Home Loan tax benefits

Save Share

This query is : Resolved

Quick Summary

If you have a joint home loan for a self-occupied property, both owners can claim tax benefits individually. The interest deduction is capped at £2 lakh per person per financial year, meaning a total of £4 lakh can be claimed if the loan is joint. This benefit extends to two self-occupied properties. For a solely owned property with bank finance, where parents reside, you can claim tax benefits, but the aggregate interest deduction for all self-occupied properties remains £2 lakh per individual.

Sonam

Sonam (Querist)
Follow

17 February 2020 I own a house jointly with my husband for which we have taken a joint home loan. This is a self occupied property and we are individually claiming tax benefits on it. I own another property solely, for which I have availed Bank finance. The second house is not let out and my parents stay there. Can I claim tax exemption of upto Rs. 2.00 lakh from both the loans?

swasti

swasti (Expert)
Follow

19 February 2020 Yes, you can. From financial year 2019-20, the benefit of considering houses as self-occupied has been extended to two houses. The interest claim cannot exceed Rs 2 lakh in aggregate in a financial year for both self-occupied properties.

Eswar Reddy S

Eswar Reddy S (Expert)
Follow

29 February 2020 No.You can't claim 2lac each for both loans. In total maximum 2lacs

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
Follow

25 May 2020 If the loan is taken jointly, then each of the loan holders can claim a deduction for home loan interest up to Rs 2 lakh each and principal repayment u/s 80C up to Rs 1.5 lakh each in their individual tax returns. To claim this deduction, they should also be co-owners of the property taken on loan. So, loan taken jointly with your family can help you claim a larger tax benefit.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now