefits can be claimed by both applicants.

  • An individual partner can claim tax benefits up to Rs 1.5 Lakhs for p[rincipal and Rs 2 Lakhs for interest.

  • The portions of the owned property must be mentioned explicitly to claim the benefits.

  • The benefits are divided as per the percentage owned by the individual partners.

Joint Home Loans Tax Benefits

  • When considered individually, co-owners can claim tax benefits separately. As a benefit, both applicants can enjoy the tax benefits of Rs 1.5 Lakhs on principal payment and Rs 2 Lakhs on interest payment.

  • As per their particular portions in the property, the tax benefits are given. So, to specify who owns how much percentage in the property it is vital to mention it legally in a stamp paper as an ownership legal proof.

  • To avail maximum benefits of the tax, it is best the higher borrower pays high payments, to ensure they get the most of the tax benefits scheme.

  • A joint home loan is more likely to get sanctioned ahead, as both incomes of the co-owners are considered by the lenders. This ensures the buyers to get a maximum home loan to purchase their property.

  • If in some particular case, if you are only contributing to the home loan while the other owner is not contributing his/her share. Then, in your income tax return, you can claim the entire interest as a deduction.

  • During stamp duty and land registration charges, in many states, for women, the charges are less when compared to men. So, in case of the joint property, if one of the co-owner is women, fewer registration charges are applied.

  • If in case of a couple, if both come under the highest tax slab, they will get a tax benefit of Rs 21,0000. Compare to the individual loan, for a joint loan, it is doubled of the tax benefit. But, this differs from to person.


Before taking a big step for applying for joint loans, one should be particular about his/her partnership. They should consider their partners repayable status, legal documents, etc. The tax benefits may differ on the person's tax slabs. If you are a couple are opting for a joint home loan, it’s best if the person with a higher tax slab owns a bigger share of the property to enjoy tax benefits.

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By Govi