I am planning to buy a house jointly with my wife and take a joint home loan. Can we both claim benefit in income tax?
If your wife is working and has a separate source of income, both of you can claim separate deductions in your income tax returns. For claiming income deduction regarding the housing loan, the equated monthly instalment (EMI) amount is divided into the principal and interest components.
The repayment of principal amount of the loan can be claimed as a deduction under Section 80C of the Income Tax Act up to a maximum amount of Rs 1 lakh individually by each co-owner. The repayment of the interest portion of the EMI is also allowed as a deduction under Section 24 under the head ‘income from house property’.
In cases where the house is owned by more than one person and is also self occupied by each co-owner, each co-owner shall be entitled to the deduction individually on account of interest on borrowed money up to a maximum amount of Rs 1.5 lakh. If the house is given on rent, there is
no restriction on this amount and both co-owners can claim deduction in the ratio of ownership.
The repayment of principal amount of the loan can be claimed as a deduction under Section 80C of the Income Tax Act up to a maximum amount of Rs 1 lakh individually by each co-owner. The repayment of the interest portion of the EMI is also allowed as a deduction under Section 24 under the head ‘income from house property’.
In cases where the house is owned by more than one person and is also self occupied by each co-owner, each co-owner shall be entitled to the deduction individually on account of interest on borrowed money up to a maximum amount of Rs 1.5 lakh. If the house is given on rent, there is
no restriction on this amount and both co-owners can claim deduction in the ratio of ownership.
