Tax Benefits on Joint Home Loan

POSTED BY Madhava ram ON April 16, 2012 10:45 pm COMMENTS (7)

HI,
I hold a joint home loan where myself and my wife are both co-applicants and co-borrowers.
I pay above 1 lac towards Principal and around 3 lac towards interest.
So in this case can I declare 50,000 as principal and 1.5 lac towards interest and my wife also declare the same?
Because as per 80C we get the max tax benefit only upto 1 lac which covers PF, Home Loan, Insurance premium etc. and which crosses easily for me where as my wife gets only 40,000 tax benefit under 80c.
So My thinking as below:
Husband:
PF – 49,000
Insurance premium – 25,000
Home Loan Principal – 50,000
Home Loan Interest 1,50,000
Wife:
PF – 30,000
Insurance Premium – 10,000
Home Loan Principal – 50,000
Home Loan Interest 1,50,000
In this case we both can get 1 lac coverage.
Please share your thoughts.
And apart of Home Loan Principal of 1 Lac and 1,50,000 each, where else we can save the tax. I can give the detailed salary structure.

7 replies on this article “Tax Benefits on Joint Home Loan”

  1. ashal jauhari says:
    April 17, 2012 at 1:10 pm

    Dear Madhava, If your total outgo from your EMI is around 5L Rs. out of which 3L Rs. is meant for Interest & 2L Rs. for principal repayment, each of you are eligible for 1L Rs. principal repayment under section 80C & 1.5L Rs. each for interest benefit under section 24 of Income Tax Act 1962.

    Thanks

    Ashal

    Reply
    1. sushil_kataria says:
      April 27, 2012 at 4:49 pm

      Dear Sir,

      If the Pricipal paid is 1 Lakh and the interest paid is 2.4 lakh then is it possible to divide it like this
      Wife:
      1 Lakh under 80C
      90k under 24

      Husband:
      Zero under 80C
      1.5 Lakh under 24

      Both husband and wife are co-owner and co-borrower.

      Reply
      1. ashal jauhari says:
        May 10, 2012 at 5:25 pm

        Dear Sushil, the benefit of principal & interest ‘ll be in the same ratio. You can’t claim higher principal for your wife & Interest for yourself.

        Thanks

        Ashal

        Reply
  2. Madhava ram says:
    April 17, 2012 at 8:47 am

    Hi Ashal,

    If I understand you correct, if I am paying say principal of about 3 Lac then I can declare as 1 Lac and my wife can declare 1 Lac as the maximum benefit which we get is 1 Lac. and interest of 1.5 lac maximum.

    Reply
  3. Madhava ram says:
    April 17, 2012 at 2:20 am

    Hi,

    Home is registered on both of us.

    Reply
    1. ashal jauhari says:
      April 17, 2012 at 8:40 am

      Dear Madhava, As both of you are co-owner of the house, the principal repayment as well as Interest payment both are available to you both. Out of that more than 1L Rs. Principal amount, divide it into equal part & that’s the part of each of you. Same thing is for interest.

      Thanks

      Ashal

      Reply
  4. ashal jauhari says:
    April 17, 2012 at 12:34 am

    Dear Madhava, In whose name this house is registered, you alone, wife alone or both? Please clarify.

    Thanks

    Ashal

    Reply

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