1. Establishing proof of actual co-ownership and co-borrowership monetarily is extremely important to avail tax benefits.
2. Your spouse will be called a co-borrower by the bank if he/she is actually disbursed a loan amount in his/her name too, and this amount will decide his/her proportionate loan share in the house.
3. If this is not so, and the entire loan amount was given only in your name, then he/she is only a co-applicant, as far as the bank is concerned.
4. Even in such a scenario, if your spouse wishes to contribute to your loan repayment and avail proportionate tax benefits, he/she can deposit his/her contribution from his/her own bank account into the bank account from which you are paying the home loan EMI.
5. You can also open a joint bank account with your spouse, where both of you can deposit your pre-determined proportionate amount, and instruct EMIs to be deducted from this bank account instead of your individual bank account.
6. You will also need a separate agreement with your spouse, specifying the proportion of payment by both of you, to establish your proportionate ownership, which is otherwise absent in your home loan and property registration documents.
7. Please maintain the debit and credit entries of these bank accounts meticulously, as proof of your proportionate payments, to establish co-ownership and co-borrowership, besides reconciling it with the bank's EMI certificate, for availing tax benefits by both.
8. This entire process is quite simple.
a) Take builder's letter, etc. in joint name as 2 or more co-owners.
b) Apply for home loan as 2 or more co-borrowers.
c) Make an agreement for proportionate ownership and payment among the 2 or more co-owners and co-borrowers.
d) Decide an existing bank account, or open a new joint account, from which EMI would be paid.
e) In either of them, all co-borrowers will deposit their proportionate agreement share.
f) Bank will issue a common certificate of payment.
g) The co-borrowers will claim tax benefits against the payment made, as per the agreement's proportion, both for principal and interest.
h) If a co-borrower defaults at any time, the others are liable to pay it.
2. Your spouse will be called a co-borrower by the bank if he/she is actually disbursed a loan amount in his/her name too, and this amount will decide his/her proportionate loan share in the house.
3. If this is not so, and the entire loan amount was given only in your name, then he/she is only a co-applicant, as far as the bank is concerned.
4. Even in such a scenario, if your spouse wishes to contribute to your loan repayment and avail proportionate tax benefits, he/she can deposit his/her contribution from his/her own bank account into the bank account from which you are paying the home loan EMI.
5. You can also open a joint bank account with your spouse, where both of you can deposit your pre-determined proportionate amount, and instruct EMIs to be deducted from this bank account instead of your individual bank account.
6. You will also need a separate agreement with your spouse, specifying the proportion of payment by both of you, to establish your proportionate ownership, which is otherwise absent in your home loan and property registration documents.
7. Please maintain the debit and credit entries of these bank accounts meticulously, as proof of your proportionate payments, to establish co-ownership and co-borrowership, besides reconciling it with the bank's EMI certificate, for availing tax benefits by both.
8. This entire process is quite simple.
a) Take builder's letter, etc. in joint name as 2 or more co-owners.
b) Apply for home loan as 2 or more co-borrowers.
c) Make an agreement for proportionate ownership and payment among the 2 or more co-owners and co-borrowers.
d) Decide an existing bank account, or open a new joint account, from which EMI would be paid.
e) In either of them, all co-borrowers will deposit their proportionate agreement share.
f) Bank will issue a common certificate of payment.
g) The co-borrowers will claim tax benefits against the payment made, as per the agreement's proportion, both for principal and interest.
h) If a co-borrower defaults at any time, the others are liable to pay it.