Tax saving on home loan

POSTED BY Gaurav Nigam ON March 14, 2013 10:30 pm COMMENTS (7)

Hi, I’ve taken home loan jointly with my wife. We are staying in the house since June 2011. The instalments are going only from my salaried account however me and my wife both have claimed tax benefit 50% each on principal and interest paid for the last 2 years.

Recently I came to know that we both can not claim as the repayment is only happening through my salaried account. 

Pls suggest, what can be done in this case?

7 replies on this article “Tax saving on home loan”

  1. Dear AB, let me try to answer you.

    For the EMI paid from 1st april 2013 to 31st march 2014, you can claim tax benefit in FY 2013-2014. If you are a salaried employee, after getting the possession of your house, just declare your home loan to your employer & you ‘ll get the tax benefit in your salary immediately in the form of reduced tax outgo.

    For Interest paid by you in Feb & Mar 2013, you can claim so in 5 installments of 20% each in FY 2013-14, & after wards.

    To know the exact %age component of principal & interest in your home loan, please ask your bank to provide provisional interest certificate.

    the principal repaid by you towards your home loan is eligible within the over all limit of 1L Rs. of section 80C for tax saving where as interest paid by you ‘ll be available for tax benefit of 1.5L Rs. under section 24(b) of income tax act.

    Thanks

    Ashal

  2. AB says:

    Hi

    I have a doubt regarding tax saving on Home Loan so asking here rather than creating a separate thread.

    I have taken a home loan of 20 lacs and might get possession in June 2013. My loan repayment EMI was started in Feb 2012.

    Doubt:
    1. If i get possession in June this year(2013), can I avail tax benefits for coming financial year 2013-2014 or will have to wait till 2014 April to avail tax benefit?

    2. If I can avail tax benefit for 2013-2014 after getting possession in June, Could I use my earlier EMIs for tax exemption i.e from (Feb 2013 till May2013) ?

    3. Regarding the Principal and Interest components of EMI, is there any specific % in which both are divided?

    Thanks
    AB

  3. Ashish says:

    Dear Gaurav,

    In 2007, Myself along with my wife had also taken a joint home loan and EMIs were going from my wife’s account. But similar to you both of us were claiming the tax benefit and there is nothing wrong in it since the loan is in joint name. As paying 50% of EMI from 2 accounts in certain banks is not easy and involve paper work.

    I found out that there is a simple affidavit that you can do on a Rs.100 stamp paper. Check out the link below for a draft:
    http://www.rediff.com/getahead/2005/may/17draft.htm

    Also, for more clarity on your tax savings, please check out this post:
    http://www.rediff.com/getahead/2005/may/17home.htm

    Regards,

    Ashish

  4. Dear Gaurav, ask your wife to transfer 50% EMI amount on mly basis from her account to your account. As simple as that.

    Thanks

    Ashal

    1. Gaurav Nigam says:

      Thanks Ashal

  5. Ashish says:

    Dear Gaurav,

    In 2007, Myself along with my wife had also taken a joint home loan and EMIs were going from my wife’s account. But similar to you both of us were claiming the tax benefit and there is nothing wrong in it since the loan is in joint name. As paying 50% of EMI from 2 accounts in certain banks is not easy and involve paper work.

    I found out that there is a simple affidavit that you can do on a Rs.100 stamp paper. Check out the link below for a draft:

    http://www.rediff.com/getahead/2005/may/17draft.htm

    Also, for more clarity on your tax savings, please check out this post:
    http://www.rediff.com/getahead/2005/may/17home.htm

    Regards,

    Ashish

    1. Gaurav Nigam says:

      Thanks Ashish

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