Home Loan tax benefits

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

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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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.

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