Joint Home Loan Tax Benefits: Frequently Asked Questions

Updated on December 28, 20188 mins read
Joint Home Loan Tax Benefits

The primary function of a joint home loan is to increase your loan eligibility and distribute the repayment burden. This serves an easy way out for several young professionals and newly married couples who dream of owning their own house. The most noteworthy feature of joint home loans is that all co-applicants are eligible for simultaneous tax rebates for their EMI payments, stamp duty and registration fees. These deductions have a maximum limit of 1.5 lakhs for principal repayments and 2 lakhs for interest payments and this is applicable for each individual applicant, maximising the benefits manifolds. To avail these tax benefits, every co-borrower must be a co-owner of property too. Do keep in mind that the tax slabs get revised in the beginning of every financial year, this could impact your tax savings and income.

What is the best way to avail these tax benefits?

Incomes of all borrowers play an important role in maximizing tax benefits. For example, if you and your spouse earn similar incomes,then its best for you to go for 50:50 ownership of property and divide the benefits in same proportion. In case your spouse earns less than you, then you can make a higher contribution to the home loan. This will lead to better tax benefit collectively.

Several of our customers have come up with queries on the tax benefits they can enjoy by taking joint home loans. So, here are a few FAQs to help you understand the tax aspects better:

1. Can a co-applicant of joint home loan get IT benefits? What documents are required?

Yes! If a co-applicant is also a co-owner of property, then he can avail full tax benefits. For this purpose you must have the following documents:

  • House registration certificate
  • Stamp paper and registration fees receipts with names of all co-borrowers
  • Certificate of Interest from bank with names of all co-borrowers contributing to EMI
  • Legal proof of share of ownership on stamp paper

2. I have taken home loan with my wife as co-owner. Since she is a house wife, I am repaying the entire loan. So will I be eligible for tax exemption on only 50% of the home loan?

If you are a co-owner of the property and are repaying the entire loan then you will be eligible for 100% tax benefits under section 80C and section 24. These sections provide you with tax deductions of 1.5 lakhs on interest payments and 2 lakhs on principal repayments respectively.

3. Should all co-borrowers take insurance on home loan? Does it cover full loan burden?

Yes, it is best if all co-borrowers take insurance while taking home loan as in the case of any untoward incident the other co- borrowers will get burdened with paying their share of the EMI too. A loan cover will take care of their EMIs. You can take insurance while completing the documentation formalities of your loan before disbursement. There are different kinds of loan insurance covers. While some safeguard your family or other co-borrowers from paying the outstanding loan amount, others safeguard you against damages to property or burglary. Based on your preferences you can choose an insurance policy.

4. Can I and my wife become co-borrowers of a loan taken to construct a house on my father’s property? Will I be eligible for tax benefits on this loan?

Yes, you can take a loan for construction of property with your wife as a co-borrower. You can claim full tax benefits under section 80C and section 24 on your EMIs, stamp duty and processing fee.

5. Can I claim tax exemption for a property in my wife’s name, for which I am paying full EMI, since I am the deemed owner?

In this case, since the co- borrower is not a co-owner of property, he cannot claim any tax exemption. The only solution to this is if your wife executes a sale deed or gift deed in your favour to include you as a co- owner in the property. To do this, she will need to take approval from the bank. Since you are a co-borrower, the bank should hopeful have no objections.

6. Four of us plan to raise a loan from our friends and relatives to purchase a property. Will we be eligible for tax benefits from all sources?

Yes, all four borrowers will be eligible for tax benefit of up to 2 lakhs individually, under section 24 for interest payments. The principal repayments will not qualify for tax deduction as loans only from banks are eligible for such benefits. To claim this you will need to provide a certificate issued by the relatives. This will make them liable to pay tax on the income they receive from your interest payments.

7. In the case of under construction property, is it important that only co- applicants of home loan can register as co-owners of property?

Not at all! At the time of registration, one can add as many co-owners as they like, irrespective of whether or not they were co-applicants of the home loan.

8. If a property is owned by a mother who has no income and her son is salaried, can he is apply for loan?

The son can apply for a home loan only if he is a co- owner of property. The mother should preferably a co-borrower in the loan (although that is not compulsory).

9. I purchased a flat in August ’14 with my wife as a co-owner, its under construction. Can I claim tax benefits on EMI, stamp duty and registration this year?

Though you cannot claim tax deduction on EMI payments till possession of property, you can claim benefits on stamp duty and registration fee after registration of property.

10. My wife and I have a joint home loan. Can we claim 50:50 IT benefit on stamp duty and registration fees? What is the limit?

Yes, you can claim benefits on stamp duty and registration fees under section 80C up to a limit of 1.5 lakhs. Both can claim tax relief provided the payment receipts carry yours and your wife’s name.

11. Me and my my wife are co-applicant in an under construction property. Would it be possible that at the time of possession, we register the flat on her or my name only? Will it have any effect on our joint loan?

Yes, you can register the property under either of your names. The only drawback will be that either of the co-borrower who is not a co-owner of the property, will not be eligible for tax benefits on their home loan. Thus becoming co-owners is highly advisable.

12. I am the first applicant in a home loan and my father is a co-applicant. The repayment is through my father’s account but is it possible that I alone claim all the tax benefits? Both myself and my father are owner of the house.

In this case you will not be able to claim tax benefits as the Certificate of Interest will have only his name on it. To claim tax benefits you could direct EMI payments through your account or a joint account.

 13. My wife and I have 50:50 ownership of property, but I repay 60% of the EMI while she pays remaining 40%. So can I claim 60% deduction on interest and  50% on principal payments?

No, you can either claim benefits in proportion of ownership, or in proportion of contribution to EMI. One can claim 100% benefits only if the other is not contributing to EMI.

14. I have 2 properties; for first one I am the sole owner, for second one my wife is co-owner. The first property is currently self occupied and I am availing tax benefits on the same. For second one, can my wife show it as self occupied and claim tax deduction on it?

As per the law, husband and wife are supposed to stay together unless the stay in different cities. So legally it will be invalid for her to declare the second property as self occupied. For both husband and wife, if house A is self occupied, then house B has to be shown as let out/ vacant property. You can claim tax deduction only on these basis.

15. My wife and I are co-borrowers of a loan. Since she is unemployed, she will not claim tax deduction. So should I submit a declaration by her on a stamp paper or plain sheet stating the same so that I can claim full benefits?

You can claim full tax benefits as bank’s interest certificate will list you re-payer. You can self declare that you will be claiming full benefits, your wife need not submit a declaration.

16. My father and I are co- applicants of a home loan. The bank’s interest certificate lists both of us as re-payers. How can we define our share in repayment, as the bank doesn’t give separate interest certificates? How can co-applicants claim tax benefit in such cases?

A copy of the ‘Certificate of Interest’ is sufficient for interest and principal declaration. You can self declare your shares in repayment. Even if one co-applicant wants to claim 100% deduction, self declaration will suffice.

17. I have paid a pre EMI of 12 lakhs for an under construction property. I got possession in December 2014. Can we claim this interest in 5 equal installments of 2.4 each for the next 5 years? Is this amount over and above the limit of 2L. under section 24? This financial year the interest component of our EMI is 4.5 L. My wife and I will be claiming 2L each, can we claim the the additional 2.4L deduction too?

Any interest paid on loan before possession of property can be claimed every financial year from 2014-15 to 2019-20. This will be included in the maximum limit of 2 lakhs for each co- borrower. So out of your interest payments of 6.5 lakhs in this financial year, you will be able to claim tax deduction on only 2 lakhs.

Here’s a peculiar situation on of our customers found himself in;

18. I have taken a joint home loan with my father but I am not property owner, my mother and father are. To increase the loan eligibility, I am the primary loan applicant. But as a non-owner of property, I will not be able to claim tax benefits. The bank says that EMIs will be deducted from my salary account. So in this case even my father will not be able to claim tax deduction as the year end statement will have my name on it. What can I do?

You are right. Since the bank statement will show that payments have been made through your account, your father will not be able to claim tax benefits. Hence I suggest that your father can open a savings bank account through which you can direct the EMI payments. There is no compulsion to make the payments through your salary account only, you can choose which account to pay from and direct the bank accordingly. Have more queries on joint home loans? Feel free to drop them in the comments section below. We will be happy to help you out 🙂


Tarini

Tarini

Tarini comes with a degree in Mass Communication and Media studies. She joined SwitchME as a content writer and moved on to being an assistant product manager. Tarini is an experienced Content Strategist with a background in Product development and management. She is skilled in SEO, social media strategy and online content marketing and likes to travel when possible
214 COMMENTS

Have a question? Post it here and we will get back to you within 1 working day.

  1. ranjana
    Sep 19 2018 at 5:12 pm
    Reply

    I’m working employee and a coborrower and coowner of a contructed home with 50% share. However, my husband is paying all of the emi. 1) Can he get entire 100% emi amount deduction?2) if I pay back the money he has paid without any interest 10 years hence, does it make any difference to the emi claimed by my husband in the previous years?

    • Suma Ganesh
      Suma Ganesh
      Oct 03 2018 at 2:40 pm

      Hi Ranjana,
      Thank you for writing in to us
      1) You can both take benefit for 50% of the repayment each year. It is in your interest if you both take tax benefit.
      2) No, this has no bearing as such on the tax benefits claimed in the past.
      There are different ways to claim tax benefits, transfer funds between spouses etc. You will find the relevant information online or through consulting a CA.

  2. Rohit Mathur
    Apr 27 2018 at 7:07 pm
    Reply

    I have purchased a property on my mother’s name due to some family concerns in last year, at that time bank has told me you can take IT benefit but which is not possible as per IT guidelines & I have searched a lot on this. Now my mother wants to give that property to me as i’m the payer of EMI & I want to take IT benefits. all the original Docs are with Bank. how can add my name or owner of property now. please guide.

    • Suma Ganesh
      Suma Ganesh
      May 09 2018 at 8:18 pm

      Hi Rohit,
      Thank you for writing in to us.
      You can transfer ownership in two ways : (a) Execute sale deed in your favour (b) execute a gift deed in your favour
      in both cases you have to pay additional registration charges. You will need the bank’s approval for this. Since your mother was the applicant, the bank may appraise your eligibility before approving.

      Once the property is in your name, you can claim tax benefit

      You can also add your name as a co – borrower on the property and claim tax benefit

  3. Manu
    Jan 12 2018 at 1:44 pm
    Reply

    Hello SUMITA and Tarini –

    I have a question wrt claiming exemption on the interest amount on the home loan.
    My wife is a salaried individual and is a co-owner as well as co-borrower in the property.
    Our interest outgo is approximately 6 lacs per annum. However, for last 3 financial years, I have been claiming 100% of this.

    1) However, given the changes from FY 2017-2018 (limiting the interest exemption to 2 lacs), Can we now start to claim in the ratio of 50:50 from this financial year?
    2) Also, Is this limit of 2 lacs only applicable on Interest out go of current year and the carry forward interest (paid before possession, to be claimed in five equal installment) will be allowed over and above this 2 lacs?

    Thanks in advance for your response!

    Regards,
    Manu

    • Suma Ganesh
      Suma Ganesh
      Jan 22 2018 at 11:11 am

      Hello Manu,
      Thank you for writing in to us.
      That is correct

  4. Himanshu
    Jun 29 2017 at 3:43 pm
    Reply

    I have taken home loan for purchase of plot+ construction on it. my mother is borrower and i am co-borrower. My mother is owner of plot and she is house wife dependent on me.
    How can i avail tax benefit on loan as i am not co-owner of property.
    Kindly suggests.

    • Sumita Nath
      Sumita Nath
      Jun 29 2017 at 5:45 pm

      Hi Himanshu,

      Thank you for writing to us.

      Sorry to inform you that a co-applicant cannot avail tax benefit if he is not a co-owner in the property.

  5. Nabhanil Mondal
    Jun 22 2017 at 4:47 pm
    Reply

    Hi.. My wife and I are joint owners of a property. The loan is also in name of both. The EMIs are deducted through ECS from my bank account. The property is Let Out. In ITRs, we want to distribute the Income & Interest Outgo in a share of 4.2% for my wife and 95.8% for me. Is that possible?

    • Sumita Nath
      Sumita Nath
      Jul 03 2017 at 1:58 pm

      Hi,

      Thank you for writing to us.

      The property ownership rights should have been defined at time of registration and therefore the tax benefits will be availed in proportion to the ownership. If ownership proportion is not specified in the agreement then equal share of the co-owners in the property is considered.

  6. venky
    May 30 2017 at 3:43 pm
    Reply

    Hi, We have taken a property on my mother name to construct home. Already registration has been completed but still loan under process. She was the owner of property and I am co-borrower (not co-owner). I have to pay the entire repayment of loan because she is a house wife and no income. In this scenario can i avail the tax benefits? If not kindly let me the solution for this. Is it possible to change to co-owner as well.

    • Sumita Nath
      Sumita Nath
      Jun 29 2017 at 6:54 pm

      Hi Venky,

      Apology for the late revert. Thank you for writing to us.

      You cannot avail tax benefit if you are not a co-owner of the property. You will have to add your name in the property papers in order to gain the benefits.

  7. duggiralasravan
    Apr 07 2017 at 11:45 am
    Reply

    Hi,

    Currently my HL is joint with my brother but I want to add my mother name also as a joint holder and change the loan to women loan account to reduce the EMI %.Help me if me and my brother can still claim the Tax benefit even if my mother is not contributing anything for the loan.

    Aim is to reduce the emi % by adding my mother and change the loan to women loan category.

    Please do help me.

    • Sumita Nath
      Sumita Nath
      Jun 29 2017 at 5:32 pm

      Hi,

      Apology for the late revert. Thank you for writing to us.

      Yes, you can avail the tax benefit even after you add your mother as a co-applicant to your home loan.

  8. seema
    Dec 13 2016 at 4:06 pm
    Reply

    me and my husband have a joint home loan. However EMI goes from his salary. Can we both claim income tax benefit. what will be the proportion in which we can claim Principle amount and interest paid

    • Sumita Nath
      Sumita Nath
      Dec 13 2016 at 5:16 pm

      Hi Seema,

      All the co-owners can avail tax benefits on a joint home loan. Each co-owner, who is also a co-applicant, can claim the following benefits:
      Exemption of up to Rs.1.5 lakh on repayment of principal amount of home loan (Section 80C of the Income Tax Act) for each co-applicant
      Exemption of up to Rs.2 lakh on interest paid on home loan (Section 24 of the Income Tax Act) for each co-applicant.

      Proportion to claim the tax benefits would be the same as that of joint home loan.

  9. A bhayana
    Dec 02 2016 at 4:52 pm
    Reply

    Your comment is awaiting moderation.
    We have a joint property where in my wife is employed in LIC and the total housing loan from LIC HFL is 27 lacs which has got converted in cadre loan @ 5% and the EMI for the entire loan is being deducted from salary of my wife. In this case can I claim the Tax benefit under section 80C and U/S 24 of the Income tax act further the Provisional Certificate of Repayment is being issued in my Wife’s name.

    • Sumita Nath
      Sumita Nath
      Dec 07 2016 at 5:43 pm

      Hi

      Thank you for writing to us.
      If you are a co-borrower but does not contribute to EMI payment for the loan, you can claim tax benefit. You would not be able to claim tax benefit if you are not a co-borrower.

  10. Satish Kurasala
    Nov 27 2016 at 11:36 am
    Reply

    Land in my hometown is registered on my Fathers Name, Now me and my Father are thing to built a house in the Land, Thinking to take a joint home loan, what is the process so that both of us get tax exemption? Please help

    • Sumita Nath
      Sumita Nath
      Nov 28 2016 at 3:06 pm

      Hi Satish,

      All the co-owners can avail tax benefits on a joint home loan. Each co-owner, who is also a co-applicant, can claim the following benefits:

      Exemption of up to Rs.1.5 lakh on repayment of principal amount of home loan (Section 80C of the Income Tax Act) for each co-applicant
      Exemption of up to Rs.2 lakh on interest paid on home loan (Section 24 of the Income Tax Act) for each co-applicant

  11. Bhavana
    Nov 20 2016 at 8:24 pm
    Reply

    I have taken a house loan and my wife is a co-applicant. I am the sole owner of the property. She is a house wife and is not claiming any benefit. Is it possible to show the rent as a income in her IT returns and not in mine? Kindly let me know.

    • Sumita Nath
      Sumita Nath
      Dec 07 2016 at 6:20 pm

      Hi Bhavana,

      As per my knowledge, income from house property is shown in the name of tax payer who is the owner of the property. Hence, it would be incorrect to show such rental income in the name of your wife.

  12. Aroop Mandal
    Sep 26 2016 at 1:52 pm
    Reply

    Hi ! My wife and I have jointly taken a Home Loan from LICHFL. We are joint owners of the flat on 50:50 share. The EMI of the loan is deducted from my bank A/C. Till date, I have been claiming income tax exemption u/s 80C and 24. My question is can my wife also claim income tax exemption and if so, what will be the procedure? Can she pay me an amount and claim it as her contribution towards repayment of the loan ?

    • Sumita Nath
      Sumita Nath
      Sep 27 2016 at 12:01 pm

      Hi Aroop,

      Your wife can claim income tax exemption as you both are the joint owners and for that you need to file return. She can pay you and claim it as her contribution but still i would suggest you to take an advice from CA.

  13. Pavan
    Sep 19 2016 at 11:24 am
    Reply

    Hi Tarini,
    This is my scenario – I am a co-owner of a house (joint owner is my mother who is housewife) and I am the applicant of the loan as well, I am paying the complete housing loan. This house is a let out property. I am living in a rented house.
    1. Can I claim income tax deductions under both section 80c and section 24 ?
    2. Can I also claim HRA benefits for the rented house along with the above deductions ?
    3. In case of income obtained from the let out property, should I calculate it as my income which will add to my tax or calculate it as my mother’s income in which I dont have to pay tax for the let out property income. Since my mother is housewife, tax paid from my mother to this income will be less I believe ?
    Thanks

    • Sumita Nath
      Sumita Nath
      Sep 21 2016 at 4:54 pm

      Hi Pavan,

      Your queries are resolved below:
      1. You can claim tax deductions under both the sections. Under 80C, you can claim a deduction up-to Rs.150000 and there is no limit under section 24 for let out property. You can also claim deduction under section 80EE, if the value of the property purchased is less than Rs.50 lakhs and the value of loan taken is less than Rs. 35 lakhs. The loan should be sanctioned between 1st April, 2016 and 31st March, 2016.
      2. You can claim HRA benefits for the rented house along with the deductions.
      3. Yes you can claim it under your mother’s income for which you do not need to pay the tax.

  14. KJ
    Sep 03 2016 at 5:57 pm
    Reply

    Hi Tarini
    I own a house which is my wife, my mother and my name, we are currently living in it. Since my wife has left work, it is only me who is paying the entire EMI and claiming Principle and Interest rebate available. Now, i may move to a new city , my parents will continue to stay in my current house. My question is whether i will be able to claim both Home loan and HRA?

    • Sumita Nath
      Sumita Nath
      Sep 28 2016 at 12:08 pm

      Hi,

      Yes you can claim both Home loan and HRA.

  15. Anil chahal
    Aug 22 2016 at 3:54 pm
    Reply

    Hi Tarini,

    I have taken a home loan and i am getting tax benefit on it.Now i want to pay rest of the loan at once and close my Home loan completely.I just want to know should i update to my employer regarding this so they can start tax deduction on my salary from next month onward or still now i am eligible for tax benefit…

    • Sumita Nath
      Sumita Nath
      Sep 28 2016 at 2:56 pm

      Hi Anil,

      You wont be able to claim tax benefit if you close the loan and update your employer regarding this so they can start tax deduction on your salary.

  16. Kaushal
    Aug 16 2016 at 3:52 pm
    Reply

    Hello Tarini,
    My wife and self have applied for home loan from SBI- wife as first applicant, self as second applicant. Agreement is registered now she as owner and self as co-owner. Payment receipts for stamp duty and rebistratio are in issued in wife’s name. Now Camn I claim tax benifit under 80C for stamp duty , registration amount since she is housewife having no income and all EMIs will be deducted through my salary account only! Please help.

    • Sumita Nath
      Sumita Nath
      Sep 29 2016 at 12:59 pm

      Hi Kaushal,

      You can definitely claim tax benifit under 80C for stamp duty and registration amount.

  17. Palak Sehgal
    Aug 05 2016 at 1:17 am
    Reply

    Hi Tarini,
    I have one doubt. Request you to please help me out. We took a joint home loan where I was first applicant and my husband second. So we went ahead with SBI Maxgain(Women) to have lower interest rate. The property is jointly registered with no percentage of share mentioned. I worked for 3 months after the loan was sanctioned. Now I am a housewife. Full EMIs are paid by my husband only since start date as ECS is of his account. Now can my husband claim tax exemption of 100% under section 24 and 80C? The provisional interest certificate has both the names mentioned. Thanks in advance.

    • Sumita Nath
      Sumita Nath
      Sep 29 2016 at 6:07 pm

      Hi Palak,

      Yes he can definitely claim tax exemption of 100% under section 24 and 80C.

  18. Rakesh K Radia
    Aug 03 2016 at 3:00 pm
    Reply

    I have recently purchased my second home, first one is self occupied, for which I am paying 100% EMI and claiming it in my return. My question is related to second home, if I pay full EMI from my salary and claim tax benefit 100% in my account. Whether rent received from Second home can be distributed among two of us (me & my wife – who is co-owner in both cases) in ratio of 50% each, so that maximum tax benefits can be availed by me. Request to guide. Thanks

    • Sumita Nath
      Sumita Nath
      Sep 29 2016 at 4:17 pm

      Hi Rakesh,

      You can distribute the rent received from your Second Home among two of you to avail maximum tax benefits.

  19. Jyoti
    Jul 29 2016 at 5:11 pm
    Reply

    I and my husband are planning to buy a new house in 50:50 ownership. If I become a primary loan applicant and apply for 80% loan amount and he apply for 20% loan amount, then will we get more benefit in tax as I have read that a women get more benefit in taxes or we should apply for loan in 50:50 ratio? Our salaries are equal. Please give your suggestion

    • Sumita Nath
      Sumita Nath
      Sep 29 2016 at 3:56 pm

      Hi Jyoti,

      Yes, women do get more benefit in taxes so you can go ahead with 80:20 ratio as your salaries are equal.

  20. Kartikey Agarwal
    Jun 28 2016 at 1:21 pm
    Reply

    Hello,

    Here is the Scenario-
    We got the SBI MaxGain Home Loan sanctioned Apr-2016 , me & my wife co-owner & Co-brower, she is the 1st applicant.
    We got the home loan @9.5% on floating rate but recently I saw RBI reduced the interest rate. But for us its still showing same 9.5% online portal.

    My question is:

    1.Is it really reduced interest rate for the SBI home loan people?
    2.From when it will applicable & change on online portal?
    3.Or to get it change , we have to take any action?

    Kindly suggest.

    Regards,
    Kartikey

    • Tarini
      Tarini
      Jun 28 2016 at 2:25 pm

      Hey Kartikey

      Here’s a clarification to all your queries;
      1. while banks offer reduced rates to all new customers that approach them for a loan, the benefit is rarely extended to the existing customers. Further, when the latest rate cuts were introduced, RBI also introduced the MCLR system, which is different from the previously followed base rate system. So if you have taken your home loan before 31st March 2016, you will still be on a base rate system. Your home loan will not automatically go on MCLR system.
      2. So answering your second question, your home loan will not come down on MCLR on its own.
      3. Can you switch it yourself? – Yes, you can. You can do so by paying a nominal processing fees. should you change to MCLR? Its early to suggest anyone to switch to MCLR as its a new method and is still being tested out. I would suggest that you stay on base rate for a few more months and observe the MCLR system as once you switch to MCLR, you will not be able to switch back to base rate system.

      I hope this helps you make a decision 🙂

  21. GP
    Jun 13 2016 at 8:25 pm
    Reply

    Hi,

    I have a home loan with 3 additional co-owners. So in total there are 4 co-owners.All four have been paying 25% of the EMI and claiming the same(25% each) in our tax returns for past 2 years. Now 2 of the owners have decided to move out of India and hence will not be able to pay EMIs. Can the other 2 owners continue to pay the full EMI and claim 50% benefit each from this financial year ?

    All the owners are in relation with each other.

    Thanks.

    • Tarini
      Tarini
      Jun 16 2016 at 1:11 pm

      Hey GP

      Yes! The remaining 2 co-borrowers can go ahead and claim tax benefits in a 50:50 ratio, there should be no problem there 🙂

  22. satyabrat mahali
    Jun 13 2016 at 2:05 pm
    Reply

    We have a house. But it is on my mother’s name who is a house wife. I am a co-applicant of house loan. Can I apply tax benefits? Loan account is attached to my bank account.

    • Tarini
      Tarini
      Jun 16 2016 at 1:18 pm

      Hey satyabrat

      Are you a co-owner of the property? If not, then you will not be able to claim tax benefits on the EMIs being paid by you.
      A way around this is to ask your mother to add you as a co-owner of the property by executing a gift deed in your name. I hope this helps 🙂

  23. Kamal
    Jun 09 2016 at 12:48 pm
    Reply

    My wife & I had take 35 lakhs joint loan from lichfl. Now my wife, who is working in lic, is eligible for Cade loan up to 25 lakhs @5% and rest @8.5%. if she pays whole loan from salary account, then please tell me how can I claim tax benefit. Can I pay my share of loan to my wife through cheque/ECS TO GET CLAIM TAX BENEFIT OR I CANT CLAIM TAX BENEFIT.

    • Tarini
      Tarini
      Jun 10 2016 at 1:58 pm

      Hey Kamal

      Since your wife will be paying the EMIs from her account, its highly likely that the provisional interest certificate provided by the bank will have only her name on it. If yes, then you can start directing the payments from a joint account, this way the provisional certificate will have both your names on it. That should help you claim IT benefits 🙂

  24. anshul
    May 31 2016 at 11:58 am
    Reply

    Hi
    If my interest for a year for a home loan comes to 8 lakhs and its a joint loan , can both borrower can avail tax benefit of 2 lakh or more each ,under section 24 .

    • Tarini
      Tarini
      Jun 02 2016 at 6:45 pm

      Hey Anshul

      Yes! both borrowers can avail tax benefits of up to 2 lakhs under section 24 on a 50:50 basis on the entire interest amount. Since the interest amount comes up to 4 lakhs each, claiming full tax benefits should not be a problem 🙂

  25. Manoj Upadhyay
    May 28 2016 at 10:20 am
    Reply

    Hi Tarini,
    First i want to thanks to u for doing great job by helping people.

    Question:– Is 5 to 10 % ownership in property(home) enough to claim tax benefit ?

    Background:-
    We brought a old house in april-2016 with co-applicants (co-borrower) of my mother and two brothers in home loan but registration of property is in name of my mother’s only & we three brothers are paying EMI. so we can not avail tax benefit due to non-ownership in property. Now we r planning to make sale deed or gift deed to include our name in property. It will cost us in Gujarat 5-6 %( stamp duty & registration charges) of property value (20, 00000).

    What minimum % ownership should we take so that minimum stamp & registration charge will apply?
    What other formalities we have to do to avail tax benefit?

    Please Help……..

    • Tarini
      Tarini
      Jun 03 2016 at 3:36 pm

      Hey Manoj

      Thank you for the appreciation, we are always happy to help! 🙂 Regarding your query, yes! As long as you are a co-owner of the property, irrespective of the value of share you hold, you will be eligible for claiming tax benefits on the EMI payments made by you. Please make sure that;
      1. the ratio of claiming tax benefits on the EMI, among all the co-owners is specified on a separate stamp paper. This will help you claim tax exemption in the desired ratio/ in the ratio of your actual contribution to the repayment.
      2. the provisional certificate provided by the bank, lists your name as a contributor to the EMI payments.

      I hope this information has been helpful 🙂

  26. Kartikey Agarwal
    May 09 2016 at 12:28 pm
    Reply

    Hello Tarini,

    Thanks all the information given above.
    I need your help to clarify my doubts & as I am hearing different answers/suggestion from different people:
    Here is the Scenario-
    1.We have purchased a under-construction property & will get the possession in Dec-2016.
    2.We got the SBI MaxGain Home Loan sanctioned Apr-2016 , in that my wife is 1st Applicant & I am 2nd Applicant.
    3.Me & my wife both are working , She is on Lower salary package then me.But Full EMI paid by my wife through her Salary A/C.
    Below are my Questions –

    • Soni Singh
      Soni Singh
      May 16 2016 at 3:44 pm

      Hey Kartikey

      I understand your scenario. Let me know the questions that you have as it is not reflecting in the message that you have sent me.

    • Kartikey Agarwal
      Jun 03 2016 at 1:28 pm

      I am not sure why you are not able to see my questions.. This is the 2nd time I am posting the same. Pls Help:

      Hello Soni & Tarini,

      Thanks all the information given above.
      I need your help to clarify my doubts & as I am hearing different answers/suggestion from different people:
      Here is the Scenario-
      1.We have purchased a under-construction property & will get the possession in Dec-2016.
      2.We got the SBI MaxGain Home Loan sanctioned Apr-2016 , in that my wife is 1st Applicant & I am 2nd Applicant.
      3.Me & my wife both are working , She is on Lower salary package then me.But Full EMI paid by my wife through her Salary A/C.

      Questions –
      1.As the Full EMI is deducted from her salary , Can we both avail the tax benefits?
      2.As she is on lower salary package. Is it possible to divide the ratio 80:20 for tax exemption , 80 for me & 20 for my wife?
      3.Also I am not aware , where & to whom I need to declare this ratio & how? Please suggest.
      4.Is all the Tax Saving section 80C , 24 & 80EE(Newly Introduced) divide in same ratio(80:20) ?
      Kindly suggest.

      Regards,
      Kartikey

    • Tarini
      Tarini
      Jun 03 2016 at 2:21 pm

      Hey Kartikey

      I apologize for the inconvenience caused to you. Its probably a technical error that’s caused the problem, we will have someone from our tech team look into it. I will try my best to provide you a satisfactory insight into SBI Maxgain, here we go;
      1. Since the EMI is deducted from her account, the Provisional Certificate provided by the bank will have only her name on it. Hence only you will not be eligible to claim any tax benefits on the home loan. If you both wish to claim tax benefits, I’d advise you to open a joint account with SBI and direct all your EMI payments through it. This way the Provisional certificate provided by the bank will have both your names on it.
      by attaching the certificate along with your IT returns, both will be able to claim tax benefits on a 50:50 basis on the entire EMI amount.

      2. Yes, it is possible to divide the ratio for tax exemption in a ratio of 80:20. you will need to draw up an agreement on a stamp paper which states that both co -borrowers are willing to claim IT benefits in the specified ratio. You will need to attach this agreement along with the Provisional certificate.

      3. The stamp paper can be registered in the office of a Magistrate and you’ll be good to go 🙂

      4. Yes. this ratio will be applicable to all the sections of the Income Tax Act under which you are claiming taz rebate. For example, if you are claiming a tax rebate under section 24 on the interest component of your EMI, then your wife will be eligible for rebate on 20% of the interest amount paid and so on.

      I hope this is helpful, do feel free to write in with any further queries. Have a nice day ahead! 🙂

    • Kartikey Agarwal
      Jun 03 2016 at 5:26 pm

      Hello Tarini,

      Thanks for the advice.
      As we have taken joint Home Loan , so SBI has given provisional certificate on both of us name which includes annual interest & principal repayment.

      Question:
      1. So if I have provisional certificate on both of us name , then why it is required SBI joint a/c for EMI deduction.?
      2. Or in case if we do so , do we need to cancel ECS or something ? How to get our joint a/c linked for EMI deduction ?
      3. Also if I declare it 80:20 ratio now , can it be possible to change the ratio in future?

      Regards,
      Kartikey

    • Tarini
      Tarini
      Jun 04 2016 at 7:03 pm

      Hi Kartikey

      You’re welcome! 🙂 Regarding your follow up queries:
      1. If SBI’s provisional interest certificate already has the name of both co-borrowers, then there is no need to open a joint account.
      2. However, if you do go ahead with opening a joint account anyways, you will need to put in a written request with SBI to cancel ECS from the existing account and ask them to make ECS deductions from the joint account.
      3. Yes, it is possible to change this ratio in future, you will need to follow the same procedure to do so.

      I hope this is helpful, do let me know if you have any further queries 🙂

  27. jayesh varma
    Apr 17 2016 at 11:19 am
    Reply

    I have taken loan for repair of House fully owned by my wife.Wife has no income.Am I eligible for IT benefits?

    • Soni Singh
      Soni Singh
      Apr 25 2016 at 5:12 pm

      Hi Jayesh

      If you are the co-applicant in the loan taken by your wife and paying the EMI then you are eligible for tax benefits.

  28. Yamini
    Feb 18 2016 at 10:47 pm
    Reply

    Me and my husband has taken joint home loan to buy a house. We both are co-owner and co-borrower. Joint home Loan has both names i.e. me and my husband. I am paying the full EMI and it is being paid from my account.
    To submit investment proof in company Bank has issued provisional certificate under both names. There is no ownership ratio in sale deed, nor we have any agreement that I can claim full 100% benefit.
    Now we are in process of divorce. And my husband is claiming 50% tax benefit, though I am paying the full EMI which is deducted from my account. And my husband is not paying at all towards home loan repayment.

    My question is Can I claim 100% tax benefit when I do not have ownership ratio in sale deed, nor I have any agreement that I can claim full 100% benefit ?

    • Tarini
      Tarini
      Feb 22 2016 at 3:42 pm

      Hey Yamini

      This is a very tricky situation as you will be able to claim full tax benefits only if your husband (co-borrower) gives you an NOC stating that he has no objection to you doing so.
      Another way of doing this is by executing a declaration on stamp paper that the ratio of paying EMI between teh 2 co-borrowers is 100:0 and will remain so until the completion of home loan repayment. Once your husband signs this, you will be able to claim full tax benefits. I hope it works out for you.

  29. saleem
    Feb 18 2016 at 6:52 pm
    Reply

    Hai… thanks in advance
    My mother has availed home loan, she is a widow and no income , the property is in her name. Iam the eldest son having govt job and repaying the EMI+int. Can I get a relief on income tax

    • Tarini
      Tarini
      Feb 19 2016 at 2:35 pm

      Hey Saleem

      Since you are not a co-owner of the property, you will not be able to claim any tax benefits on the EMIs being paid by you :/ The only way out of this is by getting your mother to add you as a co-owner of the property. For doing so, your mother will have to take an NOC from the bank and then she can execute a gift deed in your name to add you as a co-owner. I hope this helps.

  30. Nilesh kale
    Feb 18 2016 at 9:53 am
    Reply

    Hi Tarini,

    I have submitted my IT declaration in my office but now my Account team asking for NOC from co-applicant. So could you help me with how to write the NOC letter.

    Kindly help.

    Thanks,
    Nilesh Kale

    • Tarini
      Tarini
      Feb 19 2016 at 2:21 pm

      Hey Nilesh

      Its a simple letter stating that; “I have no Objection to my co-borrower claiming 100% tax benefits on the home loan jointly held by us”. Please ask your company HR to provide you a proper format as they may have some additional requirements.

  31. Girish Malhotra
    Feb 15 2016 at 10:20 pm
    Reply

    Hi Tarini,

    I have a query, I and my brother opted for a House in Mumbai and availed a loan with me as a co applicant, However I am not the co owner. I say this because at the time of application I remember some document that I was asked to sign by the bank representative stating I would not have any ownership rights on the said property. However my query is can I have a similar kind of document signed by my brother stating insolvency of the Loan? how should I go about?

    Can you share a sample of the Document that I can get signed.

    • Tarini
      Tarini
      Feb 17 2016 at 3:11 pm

      Hey Girish

      This is strange, if you are a co-owner of the property, then you have all the legal rights to it. No bank can revoke ownership rights of their borrowers. Please check with your bank again as to what is the exact implication of the document that you have signed and why was your brother not asked to sign the same document. Do let me know how it goes. This information will help me guide you better. Thanks.

  32. Subramanian R
    Feb 13 2016 at 4:08 pm
    Reply

    Sir .. My wife is the co-owner of the house which I have bought. I have taken a joint home loan with her. Since she is working she would like to claim 100% tax benefits as well. The EMI be sourced from our joint account only . I would like to know whether she will be able to claim tax benefits Or Any declaration has to be submitted from husband side. Pls help. Thanks.

    • Tarini
      Tarini
      Feb 17 2016 at 3:22 pm

      Hey Subramanian R

      There should be no problem here, your wife can easily claim 100% tax benefits on the home loan. All she needs to do is attach the Provisional Certificate provided by the bank along with her IT returns. Hope this is helpful 🙂

    • Subramanian R
      Feb 17 2016 at 4:48 pm

      Thank U Ms. Tarini. This is helpful to us.

    • Tarini
      Tarini
      Feb 19 2016 at 1:20 pm

      You’re welcome Mr. Subramanian, do feel free to post any further queries 🙂

  33. NIRMALA PANDIT
    Feb 08 2016 at 4:39 pm
    Reply

    I have purchased one flat by availing home loan .My husband is a co-applicant only as the EMI is being paid by me.Deed is in both name.
    Now I want to rent the flat and deposit the rent amt.in loan a/c. Do I require permission from my husband
    Please reply
    NIRMALA

    • Tarini
      Tarini
      Feb 08 2016 at 5:54 pm

      Hey Nirmala

      no, there is no need to take permission from your husband for depositing the rent amount in the loan account. You can simply put the additional amount in the account.

    • Shreyas Mehrotra
      Feb 08 2016 at 8:22 pm

      Hi.. My wife is the co-owner of the house which Inhave bought. I plan to take a joint home loan with her. Since she is working would like her to claim tax benefits as well. Can the EMI be sourced from my account only and she still be able to claim tax benefits or does it necessarily have to be a joint account. Pls help. Thanks.

    • Tarini
      Tarini
      Feb 09 2016 at 2:46 pm

      Hey Shreyas

      To claim tax benefits on the EMIs, you will need to ensure that the provisional certificate provided by the bank mentions both your names on it. The easiest way to ensure that is to direct all the payments through a joint savings account. So while there is no compulsion, its a convenient way to ensure that both are easily able to claim tax benefits. I hope this helps 🙂

  34. venki
    Feb 03 2016 at 1:57 pm
    Reply

    Hi, This is a query from my client.. if i pay full emi for the housing loan and wife is the owner of property can i claim benefits. for last 3 years have submitted the proof of paying emi in my company and got tax deduction. This year the company asked to produce the ownership certificate and as the house is in my wife name i cant claim was the response. What is the solution and what happens to my ;last 3 year deduction already made. Thanks in advance.

    • Tarini
      Tarini
      Feb 08 2016 at 1:35 pm

      Hey Venki

      Since your client is not a co-owner of the property, he is not eligible for any tax benefits on the EMIs paid by him. Once the income tax dept is notified of this error, all teh deductions made over the last 3 years will be reversed. I hope this helps.

  35. diwakar
    Feb 01 2016 at 3:16 pm
    Reply

    Hi Tarini

    First of all many thanks for such a useful and informative article. 🙂

    My question is

    I have recently bought a flat in me and my wife name under joint ownership and 100 % loan amount is paid by me as my wife is a housewife .This property is rented out and 100 % income from house is received by my wife on her account. A rent agreement has also been executed in her name. She is not employed and is not filing any return.

    Can I can claim interest upto 2 lakh under my name by showing negative income from property as all the rent is been taken by my wife and i am not having any income from the house but i am paying the loan interest .

    • Tarini
      Tarini
      Feb 08 2016 at 1:32 pm

      Hey Diwakar

      Thank you for the appreciation, we’re always happy to helps.
      Regarding your query, yes, you can go ahead and claim 100% tax benefits on the EMIs paid by you, while you can continue to show rental income under your wife’s name 🙂

    • diwakar
      Feb 08 2016 at 4:25 pm

      Many thanks for the Info Mam 🙂

    • Tarini
      Tarini
      Feb 08 2016 at 5:52 pm

      You are welcome 🙂

  36. Danish Siddiqui
    Feb 01 2016 at 12:17 pm
    Reply

    Hi

    I have a housing loan which is co-owned by me and my wife. Now we are living in a different city and that house is a let out property. I have a few questions on the same

    1. Can i Claim the 100% tax deduction as I am paying the entire housing loan ?

    2. Can i show the rental income in my wife’s tax return and not show anything in my return ? Is it possible under income tax act ? As my wife is not employed and she will be in a lower tax bracket than I am

    Thanks

    Danish Siddiqui

    • Tarini
      Tarini
      Feb 08 2016 at 1:15 pm

      Hey Danish

      Here’s a clarification to all your queries:
      1. Yes! You can go ahead and claim 100% tax deductions on the EMI payments.
      2. Yes, you can show the rental income in your wife’s returns, that should not be a problem.
      I hope this helps 🙂

"Here's what the world is saying about SwitchMe!"