How to avail tax deductions on joint home loan

Higher loan eligibility is not the sole benefit of a joint home loan.

- Shipra Singh

It also allows the borrowers to claim tax benefits individually. For instance, a couple can collectively claim deductions of up to ₹4 lakh under Section 24 on the interest.

However, being a co-borrower doesn't automatically qualify you for the tax benefits. Factors like under whose name the property is registered and from whose bank account monthly installments are paid play a role in deciding whether both co-borrowers can get tax benefits.

Mint explains these intricacies in frequently asked questions (FAQ).

My wife and I have taken a joint home loan in her name. Can I claim tax benefits?

No, you can't, as you are not a co-owner of the property. The primary condition to claim tax deductions on home loan interest under Section 24 is that you should be an owner or co-owner of the house on which the loan is taken. Your wife can claim benefits on her portion of EMIs. This would apply to even situations where parents take joint home loans with their children so that the child can contribute to loan repayment. If the child is not a co-owner of the house, they can't claim tax benefits on the loan.

My wife and I have a joint home loan on a co-owned house. The EMI gets deducted from my wife's bank account. Can both of us claim tax benefits?