Can both husband and wife claim home loan interest?

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.

Can husband and wife both claim interest on housing loans?

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.