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. Sachin
    Jan 28 2016 at 3:58 pm
    Reply

    i have a property in the joint name with my wife. We have have a joint home loan but % is not defined. The question is that we are paying the interest of almost 3L PA. can both of us claim the tax benefit on interest of 2L each.

    • Tarini
      Tarini
      Feb 08 2016 at 1:50 pm

      Hey Sachin

      Since you have not defined the ratio of holdings in your joint home loan, it is assumed to be a 50:50 ratio. So each of you can claim tax benefits on 50% of the payments made.

    • Mei
      Feb 21 2016 at 2:13 am

      Tarini,

      First of all Thanks for the valuable information. It’s very much useful.

      I have a question with above reply as my case is similar to this. Property is with joint name and also EMI is through join account my self and my wife and there is no ratio mentioned. My wife is not working and she is not going to claim anything. In this case If I want to claim, still 50% rato is applicable or I can claim 100% of interest/principal. Please clarify. Thanks.

      Regards,
      Mei

    • Tarini
      Tarini
      Feb 22 2016 at 3:20 pm

      Hey Mei

      Since you are the only co -borrower paying the EMI, you can go ahead and claim 100% tax benefits on the EMI payments. You can simply attach the provisional certificate along with your IT returns and attach an NOC from your wife (if needed), stating that she has no objection to you claiming tax benefit on the entire EMI. I hope this is helpful 🙂

  2. Naren
    Jan 22 2016 at 8:20 pm
    Reply

    Hi,

    I have three home loans on same property, can I claim tax exception on all three loans.
    I have gone for home loan multiple times due to insufficient funds during construction.

    Thanks,
    Narendra

    • Tarini
      Tarini
      Jan 25 2016 at 2:33 pm

      Hey Naren

      Legally, its not allowed to take 3 home loans on one property. Are you sure you have 3 home loans? Or is it one home loan and 2 top up loans on the property? Do get back to me, this will help me guide you better 🙂

  3. RanjithKumar
    Jan 22 2016 at 12:49 am
    Reply

    Hi Tarini,
    I don’t have any Home Loan or any Component to show under my 80c. My Father has a home loan where he took the loan in 2010 and he is the only owner of the property. He pays the monthly EMI by directly going to the bank branch. so now can i show that loan under my 80c for tax benifit,,if no is the answer what was the best suggestion that you give me.

    Thanks in Advance!!!

    • Tarini
      Tarini
      Jan 25 2016 at 2:12 pm

      Hey Ranjith

      You will not be able to claim tax benefits on your father’s home loan as you are not a coborrower and cowner of the property. Since you don’t have any expenses that fit under the specifications of IT benefits under section 80C, there isn’t much that you can do here.

  4. rashmi
    Jan 20 2016 at 8:19 am
    Reply

    Hi Tarini,

    I saw your comments, they are very helpful. Here are my questions

    1) My husband and I are co-borrowers and co-owners for a flat in Pune. Now I realize, all payments are directed through his individual account towards EMI , but he is not claiming any deduction on income tax. However since I am the co-owner can I claim 100% on principal and interest deduction in my IT returns? The provisional certificate from HDFC includes both our names. Or should I transfer the amount to him to the extent of EMI payment?

    2) My husband has made a lump sum payment for pre paying home loan this year. Again, he has not claimed this as I have chosen 100% share. Can I claim the same though these payments are not directed from my account.

    3) We live in Mumbai. Flat in Pune is let out on rent. The rent is deposited into my account and I pay rent in Mumbai. So, I am showing income from property and claiming HRA too. Guess this is allowed.

    Looking forward to hear from you !! Thanks in advance.

    Regards
    Rashmi

    • Tarini
      Tarini
      Feb 08 2016 at 3:30 pm

      Hey Rashmi

      Thank you for the kind words, regarding the query:
      1. Yes. you can claim tax deductions on the entire EMI as by attaching the provisional certificate along with your IT returns. However, you will also need to specify on a stamp paper that you are paying 100% of the EMI as the certificate mentions names of both the borrowers. Please attach he same along with a copy of the Provisional certificate.

  5. Prashant
    Jan 18 2016 at 3:10 pm
    Reply

    Hi Tarini,
    I have purchased my 1st home in 2010 and I am sole owner for the same. I am availing tax benefits on the same till date.
    In 2014 I had book another flat jointly with my wife. She is main applicant & I am co applicant for that. Received possession of 2nd flat in Sept 2015 and till date its vacant.
    Now My Queries is that
    1) As I want to show 1st property as self-occupied and 2nd new property as deemed let-out. Please guide me how many months let-out period I can show?
    (Possession in Sept 15 hence, Oct-2015 to March 2015 = 6 Months or full 12 Months)
    2) If loss due to property amount goes above 2 lack Limit, can I get benefit of all that exceeded amount or only till 2 Lac cap.

    • Tarini
      Tarini
      Jun 28 2016 at 4:56 pm

      Hey Prashant

      I apologize for the delay in responding to your query, here’s a clarification to the same:
      1. you can start with showing a let out period of 11 months as that’s the typical duration of any rent agreement. You will need to start the date of let out from, after you got possession of the property. It need not necessarily be only till March 2015, you can show full 12 months.
      2. You will be able to claim tax benefits only up to the upper cap of 2 lakhs.
      I hope this information is still useful to you. Do let me know if I can assist with anything else.

  6. Amit J
    Jan 14 2016 at 5:01 pm
    Reply

    Dear Tarini,

    In point 15 above, for the statement “bank’s interest certificate will list you re-payer”, I would like to know a little bit in my situation.

    Scenario –
    1) My wife is Owner and I an a Co-owner of a Flat.
    2) My Wife is First Applicant and I am Co-applicant in SBI Home Loan.
    3) SBI Loan was sanctioned considering my eligibility, as my wife’s salary doesn’t come under IT Tax Bracket.
    3) I am paying 100% EMI and it is routed via an SBI Joint Account of ours (I am primary Holder of that SBI SB A/C).

    Question –
    – Will bank’s interest certificate will list only me as re-payer? (or both of us, as EMI is diverted via Standard Instructions from a Joint Account only)
    – Do I need to collect it from Loan Branch of SBI ?

    Thanks in advance !

    Regards
    Amit J

    • Tarini
      Tarini
      Jan 27 2016 at 4:57 pm

      hey Amit

      Since you are routing all your EMI payments through a joint account, the Provisional Certificate (interest certificate) provided by SBI will list both your names. As you are teh only one actually paying the EMIs, you can go ahead an claim 100% tax benefits on the payments.
      The certificate can be generated online, there in no need to visit the branch for this.
      I hope this helps! 🙂

  7. anand
    Jan 13 2016 at 8:38 am
    Reply

    Hi,

    Recently I have purchased a second home .
    Me and My wife have taken loan from SBI.
    MY wife is a housewife and I will be repaying the EMI.
    I will be renting out this second home for Rs 20,000
    Question:

    1) While I’m paying 100% EMI – I will be getting complete tax benefit on the interest – However for declaring the rental income – Can I have a rental agreement stating the breakup of the rent paid to me and my Wife – say 30% for me and 70% for my wife?

    In that way I would be declaring Rs 6000 as monthly rent – for a yr it would be 72000.

    total Tax benefit will be – Interest paid – ( Rental income – 30% deduction)?

    Regards
    Anand

    • Tarini
      Tarini
      Jan 27 2016 at 5:01 pm

      Hey Anand

      Here’s a clarification to all your queries:
      1. Yes, you can go ahead and break up the rental income in any proportion you like, between you and your wife provided your wife is a co owner of that property too.
      2. You will be able to claim a tax benefit of up to Rs. 2 lakhs, combining your rental income and interest payments.
      I hope this helps 🙂

  8. Prashant
    Jan 11 2016 at 6:30 pm
    Reply

    Hi Tarini,
    I Have some queries as below,

    I am a sole owner of my 1st property purchased in 2010. Till date I am availing tax benefit on that property. Now I purchased second flat in which my wife is main owner and I am co applicant. possession received in July 15
    Now Query is:
    1) Which property I can I show 2nd property as occupied as I am just shifted in 2nd property.
    2) No property is not let out till date. So how can I calculate “deemed as rented out” value for my any one property? for tax purpose.
    3) I got possession in July 15, so for rent Income (deemed as rented out) calculation, how many month I need consider?

    • Tarini
      Tarini
      Jan 27 2016 at 5:04 pm

      Hey Prashant

      Here’s a clarification to all your queries:
      1. Yes, you can go ahead and show your Second property as self occupied.
      2. You will not be able to do so as for that you will have to show actual rental income being credited to your account every month.
      3. The reply to your second questions covers this question as well.
      I hope this helps 🙂

  9. AP
    Jan 11 2016 at 5:55 pm
    Reply

    Hi Tarini,

    I bought a under construction flat in 2010 and started paying EMI from August, 2010. I got the registry done for this flat on March, 2013. But, project got delayed and I got the actual possession on May 2014 and started living this house from April, 2015.

    My question is – am I eligible for pre-construction till May 2014 (the month of possession) or Registry (March, 2013). If any property takes more than 3 years to construct then what would be the process of getting pre-construction tax benefit.

    thanks in advance.

    • Tarini
      Tarini
      Jan 18 2016 at 1:33 pm

      hey AP

      If a property takes more than 3 years to get constructed, then you will not be able to claim tax benefits on the EMIs paid before possession. I hope this helps 🙂

    • Amit J
      Jan 18 2016 at 1:54 pm

      Hi Tarini,

      Request you to kindly clear my doubts on the below query.

      My wife is Owner and I am a Co-Owner of an under-construction flat.
      My wife is 1st Applicant and I am Co-Applicant of SBI Home Loan.
      Loan is sanctioned based on my eligibility and I am paying 100% EMI, which is getting diverted from a SBI Joint Account (where I am Primary Holder and My Wife is Secondary Holder).

      Query –
      1) Will the bank, be giving “interest certificate” or “provisional certificate”,
      – in my name
      – or in my wife’s name
      – or both of our name will be mentioned
      (as the EMI is getting diverted from a Joint Account…)
      2) If both of our name is mentioned, then, is there any specific step I need to take to show the 100% EMI in my name ?

      Thanks,
      Amit J

    • Tarini
      Tarini
      Jan 18 2016 at 2:07 pm

      Hey Amit

      Here’s a clarification to all your queries:
      1. since the EMIs are being paid through a joint account, the provisional certificate provided by the bank should mention names of both the account holders.
      2. No, you don’t need to take any measures to show that you are paying full EMI. You can simply just attach the privisional certificate along wit your IT returns and claim full tax benefits on your EMI payments.
      I hope this helps 🙂

    • Amit J
      Jan 18 2016 at 2:51 pm

      Hey Tarini,

      Thanks a Ton for the help 🙂 Yes definitely, the replies clarified my queries.

      Thanks,
      Amit J

    • Tarini
      Tarini
      Jan 18 2016 at 2:55 pm

      Hey Amit

      We’re always happy to help! 🙂

  10. AP
    Jan 11 2016 at 5:43 pm
    Reply

    Hi Tarini,

    I and my wife co-own the flat on which we both are residing with my parents. I am paying the home loan EMIs. My wife is homemaker.

    I know I can claim tax benefit for this loan. but my question is – Can I claim HRA as well by paying the 50% rent to my wife (as she co-owned this house with me).

    Thanks is advance for your help

    Thanks,
    AP

    • Tarini
      Tarini
      Jan 18 2016 at 1:24 pm

      Hey AP

      No, you will not be able to claim HRA due to the following reasons:
      1. You cannot claim HRA on the same property as the one on which you are claiming IT deductions for your home loan.
      2. You cannot pay HRA to your wife as you are legally required to stay under the same roof.
      I hope this helps 🙂

  11. Rohit
    Jan 07 2016 at 5:05 pm
    Reply

    Hi Tarini ,

    I have owned one property . Recently i bought another property for which me and my wife are co owner as well as co-borrower. Can we both get tax benefits on Stamp duty and registration? at what proportion ? and what doc we need to submit to avail the benefits on tax exemption ?

    • Tarini
      Tarini
      Jan 08 2016 at 3:15 pm

      Hey Rohit

      Yes, both of you can claim tax benefits on stamp duty and registration, please make sure that both of your names have been mentioned on the receipts.
      To avail tax benefits you just need to attach a copy of the receipts with your tax return 🙂

  12. Biswa
    Jan 06 2016 at 3:38 pm
    Reply

    Hi,

    1. Me and my wife are co-owners of a flat, as mentioned on sale deed and other documents. Home loan also taken as wife as co-owner, But I am paying the EMI from my savings account. As I understood form this is my wife will not be able to claim the tax exemption on any component of principal or interest paid. Is there any way I can approach the bank to change EMI to be paid for both of our saving account. So that both of us can claim tax exemption.
    2. Still I am not aware of what is the legal document of ownership ratio, as I want to share EMI 70:30 with my wife. So that it fits our requirement for claiming tax exemption.

    Biswa Prakash

    • Tarini
      Tarini
      Feb 08 2016 at 5:02 pm

      Hey Biswa

      If you and your wife are both co- owners and co-borrowers then you can easily claim tax benefits. Here’s what you need to do:
      1. Put down the ratio of ownership of the home loan on a stamp paper, mentioning a ratio of 70:30 between you and your wife.
      2. Next, you need to make sure that the provisional certificate mentions both your names. You can start routing the EMIs through a joint account for the same.
      3. Attach a copy of the stamp paper declaration and the provisional certificate with both your tax returns to claim benefits 🙂

  13. Jibin
    Jan 05 2016 at 7:18 am
    Reply

    Hi Tarini,

    I am repaying for the housing loan taken by my family. Property is in the name of my father and mother is a co applicant while I am just a guarantee for the loan ( Not a co owner or co applicant ) and I pay the EMI.

    Can I claim the tax benefits since I am the one paying for it ?
    Will my Bank statements be good enough as a proof of payment ?

    • Tarini
      Tarini
      Jan 06 2016 at 3:40 pm

      Hey Jibin

      While your bank statements will serve as proof of payment, you will not be able to claim tax benefits as you are not a co-owner of the property.

  14. Rachna
    Jan 04 2016 at 11:28 am
    Reply

    Hi Tarnini. Could you please clear my query.

    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 not availing any tax benefits on it as we had already repaid home loan on it. For second one, I am showing it as let out and I am claiming interest of home loan on it. My question is Can my wife claim principal deducted on this home loan or Can I also claim principal on it.

    • Tarini
      Tarini
      Jan 06 2016 at 3:50 pm

      Hey Rachna

      Both of you can claim tax benefits on the interest and principal amount being paid by you up to a limit of 2 lakhs for the interest and 1.5 lakhs for the principal amount, individually. So collectively you can claim a total of 7 lakhs in tax benefits for your EMI payment for the second home.
      To claim the benefit, both will have to attach a copy of the certificate provided by bank which mentions both your names as co -borrowers.

  15. Robin
    Dec 30 2015 at 9:57 am
    Reply

    Hi

    I have purchased house in July 2015, started paying loan EMI in Aug 2015 and got possesion in Dec 2015. Can I claim for tax benifits for EMI paid from Aug till Dec for this house loan?

    Regards
    Robin

    • Tarini
      Tarini
      Jan 06 2016 at 2:40 pm

      Hey Robin

      You can claim tax benefits only on the interest payments made until possession of property. Post possession, you can claim tax benefits on the full EMI. I hope this helps 🙂

  16. Uttam Kumar Panda
    Dec 29 2015 at 4:16 pm
    Reply

    My father and I are the applicants of a home loan. I am as second applicant. The property is in my father’s name. The mortgage paper was signed by my father and I was as witness. I am the only child of my parents. My father does not have income. I am paying the EMI. The bank’s interest certificate lists both of us as re-payers. As a co-applicant and non-ownership in the property at present, can I claim tax benefit? If yes, how much?

    • Tarini
      Tarini
      Jan 06 2016 at 2:46 pm

      Hey Uttam

      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 :/
      To be able to claim tax benefits, your father will have to add you as a co-owner of the property by taking prior permission from the bank. He can do so by executing a gift deed in your name on stamp paper and getting it registered. I hope this helps 🙂

  17. Manoj Thangaraj
    Dec 22 2015 at 4:10 pm
    Reply

    Hi Tarini,

    My mother is the owner of our house property.My father and mother as a co-applicant has availed housing loan.
    I am the eldest son of my parents having salary income. Both my parents do not have income except rental income. I wish to take tax benefit by paying EMI of our housing loan.Kindly give your input,if I can request the bank to include my name as co-applicant for loan and avail tax benefit from Interest certificate as Co-applicant.

    • Tarini
      Tarini
      Dec 23 2015 at 4:21 pm

      Hey Manoj

      While you can request your bank to add you as a co applicant, its unlikely that they will agree to it. Further even if they do, you will have to pay the entire processing fees and other charges again. So I suggest that you weigh all the costs and benefits involved in the entire process before making the decision.

  18. Yogini
    Dec 21 2015 at 10:36 pm
    Reply

    Hi Tarini,

    Could you please clear my below queries:

    1. I and my husband are joint owners of flat and home loan. Flat is under construction possession may be in jun 2016. We haven’t explictly mentioned ratio of share anywhere. We have paid registration and stamp duty in sep 2015, but on registration receipt, only my husband’s name is present. My name is not present in that receipt. On Index II, names of both of us are present. My husband is not going to claim for tax exemption. I want to claim it. Am i eligible to claim exemption for stamp and registration fees even if my name is not there on receipt. But i am co-owner of flat. What supporting docs i can provide? Please suggest.

    2. Can i claim exemption for principle amount if we haven’t got possesion?

    Thanks.

    • Tarini
      Tarini
      Dec 23 2015 at 4:16 pm

      Hey Yogini

      Here’s a clarification to all your queries:
      1. unfortunately, since your name is not on the stamp duty payment receipt, you will not be able to claim tax exemption on this. Even though you are a co-owner of the property, exemption can be claimed only if your name is mentioned on the receipt.
      2. You will not be able to claim tax exemption on the principal amount as its an under construction property. Once you get possession, you will be bale to claim tax benefits only on the interest component in 5 equal installments over the next 5 years.
      I hope this helps 🙂

  19. kejal
    Dec 21 2015 at 5:58 pm
    Reply

    HI,

    SINCE MY FIRST HOUSE IS LOAN FREE.

    SO, IS LOAN FOR MY SECOND HOUSE IS CONSIDER AS “SECOND HOME LOAN” OR “FIRST LOAN FOR SECOND HOUSE” ?

    PLEASE EXPLAIN THE TAX BENEFITS ACCORDINGLY.

    1)HOW MUCH TAX BENEFITS I GET ON REPAYMENT OF PRINCIPAL PORTION ? (AS LOAN IS FOR MY SECOND HOUSE AND MY FIRST HOUSE IS LOAN FREE)

    2)HOW MUCH TAX BENEFIT I GET ON PAID INTEREST PORTION ? (like a rebate of 2 lac cap or rebate of total paid interest.)

    THANK YOU

    • Tarini
      Tarini
      Dec 23 2015 at 4:31 pm

      hey Kejal

      Here’s a clarification to all your queries:
      1. It will be considered as your first home loan.
      2. You will be eligible to claim tax benefits of up to 1.5 lakhs on the principal component and up to 2 lakhs on the interest component for any given financial year.

  20. Anil Vashisht
    Dec 21 2015 at 1:58 pm
    Reply

    Hi Tarini,

    I have a few questions.

    1. I am buying a house in my mothers name but all the home loan repayment will be done by me as she is a homemaker. I am adding her as a co-applicant in the loan. Can I take tax benefit in this scenario or I have to be co-owner as well to get the benefit.

    2. My parents would be occupying the house as I am living in different city. Can I get HRA on the rented flat in my city along with the tax benefits.? If No, can you please tell me how can I get both the benefits.

    Please reply.

    Regards,
    Anil

    • Tarini
      Tarini
      Dec 23 2015 at 4:33 pm

      Hey Anil

      Here’s a clarification to all your queries:
      1. To be able to claim tax benefits, you will have to be a co-owner of the property too.
      2. Yes, you can also claim HRA for the rented property that you will be staying in.
      I hope this helps 🙂

  21. Pearl
    Dec 18 2015 at 9:59 am
    Reply

    I became co-owner with my would be father in law for a flat to avail a home loan. 2/3payment has been made and we need the remaining amount- approx 20-25 lakhs . All the banks we hav approached hav refused saying we are not blood relations. One bank agreed but the project is not listed in their list of approved projects. We are desperate to get a loan as the last instalment is overdue by a month already and time is running out. How can we get a loan. What other options do we hav if not a home loan? For some reason my fiance cannot become co owner.please help.

    • Tarini
      Tarini
      Dec 24 2015 at 7:50 pm

      Hey Pearl

      I apologize for the delayed reply and inconvenience caused to you. Regarding your query; most of the banks refrain from lending to co -borrowers who aren’t related by blood or matrimony. I believe the best option that you have is to go with the bank that has agreed to give you a home loan. While verification of the builder and property may take some time, this is the best option to go with. I would strongly advise you against taking a loan from a private lender or small chit funds etc as those are highly risky and will charge a very high interest rate.
      I hope this helps!

  22. RKG
    Dec 18 2015 at 9:21 am
    Reply

    I and my brother have taken home loan as co-applicants and also as co-owners. Now the loan is closed. We are staying in separate rented houses and our parents are staying in our own house for which we had taken home loan.

    As we are staying in rented houses can we claim HRA tax benefit now? However loan is already closed and not claiming any home loan benefits (but previously we were claiming it). Could you please confirm is it allowed as per IT rules?

    • Tarini
      Tarini
      Dec 24 2015 at 8:18 pm

      Hey RKG

      Yes, both of you can go ahead and claim HRC on the rented properties, there is no breach of IT rules and regulations here 🙂

  23. Sushma N
    Dec 13 2015 at 11:28 am
    Reply

    Could you please clear my query.

    Myself & my husband taken house loan about 40 lakh, but the property in my name only, will he become the co-owner of the property?. we both paying EMI for loan. how can we get get tax benefit for this.

    • Tarini
      Tarini
      Dec 14 2015 at 2:26 pm

      Hey Sushma

      Since you are the sole owner of the property, your husband will not be able to claim any tax benefits on the EMI payments. To avail tax benefits on his EMI payments too, you will need to add him as a co-owner of the property. You can do so by issuing a gift deed in his name, however you will have to take an NOC from your bank before doing the same. Getting that shouldn’t be problem as your husband is a co-borrower of the property too. I hope this helps 🙂

  24. Manoj
    Dec 04 2015 at 12:21 pm
    Reply

    Hi

    I have purchase a house on my wife name in 2011
    In the Home Loan I am applicant and my wife is co applicant who is housewife.
    EMI is paid by me through Salary Income.
    My Query is .. Can I claim tax benefit.

    • Tarini
      Tarini
      Dec 09 2015 at 2:27 pm

      Hey Manoj

      Are you a co- owner of the property too? If not, then you will not be able to claim any tax benefits on the EMI’s being paid by you. I hope this helps.

  25. Kamal
    Nov 30 2015 at 4:29 pm
    Reply

    Hey Tarini
    I’ve availed a loan to purchase a ready to move house in Nov 2015. The bank made the disbursement in parts and hence charged pre-EMIs for Nov 2015 on 30-Nov-2015. I’ve however got the possession yesterday i.e. 29th Nov 2015.

    How can I claim the pre-EMIs for Nov 2015 as I’ve got the possession before even the pre-EMI was deducted.
    Can I fully claim it in the current financial year or it will be distributed between the next 5 financial years.

    Regards
    Kamal

    • Tarini
      Tarini
      Dec 10 2015 at 2:43 pm

      Hey Kamal

      IT deductions can be claimed only in 5 installments over the next 5 years, so looks like you’ll have to distribute it over the next 5 years.

  26. Manisha
    Nov 18 2015 at 9:35 pm
    Reply

    Hello Tarini,

    I recently bought a house in joint ownership with my mother. I have contributed half of the amount through a home loan for which I will claim loan tax benefits.

    Can I also avail tax benefit under HRA as I am paying her rent (half of the actual rent in the area) for the said self occupied property as she is joint owner and not living in the property?

    Please share your suggestions on the same. Thanks

    • Tarini
      Tarini
      Dec 09 2015 at 3:25 pm

      Hey Manisha

      Since its a self occupied property, you cannot claim HRA for paying rent to your mother on the same property. The fact that you have listed that as a self occupied property disqualifies your from making the claim, her status of residing in the property is immaterial to this.

  27. Sonam
    Nov 04 2015 at 2:49 pm
    Reply

    Hi Tarini,

    My husband & I have joint ownership of our house property. This property has been let out as we are living in a different city. Now since I am in a lower income bracket, can I show the rent received entirely as my income? The rent is received in my bank account.

    • Tarini
      Tarini
      Dec 09 2015 at 2:30 pm

      Hey Sonam

      Apologies for the delayed reply. Yes, you can go ahead and do that. This will have no negative implications on either of you 🙂

  28. DJ
    Oct 29 2015 at 9:46 pm
    Reply

    Dear SIr,

    If I purchase home loan with my wife single name and emi paid from our joint account so Should I get Tax benefit?

    • Tarini
      Tarini
      Oct 30 2015 at 12:50 pm

      Hey DJ

      Since your wife will be the sole borrower of home loan, you will not be able to claim any tax benefits. To do so, you need to be a co owner and co borrower of property.

  29. Pankaj Khadse
    Oct 13 2015 at 5:21 pm
    Reply

    Hello Tarini,

    I jointly own home with my Father. Both have home loans in joint for property.
    Both of us stay at different cities.

    Can I avail tax benefit under HRA as I am paying them rent (half of the actual rent in the area) for the said self occupied property as they are joint owner and not living in the property?

    If yes kindly guide me what proof I should submit?

    Regards,
    Pankaj

    • Tarini
      Tarini
      Oct 14 2015 at 2:56 pm

      Hey Pankaj

      Yes, you can claim HRA by showing that your pay rent to your Father. For this you will have to give your employer your father’s PAN no. and possibly draw up a rent agreement. Do keep in mind that by doing so, your father will have to start paying tax on the income from rent you pay.

    • jatin mandhian
      Dec 17 2015 at 1:46 pm

      i also have same problem tarini
      me and my wife are co owner of house,i pay emi also,in tax HRA rebate can i show that i pay rs 8000 to her as rent ,would that be also taxable to her,she is also salaried.

    • Tarini
      Tarini
      Dec 17 2015 at 1:51 pm

      Hey Jatin

      Unfortunately, you cannot pay rent to your wife. This is not permitted under income tax law.

  30. asma
    Oct 13 2015 at 11:41 am
    Reply

    Hi Tarini,

    Me and my Husband purchased a property in which we both are co-owner and also the co-applicant in home loan but the entire EMI is being paid by my husband through his salary account since both of us have taxable income , can i also claim tax benefit though i dont pay EMI.

    Also please clarify how is the ratio of ownership in property and loan is decided.

    • Tarini
      Tarini
      Oct 13 2015 at 1:37 pm

      Hey Asma

      1. Since all EMI payments are directed through your husband’s account, the tax certificate provided by bank will bear only his name. so you will not be able to claim any tax deductions. To do so, you can start directing EMI payments through a join account.
      2. Typically it is assumed that both co-owners have a 50:50 share in the the property and home loan. If you wish to specify the share of ownership explicitly, you can do so by putting it down on stamp paper and get it notarized by a magistrate. I hope this helps 🙂

    • asma
      Oct 14 2015 at 3:55 pm

      Hi Tarini,

      Thanks for the prompt reply.

      The PROVISIONAL CERTIFICATE for claiming deduction provided by the bank reflects mine and my husband’s name.

    • Tarini
      Tarini
      Oct 14 2015 at 7:08 pm

      Hey Asma

      You’re welcome 🙂
      If the provisional certificate bear’s both the names, then you can claim tax benefits too. Just attach it along with your IT returns.

    • Nija
      Jan 11 2016 at 10:27 am

      Hi Tarini,

      My case is just opposite. My husband and I am are coowners & Co borrowers and EMI is paid from his salary account. We haven’t got possession yet , though the registration was done 2 months ago .The bank provisional certificate has both of us name .I don’t want to claim tax benefits , can only he claim the benefits ? WHat is need to be done for that ? Nothing about share mentioned anywhere .

    • Tarini
      Tarini
      Jan 18 2016 at 1:28 pm

      Hey Nija

      There is absolutely no problem here, your husband can simply attach the provisional certificate along with his IT returns and claim 100% tax benefits on the EMI.
      But why are you not claiming tax benefits? If both of you claim IT deductions on your EMI payments, you can collectively save 7 lakhs on tax payments.

  31. Ashutosh
    Aug 31 2015 at 2:03 pm
    Reply

    I am salaried individual. Recently I got possession of apartment which is co-owned with my mother. nearly 50% of payment is done from her account so she is equal owner in terms of contribution. I am paying EMI on home loan from past 4 years also (during under construction period). I have 2 queries.

    1. Is there any clause in IT that home loan rebate is not applicable if flat is not handed over within 3 years of taking loan.

    2. can I pay rent to my mother and claim HRA deduction in addition to home loan rebate ?

    Regards,
    Ashutosh

    • Tarini
      Tarini
      Sep 02 2015 at 2:48 pm

      Hey Ashutosh

      Here’s a response to your queries;
      1. According to Income Tax Act, if possession of an under construction property happens after 3 years of taking the home loan, then for that period, the IT deductions can be made only up to a limit of Rs. 30,000 as against the usual ceiling of Rs. 2 lakhs.
      2. You cannot claim home loan rebate and HRA deduction for the same property.
      I hope this helps 🙂

  32. Venkataramanachary Solleti
    Aug 29 2015 at 12:07 am
    Reply

    Hi Tarini,

    I am the primary applicant for the House Loan and my father is co-applicant. The bank’s provisional certificate lists both of us as re payers.The house loan is borrowed for the construction of house on the land which is owned by my father.

    Can i claim any tax benefit since i am paying the 100% of the emi, IF not because of the reason that land owner is my father, what are the options left for me if i still want to claim tax rebate.Are the options of making me as co owner feasible ? since the property is already under loan. Thanks.

    • Tarini
      Tarini
      Aug 31 2015 at 1:01 pm

      Hey Venkataramanachary Solleti

      To claim tax benefits on the home loan, you will need to be a co-owner of the property too. so yes, it will be feasible if your father added you as a co-owner of property. For doing so, he will need to take permission from the bank. I hope this helps 🙂

    • Lokesh Jaladi
      Apr 19 2016 at 6:08 pm

      Hello Tarini,
      I have a question regarding tax benefits on housing loan.
      Property on my dads name. I have taken housing loan on joint account where I am the co-applicant.
      So can I claim for tax benefits as I am paying 100% EMI monthly.

    • Soni Singh
      Soni Singh
      Apr 25 2016 at 12:15 pm

      Hey Lokesh

      You can definitely claim for tax benefits as you are the co-applicant.

  33. fenil
    Aug 24 2015 at 8:50 am
    Reply

    Hi Sir,

    Myself and my wife bought a flat in our both name and loan amount paid by myself. We are not staying in the same flat, this property rented out and income from house received by my wife. She is not employed and is filing return.
    (Home loan is in individual name )

    on the other hand, we stay in another state in a rented apartment. I am sure, I can claim interest upto 2 lakh and principal amount under relevant heads.

    my doubt is here, can I claim HRA as my wife gets income from rented property

    • Tarini
      Tarini
      Dec 09 2015 at 3:01 pm

      Hey Fenil

      Yes, you can go ahead and claim HRA since your wife is claiming the income from the rented property.

  34. Jatin
    Aug 16 2015 at 7:20 pm
    Reply

    Hi Tarini,
    I have two properties.
    Property 1 – Self occupied
    I am the sole owner of the first property and claiming 2Lacs as loss of income for the interest component.

    Property 2 – Let out
    I and my spouse are co-owners (50% – 50%) and co-borrowers.
    100% EMI payment is debited from my saving account, my spouse is not claiming any Income Tax exemption for this property.
    We are also receiving annual rental income against this property.
    I want to know if my spouse has to show 50% of rental income received (after standard deductions) – as she is a co-owner of the property – as income from house property, or can I show 100% of the rental received in my name. Want to specify one more thing – Rent agreement for second property was executed in my name and rent is deposited in my saving account.

    Thanks,
    Jatin

    • Tarini
      Tarini
      Aug 18 2015 at 1:29 pm

      Hey Jatin

      Since the rent agreement has been executed in your name and the money gets deposited in your account, only you can show rental income received. Your wife will not be entitled to show 50% of rental income. I hope this helps 🙂

  35. Hamdan Ali
    Aug 12 2015 at 11:54 am
    Reply

    Hi Tarini, my wife and I are joint owners of a property in Mumbai which we bought only last month. We want to know from you that since we bought a resale property from an individual, are we still eligible to get tax exemption for stamp duty and registration charges under section 80C or is this benefit only in case of purchase of a new property? Please suggest

    • Tarini
      Tarini
      Aug 12 2015 at 3:39 pm

      Hey Hamdan

      Congratulations! Regarding your query; you and your wife can get IT benefits on all the EMI’s (if you have taken a home loan), stamp duty and registration charges you have paid under section 80C. This provision applies to all home loan borrowers and home purchasers, the age of property and being the second owner or any other such factors do not affect this.

  36. Anirudh Tandon
    Jul 29 2015 at 12:39 pm
    Reply

    Hi.
    I along with my wife have a joint home loan on 50:50 basis and our property is registered jointly on 50:50 basis. We were paying the EMIs on 50:50 basis and we were also claiming the Income Tax benefits on 50:50 basis. Our property is rented out and the rental income was also being shared with my wife on 50:50 basis.
    We were declaring our respective Income Tax Returns in accordance with the above arrangement till AY2014-15.

    Since last year, my wife is not paying the EMIs and only I am paying the EMI on 100% basis. However, we both are still sharing the rental income on 50:50 basis.

    For AY2015-16, I will be claiming 100% Income Tax benefit since I am paying the complete EMIs.

    My query is that since I will be claiming 100% Income Tax benefit for the complete EMIs that I am paying, can I show the rental incomes on 50% basis for myself and 50% for my wife in our respective Income Tax Returns for AY2015-16.

    I will appreciate a quick response on this. Thanks.
    Regards,
    Anirudh

    • Tarini
      Tarini
      Aug 12 2015 at 5:30 pm

      Hey Anirudh

      Yes, even though you are claiming 100% tax benefit on your EMIs, you can continue to show the rental incomes as 50:50 with respect to income tax returns for 2015-16.

  37. P Das
    Jul 26 2015 at 9:05 pm
    Reply

    Hello Tarini,

    Thanks for publishing such an important and informative article. I’ve a query similar to this post. I’ve booked my first home on December 2014 and my first EMI started from February 2015. The house is under-construction and the agreement had been done in both of me and my wife’s name. As the house had been purchased jointly so as our home loan where my wife is the applicant and me being the co-applicant for same. Also wanted to highlight that I’m paying complete EMI instead of pre-EMI as per the choices available with bank. The EMI amount is completely paid by me including the down-payment amount during house agreement. Now I wanted to file my Income Tax return for fiscal 2015-16 but not sure what would be the eligible amount for me get tax benefit and also what all documents will be required for same. Kindly advise.

    Regards,
    P. Das

    • Tarini
      Tarini
      Jul 28 2015 at 7:33 pm

      Hey Mr. Das

      Since you are a co-owner and co-borrower of the loan, you can avail IT benefits by simply attaching the tax certificate provided by bank along with your IT returns.

    • P Das
      Jul 28 2015 at 9:00 pm

      Thanks Tarini for replying me with details. But you have mentioned about the Tax Benefits I may get against the bank EMI I am paying presently. I would like to claim the down payment amount including the Stamp duty fees for this purchase under IT Return. Kindly let me know what is the eligibility for that and what all documents I need to provide for the same

    • Tarini
      Tarini
      Aug 03 2015 at 3:04 pm

      Hi Mr. Das

      To claim IT benefits on your EMI, down payment and stamp duty fees you need to be a co-owner and co-borrower of the property and loan. For this you will need to attach a receipt of the stamp duty fees paid by you along with the tax certificate provided by bank, along with your IT returns. This should be sufficient 🙂

    • KUNAL
      Aug 06 2015 at 10:15 pm

      Hi Tarini

      Thanks, for sharing such an informative article, many doubts of mine have been cleared. But still, I am stuck with one doubt. Please, help me out!

      In this FY 2014-15, I and my wife has bought home loan. We are 50% co-owners of property. The whole EMI amount is paid by me till 31st March, 2015. My wife is also working and she has taxable income for this FY 2014-15.

      So, my question is, As she has not paid any EMI, but she is co-owner of property. How can she claim deduction for interest and principal for this FY 2014-15?

    • Tarini
      Tarini
      Aug 07 2015 at 6:40 pm

      Hey Kunal

      Thank you for the appreciation 🙂 Regarding your query, your wife will not be able to claim any tax benefit as she hasn’t contributed to EMI payment. To claim IT benefits, one needs to contribute to the EMI and in the case of joint home loan, specify the percentage of contribution, without which its taken as 50:50.

    • KUNAL
      Aug 07 2015 at 10:35 pm

      Thank you very much!! for your prompt reply. I appreciate for the service you and your team are providing. 🙂

    • Tarini
      Tarini
      Aug 10 2015 at 11:50 am

      Hey Kunal

      Thank you for the kind words 🙂

  38. meetu
    Jul 26 2015 at 12:42 pm
    Reply

    Hi,
    I wish to take a interest free loan from my father to partially repay my home loan from Icici bank. My query is as below:
    1 do I need to do any paperwork?
    2 will I or my father be liable to pay any sort of tax to govt , in case its a completely tax free loan ?
    Regards
    Meetu

    • Tarini
      Tarini
      Jul 28 2015 at 6:02 pm

      Hey Meetu

      Taking a loan from your father can be treated as a simple case of (informal) borrowing and doesn’t need any paper work as such. However, if both of you want to formalize the loan, you can put it on a stamp paper and get it notarized by a magistrate (listing out all terms of lending etc).
      Since this will be an interest free loan, neither you nor your father will not be liable to pay an tax for the same.
      I hope this helps 🙂

  39. Anirudh Tandon
    Jul 23 2015 at 12:58 pm
    Reply

    My wife and I are co-owners of a house. The house is rented and the rental income is shared on 50:50 basis. Till recently, we were paying the EMI on 50:50 basis and claiming Income Tax benefit on 50:50 basis as well as declaring the rental income on 50:50 basis.
    Now I am paying 100% EMI and we have a signed declaration in place that only I will be paying 100% EMI and claiming 100% Income Tax Benefits for the same.
    My query is that since I am paying 100% EMI and that I will be claiming 100% Income Tax benefits, can we still show the rental Income on 50:50 basis, i.e. both my wife and I will file our IT Returns with 50% Rental Income each.

    • Tarini
      Tarini
      Aug 05 2015 at 3:02 pm

      Hey Anirudh

      Since both the payments (EMI and rent) are completely unrelated, showing rental income on a 50:50 basis will not be a problem 🙂

    • Anirudh Tandon
      Aug 05 2015 at 8:49 pm

      Thanks Tarini

    • Chandrakanth
      Aug 15 2015 at 4:02 pm

      Thanks Tarini… I also had the same query. I observed there is no link between the two (EMI & rent) while filling my ITR2 form today…

    • Tarini
      Tarini
      Aug 18 2015 at 12:34 pm

      Hey Chandrakanth

      Yes, that’s right, there is no link between EMI and rent when it comes to ITR 🙂

    • D K Jagtap
      Jan 06 2016 at 10:52 am

      Hi Tarini,
      I am stuck in same situation but my company HR is stating that as I am claiming 100% tax benefit on home loan then I will have to show the real/notional rental income. My wife is house wife and she receives the rental income.
      ===================
      HR Reply below:
      For the let out property, the rental income (your additional income) should be shown which will be adjusted with the interest amount since you are claiming the tax exemption for housing loan, even if your wife collect the rent amount.
      If you don’t want to show the rental amount then the housing loan should be updated as self occupied.
      =====================

    • Tarini
      Tarini
      Feb 08 2016 at 4:56 pm

      Hey DK Jagtap

      A simple solution to this is to execute a rent agreement in your wife’s name and declare all rental income under her name. This way you there will be no compulsion for you to show the rental income under your portfolio. I hope this is helpful 🙂

  40. gaurav
    Jul 14 2015 at 12:32 pm
    Reply

    Hi Tarini,

    I have one query regarding income tax benifit acceptance on Home Loan.
    Me and My father have taken Joint Home Loan.
    But i am paying EMI from my account only and My father transfer his portion of EMI from his account to my account .
    Is it valid to get Income tax rebate for my father is such case or we need to open Joint account for paying EMI to get income tax rebate claim for both of us.

    Thanks in advance.

    • Tarini
      Tarini
      Jul 23 2015 at 1:53 pm

      Hey Garuav

      In the current scenario, your father will not be able to claim and IT benefits as the certificate issued by bank will not have his name on it. It’ll be best if you open a joint account and direct all the EMI payments through it, this way bank will issue a certificate with both your names, making it possible for both to claim tax benefit.

  41. VInith
    Jul 13 2015 at 10:08 pm
    Reply

    Hi,

    Thanks for all the above information, Please help me with below queries

    1) Me my brother and My Father have taken a joint loan for construction of house on a PLOT which is in my Father’s name only , can all three of us avail tax benefit on both Principle and Interest .

    2) The above constructed house has 2 floors with 2 independent houses, I’m living in one of them and My father in the other ,Since this property is not in my name , Can i claim HRA as well along with HL tax exemption (considering I’m paying rent to my Father)

    Please advice

    • Tarini
      Tarini
      Jul 23 2015 at 2:02 pm

      Hey Vinith

      We are happy to help 🙂 Responding to your queries;
      1. You and your brother will not be able to claim any tax benefit on EMI payments made by you as you are not co-owners of the property.
      2. Further, you will not be eligible to claim HRA benefits either as paying rent to close blood relations doesn’t qualify as a criteria.

  42. Abhishek Joshi
    Jul 08 2015 at 7:54 pm
    Reply

    Hi Tarini,
    I have purchased a under construction flat in Bangalore on March 2014. I will get the possession in April 2016. Me and my wife are co-owners in the agreement and co-applicants in the home loan. Registration of the property will be done during possession only.
    During the purchase I have paid the 30% of the property price and will be again giving 20% during possession. Our EMI gets deducted from our joint account. My wife transfers the full EMI value to this joint account every month from her individual bank account.
    Our plan is that my wife will repay bulk of the EMI payments and I will pitch in when she takes a career break. So when we get the possession of the house, if we both claim tax benefits, will that be ok or we need to route EMI in some other manner so that we both can claim tax benefits.

    • Tarini
      Tarini
      Aug 12 2015 at 6:28 pm

      Hey Abhishek

      Since you are routing the EMI payments through a joint account, both of you should be eligible to claim tax deduction as the interest certificate provided by bank will have your’s and well as your wife’s name on it. However, if you haven’t defined the percentage of EMI payments made by you and your wife, while claiming tax benefits it will be considered as 50:50. You can define this by drawing up and agreement between both co-borrowers on a stamp paper and get it attested by a magistrate. I hope this helps 🙂

  43. Raj Kumar Gupta
    Jun 17 2015 at 3:19 pm
    Reply

    Hi,

    Please clear my doubts.

    I purchased a flat (under-construction) & registered in June 2012 and took home loan. Flat is registered on my name and my wife’s name. This is our first home. We both are applicants for the Home loan.

    We both started paying the full EMI from August 2012 for this under-construction flat.
    We have not got the possession of flat yet. Possession is expected in December 2015.

    Heard that possession should be withing 3 years to get the tax benefits. Is it true? Please confirm and provide the details.

    We are currently staying in government accommodation in same city for which there is monthly deduction from the salary as rent for the govt. accommodation.

    After the possession the flat, hoping this year or my be next year, will we both get tax benefit on home loan?

    On home loan interest paid, the max limit i.e. 2 Lakh is for each co-applicant for home loan or combined limit for all the co-applicants of the home loan to get the tax benefit?

    For example:

    We both paid 4L interest on home loan together in this year and both are paying the EMI in 50:50 ratio.
    So each applicant can claim 2 Lakh for tax benefit or each can claim only 1 Lakh as paying EMI in 50:50 ratio as max limit is 2 Lakh?

    Please respond.

    • Tarini
      Tarini
      Jun 17 2015 at 6:25 pm

      Hi Mr. Gupta

      Here’s a clarification to all your queries:

      1. No, its not true. You can claim tax benefits on all your EMI payments once you get possession, by dividing it into 5 equal installments, over the next 5 years, from date of possession.
      2. Yes, after possession both of you will be able to claim tax benefits individually, under section 24 and section 80C (Read more here).
      3. The maximum limit on tax benefits for both interest and principal payments is 2 lakhs and 1.5 lakhs, individually. This means that collectively you will be able to claim 7 lakhs per annum.

      I hope this addresses all your concerns 🙂

    • Raj Kumar Gupta
      Jun 18 2015 at 9:59 am

      Thanks Tarini for clarifications.

    • Tarini
      Tarini
      Jun 18 2015 at 3:02 pm

      We are happy to help 🙂 Do feel free to contact us for any other queries in the future.

  44. Amit
    Apr 29 2015 at 11:58 am
    Reply

    Hi Priyanka,

    Actually my confusion started when i read that one has to be atleast a co-owner as well to claim tax benefit, And since I am not co-owner or owner of the plot (which is listed in my father’s name) though I am Primary applicant and paying full emi, can u clear things out ?

    Thanks a lot,

    AMIT

    • Priyanka
      May 06 2015 at 6:56 pm

      Hi Amit,
      You need not be co-owner of the plot. As long as you are paying at least a part of the EMI you can avail tax benefits.
      http://www.SwitchMe.in
      +91-8108899980

    • Amit
      May 08 2015 at 10:58 pm

      Thanks a lot !!!

  45. Ritesh S
    Apr 25 2015 at 9:35 pm
    Reply

    Hi,

    My father and I are co- applicants of a home loan. The bank’s provisional certificate lists both of us as re-payers. The repayment is through my father’s account but is it possible that I alone claim all the tax benefits? Here’s how it happens. I transfer the required amount every month to father’s account and EMI is getting deducted through father’s account. My Father is not claiming the tax benefits.

    • Priyanka
      Apr 27 2015 at 5:40 pm

      Hi Ritesh,

      If your father and you are the co-applicants then both will avail the tax benefits.

      Regards,
      http://www.switchme.in

  46. Amit
    Apr 24 2015 at 6:27 pm
    Reply

    Hi Tarini, I am the primary applicant for the House Loan and my father is co-applicant. The house loan is borrowed for the construction of house on the land which is owned by my father. Can i claim any tax benefit since i am paying the 100% of the emi, and bank has issued the interest certificate on my name. IF not because of the reason that land owner is my father, what are the options left for me if i still want to claim tax rebate. are the options of making me as co owner feasible ? since the property is already under loan. Thanks.

    • Priyanka
      Apr 27 2015 at 5:53 pm

      Hi Amit,
      Yes you can definitely avail tax benefit as you are paying 100% of the EMI.

      Regards,
      http://www.switchme.in

  47. sonu
    Apr 19 2015 at 9:26 pm
    Reply

    Hi ,
    MY wife and I have applied for a home loan from SBI

    On loan papers:
    a.My wife, who is a house wife, is applicant for loan
    b.I am co-applicant for loan. EMI of entire loan will be deducted from my salary

    On property papers:
    a.I will be first owner of property
    b.My wife will be second owner of property

    Queries:
    a.Will I get full 100% tax benefits on home loan?
    b.Will 100% tax benefits limited to a maximum limit of 1.5 lakhs for principal repayments and 2 lakhs for interest payments?

    Please clear my query.

    Thanks & Regards

    • Tarini
      Tarini
      Aug 13 2015 at 3:54 pm

      Hey Sonu

      Here’s a clarification to all your queries:
      1. Yes, since you are paying full EMI, you will be eligible for 100% tax benefits.
      2. Yes, that’s right, you will be eligible to get IT benefits of total 3.5 lakhs (including principal and interest amount).
      I hope this helps.

  48. raj
    Mar 03 2015 at 1:31 am
    Reply

    Hi Tarini,

    I am planning to buy a flat with co-owner as me and my father. Home loan will be taken on both names- me and my father. As this will be my 1st property, but my father’s second property(along with second home loan). So, is it possible for both of us to claim exemption benefit(for both principal and interest) for both properties? Me and my father lives in different location. 1st property is self-occupied by my father and the 2nd one will be self-occupied by me.

    • Tarini
      Tarini
      Oct 07 2015 at 8:22 pm

      Hey Raj

      Yes, both of you can claim tax benefits on the jointly owned property.

  49. Nisha Jassal
    Feb 18 2015 at 10:05 am
    Reply

    Hi A query on the exemption bit. My husband and i are co-owners of a flat we are not staying in, neither has it been rented out. My companies salary consultant has not considered the principle amount for calculating my tax deductions. Only the interest has been considered, and this is resulting in me paying huge tax in my Feb and March Salary. Before i can take this up with the consultant i wanted to clarify that i am liable for exemption on both fronts – principle and interest.

    • Tarini
      Tarini
      Feb 19 2015 at 5:40 pm

      Hey Nisha

      Yes, you are eligible for tax deductions of up to 2 lakhs on your principal repayments under section 24 of the Income Tax Act. Kindly take this up with your consultant as it will help you save a considerable amount in tax payments.

    • Nisha Jassal
      Feb 19 2015 at 6:21 pm

      Thanks Tarini,

      So to understand i am eligible for both Principle and Interest exemption for my home loan. Also will i have any HRA exemption?

    • Tarini
      Tarini
      Feb 19 2015 at 7:16 pm

      Hey Nisha

      Yes, you can claim tax deduction on both.
      About the HRA exemption, you can claim if you are paying rent for the house you are currently living in.

  50. Senthil Kumar
    Jan 22 2015 at 1:34 pm
    Reply

    Hi Tarini,

    Could you please clear my query.

    I have a property on my name, in which i am planning to construct a home with joint loan. My wife will be co-applicant for the loan and she is not the co-owner of the property. She will be paying EMI for loan. Can she have any tax benifit for this.

    • Tarini
      Tarini
      Jan 22 2015 at 3:55 pm

      Hi Senthil Kumar
      To claim tax benefits a co-applicant has to be a co-owner of property too. Unless you add her as co-owner she will not be eligible to claim any tax benefits.

    • srinu
      Jan 16 2016 at 7:46 pm

      We have taken a housing loan as my mother was the main borrower and me and my father are the co borrowers as my mother have no income considering my income and my fathers income bank had sanctioned housing loan can my father and I can avail tax exemption benefit.if we can avail tax benefit how can percent we both are eligible

    • Tarini
      Tarini
      Jan 27 2016 at 4:51 pm

      Hey Srinu

      Are you and father co- owners of the property too? If yes, then both of you can claim IT benefits in any ratio you like. You can define the ratio of contribution to the repayment of home loan on stamp paper, or else it will be assumed to be a 50:50 division.
      To make sure that the provisional certificate provided by the bank has both your names, you can direct all payments from a joint savings account. I hope this helps 🙂

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