The Secret to Lower Taxes and Lighter Home Loan Burden: Joint Home Loans

Provided you meet certain conditions, joint home loans can be a good tax-saving method. You need to be joint owners of the home to avail the lucrative tax benefits. The main prerequisite for availing this tax benefit is to have joint “ownership” of the property for which the home loan has to be availed.

However, in the event that you take a joint loan but are not the joint owner of the property, you may not be eligible for tax benefit under the income-tax norms. For e.g. there is a property which is owned by the parent whereas the loan is availed by the child and parents together and the loan EMIs are paid off by only the child. In such situations, the child who is repaying the loan is not a co-owner and will not be eligible for tax benefits on the home loan. Even though the child took out a joint loan, the prerequisite for tax benefits is to be the joint owner of the house. If you are looking for lucrative home loans of up to Rs. 3.5 Crore, you can opt for Bajaj Finserv home loan, available on Finserv MARKETS, and have it approved within three minutes.

Following points are important to summarize the mandatory requirements for claiming tax benefits on the property:

• Being a co-owner is a must – You need to be the co-owner listed on the property papers, as taking a joint loan without being the co-owner would not entail any tax benefits. So, borrowers need to be the owners in the property to claim tax benefits under joint loan exemption as per the income tax act. With Bajaj Finserv home loan, you can easily claim the tax benefits if you are eligible. You can get the home loan approved with minimal documentation through the Finserv MARKETS App. You can enjoy personalized offers and avail transparent pricing through the app. The user-friendly app also guarantees quick loan approval and disbursal.

• Being a co-borrower for the Loan – Along with co-ownership, you also need to be the co-applicant for the home loan. So, any EMI contribution, without being a co-owner and joint loan applicant, does not qualify for exemption under the income tax regulations.

• Property should be fully constructed – It is important to note that tax benefits can only be claimed for a house if the property has been fully constructed and the operational certificate has been issued for the home. For under-construction properties, tax benefits cannot be claimed. The property has to be in a fully constructed stage in that financial year to claim loan repayment benefits as per Income tax. If you have zeroed in on a fully constructed house, opt for a home loan, available on Finserv MARKETS, to fulfil your dreams.

Following tax benefits can be claimed –

• Property which is self-occupied: Each co-owner can claim maximum deduction of 2 Lac for the interest component paid for the home loan in that financial year. So, total interest that can be claimed by each individual is a maximum of Rs 2 lakhs rising to Rs 4 lakhs for joint loan applicants.
• Benefit for principal repayment: Each co-owner can claim a deduction of maximum Rs. 1.5 lakhs towards repayment of principal under Section 80C of the Income Tax Act, 1961. It can also be claimed on repayment of home loans availed through Finserv MARKETS.
• Stamp duty and registration charges can also be claimed as joint owners.

To avail the maximum possible benefits a plan has to offer, you should always be on the lookout for tax benefits. It is also crucial that you understand whether or not you are eligible for said tax benefits. Once you qualify, simply lay back and reap the benefits!