Without a doubt, joint housing loans are gaining a lot of prominences. Joint home loans are very popular because of the added benefits that you get. When you apply for the fast home loan jointly with two co-applicants, you will get double tax benefits and exemption.
What is a joint home loan?
Joint housing loans are the ones where there are two applicants involved in the borrowing process. These applicants for a joint home loan should be the owners of the property that they are trying to purchase. The joint home loan is one of the most common things that you will find in India, where the financial commitment of housing loans is divided between two co-applicants. The monthly installment, benefits, and tax benefits are shared between the applicants. Joint housing loans will be good for you to manage the repayments in the best way.
Tax benefits are applicable on joint home loans
- For a self-contained property, each co-owner who is also a co-applicant for the loan can claim a maximum deduction of Rs 2,00,000 for home loan interest on their
Income Tax Return. The total interest paid on the loan is allocated to the owners in the ratio of their ownership. The total interest claimed by the owners cannot exceed the total interest paid on the loan.
- The interest that can be claimed as a deduction in the case of rented property is restricted to the amount by which the loss from such house property does not exceed Rs 2 lakhs.
- Each co-owner can claim a deduction of a maximum of Rs 1,50,000 towards repayment of principal under section 80C. This is within the overall limit of Rs 1,50,000 set by Section 80C.
- Therefore, as a family, you will be able to claim a larger tax benefit against the interest paid on the home loan when the property is jointly owned and your interest is more than Rs 2,00,000 per annum.
Apply to Clix Capital!
Get the best tax benefits when you take out a joint home loan for the best benefits and tax savings. Tax savings on an annual basis will help you with a good amount of savings. If you need a fast home loan, visit Clix Capital.