I have taken a joint home loan with my wife. Both of us are working and jointly own the house. How should we claim tax deductions? Can we split the total loan repayment of Rs 2.50 lakh between us?As you and your wife are joint owners and have taken a joint loan, both of you are eligible for tax concessions in the ratio of ownership. If the house is a joint property and the percentage of ownership is not mentioned (which is normally the case when a couple own a property jointly), it is presumed that the ownership is equal.
Both you and your wife can claim a deduction separately of up to Rs 1 lakh from your respective gross total income for the return of principal amount under Section 80C of the Income Tax Act, 1961. Each of you can also claim deduction for interest component paid under the head ‘Income from house property’. The maximum deduction both of you can claim separately is Rs 1.5 lakh in case the property is self-occupied. There is no restriction on the amount that can be claimed as deduction for a rented property. You and your wife can divide the total interest paid equally and claim deduction for it in your return.
