Tax benefits on a Joint home loan are available to the Joint owners of a specific property. The joint owners must take the loan jointly i.e. Applicant and Co-applicant. But to entitled for the tax benefits you must have to be the owner of the property. There are situations where the property is owned by a parent and the parent and their children together take up a loan which is paid off only by the children. In such case the child, who is not a co-owner is devoid of the tax benefits on the home loan. So able to claim the tax benefits on the property –
Now let’s us see to take the benefits the one should be must –
A co-owner in the property –
To be able to claim tax benefits for a home loan, you must be an owner in the property. Many a times, a loan is taken jointly, but the borrower is not an owner as per the property documents. In such a case you may not be able to claim tax benefits.
Must be a co-borrower for a loan –
Besides being an owner, you must also be an applicant or a co-applicant as per the loan documents. Owners who are not borrowers and do not contribute to the EMI shall be devoid of the tax benefits.
There may be a situation where you are paying the entire loan installment and the co-borrower is not contributing any payments. In such a case, you may claim the entire interest as a deduction in your Income Tax Return.
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