Every person's dream is to own a home. Under the Income Tax Act of 1961, the government offers several tax benefits on house loans to entice people to invest in real estate. Coming back to your query, can both husband and wife claim home loan interest? Yes, in India, both a husband and wife can claim deductions for home loan interest, but they must meet certain conditions.
Can Husband and Wife Both Claim Interest on Housing Loan?
Yes, if joint owners fulfill certain requirements, they may benefit from tax advantages on a shared house loan.
Both husband and wife must be co-owners of the property. If the property is owned solely by one spouse, the other cannot claim tax benefits, even if they contribute to the loan repayment.
The home loan must be jointly taken in the name of both spouses. Both must contribute to the loan repayment in proportion to the share agreed upon.
Each co-borrower can claim up to Rs.2,00,000 annually as a deduction for interest paid on the loan, if the property is self-occupied.
For rented properties, there is no upper limit on interest deduction, but the total loss under "income from house property" is capped at Rs.2,00,000.
Each co-borrower can claim up to Rs.1,50,000 annually for the principal repayment, subject to the overall 80C limit.
If the property is under construction, interest paid during the construction phase can be claimed in five equal installments after completion, within the Rs.2,00,000 limit.
This was all about can interest on home loan be claim by both spouses.
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Home loan applicants view the joint home loan as a preferable option, and rightly so, as it impacts the home loan amount disbursed and interest rates offered significantly. But one of the major benefits comes in taxation. This answer will help you if know can both husband and wife claim home loan interest. It is important to clarify this doubt as it may have a great impact on the returns you are filing.
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Yes, husband and wife both can claim interest on the home loan. Consider you are co-owners and co-borrowers repaying the loan. Then you are eligible for the tax benefits for loan interest and principal repayment. Section 26 of the Income Tax Act states that each joint owner is considered the owner of their respective interests in the property. It is subject to individual taxation for those interests in the case when a property is jointly owned. Since husband and wife own the property together, both are entitled to receive the advantage of interest under Section 24.
I know you have an inquiry regarding the proportion during which the same can be recovered. So the response will depend on the proportion in which the two of you are each repaying your loan, which shouldn't really be equal for both of you. When only one joint borrower is paying off the debt, that borrower is the only one who can completely deduct the benefits of that repayment on his or her individual tax return.
What do you need to know about the joint home loan tax benefits?
The maximum tax refund that you may receive through the home loan is Rs.1.50 lakh per person and Rs.2 lakh for principal repayment. Therefore, the papers for the co-owners must properly identify each person's proportional ownership interest in the joint loan.
Can both husband and wife claim home loan interest must be clear to you now.
Read More: Can husband claim IT benefit on wife’s property? Can husband take a home loan on wife’s property? How many home loans are eligible for tax exemptions?Shifting, House?
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Can Both Husband and Wife Claim Home Loan Interest?
Vijay
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2022-12-26T18:25:46+00:00 2024-12-09T10:48:19+00:00Comment
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