Tax benefits Joint Home loan with Mother

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Tax benefits Joint Home loan with Mother

I have taken a joint home loan with my mother. Her name is present in the property documents (Co-owner) and the Home loan documents as a co applicant (Co-borrower). She is a non earning member and the entire home loan (all EMI) will be repayed by me. I came to know that as per income tax rule, in a joint home loan each person can claim tax benefit based on the ratio of their ownership (in this case 50:50 ratio). Does that mean that i cannot claim 100% of the tax benefit? Since my mother is neither paying anything for the loan and neither claiming any tax benefit.

Profile photo of Imon Majumdar Asked By: Imon 1 replies 1 helpful answers Last Updated: 3 weeks, 6 days ago
  • Profile photo of Imon MajumdarImon
    Participant

    I have taken a joint home loan with my mother. Her name is present in the property documents (Co-owner) and the Home loan documents as a co applicant (Co-borrower). She is a non earning member and the entire home loan (all EMI) will be repayed by me. I came to know that as per income tax rule, in a joint home loan each person can claim tax benefit based on the ratio of their ownership (in this case 50:50 ratio). Does that mean that i cannot claim 100% of the tax benefit? Since my mother is neither paying anything for the loan and neither claiming any tax benefit.

  • Profile photo of Nitesh BindNitesh Bind
    Participant

    If the house has been purchased out of loan amount which was borrowed by JOINT BORROWER and if the house is also taken in the name of JOINT OWNER (being the same person who has taken the joint loan) then DEDUCTION WOULD BE ALLOWED TO BOTH THE PERSONS. This is an additional benefit for the taxpayers, not a constraint. It means that you and your mother both can claim the deduction for AMOUNT PAID FROM THEIR SIDE but only up to the maximum limit provided in the Section. If ALL THE AMOUNT IS BEING PAID FROM YOUR ACCOUNT ONLY THEN DEFINITELY THE TAX DEDUCTION WOULD BE ALLOWED TO YOU FOR 100% OF AMOUNT PAID SUBJECT TO THE MAXIMUM LIMIT OF SECTION 80C (FOR PRINCIPAL) OR SECTION 24 (FOR INTEREST) AS THE CASE MAY BE.

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