1. In a joint home loan, although the loan is taken by more than one person, the EMI payment can be made from only one bank account which can be single or joint account of one of the borrowers.
2. The borrowers can choose to share the number of EMIs between them in the whole year.
3. It does not matter whether the payment is made in the normal course by only one of the joint borrowers as long as the full EMI is paid as per schedule.
4. You can claim tax exemption if you are a co-applicant in the home loan as long as you are also the owner or co-owner of the property.
5. A co-owner, who is not a co-borrower, is not entitled to tax benefits.
6. Similarly, a co-borrower, who is not a co-owner, cannot claim tax benefits.
7. Therefore, before you sign as a co-applicant in a home loan, make sure that you get a right to the property as well.
8. Registering the house in joint names will make your share in the property indisputable.
9. The tax benefit is shared by each joint owner in proportion to his share in the home loan, hence it is important to establish the share for each co-borrower to claim tax benefits by maintaining all bank accounts' credits and debits entries immaculately.
10. Also, the certificate issued by the housing loan company, showing the split between principal and interest for the EMI paid, is required for claiming tax benefits.
11. If your spouse is mentioned as co-borrower and co-owner in the relevant documents, and is going to start contributing in repayment of the home loan from this year, both of you will be eligible to claim interest deduction in the proportion of payment made, up to Rs.1.5 lakh each, but it will have to be in the same proportion as the ownership.
12. The tax deduction on principal repayment can also be similarly claimed.
13. Your spouse can even deposit her contribution into the bank account from which you are paying the home loan EMI.
14. Maintain debit and credit entries of all bank accounts meticulously.
15. You will need a separate agreement with your spouse, specifying the proportion of ownership, if it is not clearly mentioned in the home loan or property registration documents.
2. The borrowers can choose to share the number of EMIs between them in the whole year.
3. It does not matter whether the payment is made in the normal course by only one of the joint borrowers as long as the full EMI is paid as per schedule.
4. You can claim tax exemption if you are a co-applicant in the home loan as long as you are also the owner or co-owner of the property.
5. A co-owner, who is not a co-borrower, is not entitled to tax benefits.
6. Similarly, a co-borrower, who is not a co-owner, cannot claim tax benefits.
7. Therefore, before you sign as a co-applicant in a home loan, make sure that you get a right to the property as well.
8. Registering the house in joint names will make your share in the property indisputable.
9. The tax benefit is shared by each joint owner in proportion to his share in the home loan, hence it is important to establish the share for each co-borrower to claim tax benefits by maintaining all bank accounts' credits and debits entries immaculately.
10. Also, the certificate issued by the housing loan company, showing the split between principal and interest for the EMI paid, is required for claiming tax benefits.
11. If your spouse is mentioned as co-borrower and co-owner in the relevant documents, and is going to start contributing in repayment of the home loan from this year, both of you will be eligible to claim interest deduction in the proportion of payment made, up to Rs.1.5 lakh each, but it will have to be in the same proportion as the ownership.
12. The tax deduction on principal repayment can also be similarly claimed.
13. Your spouse can even deposit her contribution into the bank account from which you are paying the home loan EMI.
14. Maintain debit and credit entries of all bank accounts meticulously.
15. You will need a separate agreement with your spouse, specifying the proportion of ownership, if it is not clearly mentioned in the home loan or property registration documents.