Joint Home Loan Tax Benefits

Check out Home Loan Tax Benefit for Joint Applicant under Section 24 & 80c

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If you want to make your dream of becoming a homeowner a reality but do not have the necessary funds to do so, you can always go for a home loan. But, if you think that your own personal eligibility is not going to be enough, you can always get a co-applicant on board and own a home in joint partnership with them. For doing so, the Indian government rewards you via the various tax benefits that you can claim. Read on to know all about it.

Conditions for Availing Tax Benefit on a Jointly Owned Home

Some of the conditions you must meet to claim tax benefits on a jointly-owned home are:

  • The home must be fully constructed

  • You must be a co-owner of the home, and

  • You must be the co-borrower of the loan

Types of Tax Benefits Available for Joint Home Loan

The two types of tax benefits that are available as per the Income Tax Act of 1961 are:

  • Section 24: Under this section, you and the co-owner can claim a tax deduction of up to ₹2 Lakhs every year on the interest component of the home loan until loan maturity. Note that the house must be occupied by you and the co-owner to be able to claim this type of tax deduction.

  • Section 80C: Under this section, you and the co-owner can claim a tax deduction of ₹1.5 Lakhs each every year on the principal component of the housing loan until loan maturity.

Example of Availing Tax Benefit for a Jointly Owned House

As a co-owner and co-borrower of the loan, you can claim a tax deduction of up to ₹2 Lakhs per year for the interest paid on the home loan while filing your income tax returns. The total tax deduction for interest paid will be allocated between you and the co-owner based on the ratio of ownership under Section 24 of the Income Tax Act of 1961.


For example, let us assume that you and your father have bought a home on loan and paid a total of ₹4,50,000 as interest. Moreover, you both have a 50:50 share in the property. In this case, you and your father can both claim ₹2 Lakhs each. In the case of a rented property, you can only claim a tax deduction of up to ₹2 Lakhs under this section. Additionally, you and your father can also claim a deduction of ₹1.5 Lakhs each towards repayment of the principal amount under Section 80C of the Income Tax Act.

The bottom line is that as a family, you will be able to claim a larger tax deduction on the interest and principal paid on the home loan taken for a jointly owned property.

Things to keep in mind for claiming Tax Benefits on Joint Home Loans

Some of the things you should keep in mind are:

  • When it comes to joint home loans, the tax benefits which will be claimed by you and the co-owner are divided.

  • The division of tax exemption will be based on the ownership ratio of the loan.

  • The home loan has to be taken in the name of two owners.

  • The ownership ratio must be expressed in percentage and clearly mentioned in papers.

The bottom line is, if you buy a home jointly with a family member of yours or your partner, you can avail quite a tax benefit as the Indian government encourages home ownership. If you would like to learn more about housing loans and the various other tax benefits that can come with it, you can do so on Bajaj MARKETS. Or, if you are even thinking about applying for one, you can do that through Bajaj MARKETS too.