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Joint Home Loan Tax Benefits_WC

Joint Home Loans can be a great way to increase your family’s income tax savings, as each financial co-applicant is eligible for the deduction, provided the other conditions are met. Here is how co-applicants stand to gain through a Joint Home Loan:

  • Section 24: Co-applicants and co-owners can claim up to a maximum of Rs.2 Lakh on the interest component of the Home Loan repayment amount paid that year. The total deduction for the interest paid will be allocated between all co-owners based on the ratio of ownership.
  • Section 80C: Co-applicants and co-owners can claim up to a maximum of Rs.1.5 Lakh on the principal component of the Home Loan repayment amount paid that year, till the end of the Home Loan repayment tenor.
  • Section 80 EE: Each co-borrower can claim tax deduction of up to Rs.50,000 provided they both are first-time homebuyers. However, the property value should not exceed Rs.50 Lakh and the loan amount should not be more than Rs.35 Lakh.

Also Read: Know about Tax Benefits on Home Loan

You should co-own the property – You can claim tax benefit if the property is in your name and you are the one paying EMIs, even if you are a joint owner.

You must be a co-borrower – Besides being an owner, you must also be the loan applicant as per the documents. Owners who do not contribute to the EMI cannot avail of the tax benefits.

The property must not be under construction – You can only claim tax benefits on a fully constructed house. Any expenses prior to completion of construction are claimed in five equal installments starting the year in which construction is complete.

Also Read: Know about Income Tax Slabs

Joint Home Loans have many advantages besides sharing the responsibility of paying back the loan. One of these benefits is the tax benefits that come with it. Both co-applicants can claim income tax deductions individually, and there are other benefits that should be considered as well. The top five benefits of joint Home Loans include:

  1. Maximum Tax savings of Rs.1.5 Lakh under Section 80C

  2. Maximum Tax savings of Rs.2 Lakh under Section 24(B)

  3. Home Loan tax benefits of Rs.50,000 under Section 80EE

  4. Better interest rates for a woman co-applicant

  5. Increased loan eligibility

With a joint Home Loan, both co-applicants can claim the principal component of the EMI under Section 80C, up to a maximum of Rs.1.5 Lakh per financial year, and the interest component of the EMI under Section 24(B), up to a maximum of Rs.2 Lakh per financial year. If the construction of the home is not completed within 5 years of the loan commencement, the eligible amount is reduced to Rs 30,000. As first-time home buyers, you can also claim additional tax benefits on interest payments under Section 80EE, up to a maximum of Rs 50,000 per financial year, provided the value of the property is not more than Rs 50 Lakh and the Home Loan is not more than Rs 35 Lakh.

Additional Read: How to Save Income Tax under Sections 80C, 80D & 80G?

A woman co-applicant can also help you avail better interest rates, and adding a co-applicant with a better repayment history or credit score can enhance your loan eligibility. These benefits not only reduce your income tax burden on Home Loan but also help you fulfill your dream of buying a house. Joint Home Loans offer a great opportunity to not only obtain lower interest rates but also increase your loan eligibility.

  • To claim tax benefits on a joint Home Loan, you must be a co-owner in the property
  • Tax benefits can only be claimed if you are a co-borrower for the loan
  • The Home Loan should be availed of in the name of both the co-owners
  • The tax benefit that is claimed is divided between the co-owners



The information remains subject to change depending on the laws and government guidelines, applicable at the time being. However, Bajaj Housing Finance Limited (‘BHFL’) is under no obligation to update or keep the information current. Users are advised to seek independent legal and professional advice before acting on the basis of the information contained in the Website. Placing reliance on the aforementioned information shall always be the sole responsibility and decision of the User and the User shall assume the entire risk of any use made of this information.

In no event shall BHFL or the Bajaj Group, its employees, directors or any of its agents or any other party involved in creating, producing, or delivering this Website shall be liable for any direct, indirect, punitive, incidental, special, consequential damages (including lost revenues or profits, loss of business or loss of data) or any damages whatsoever connected to the User’s reliance on the aforementioned information.

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