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Home Loan Income Tax queries

384 views 3 replies

Sparsh Gupta

24 Points Posted on 22 December 2023

Hi team

We took a home loan jointly for a huge amount. However, the apartment construction is still in progress and handover is after 3 years.

But we have started payment of emi's from this month onwards.

How to claim tax deduction for principal and interest payment under which sections?

Replies (3)

Sharath chandra

Accountant

1227 Points Posted on 23 December 2023

You cannot claim it before possession. can be claimed from the year of possession.

interest paid now can be claimed for 5 years after possession.

Musrath Shaik

175 Points Posted on 23 December 2023

When you take a joint home loan, both co-borrowers can individually claim tax benefits for the principal and interest repayments, subject to certain conditions. Here's a general overview based on the provisions in India:

Tax Deduction for Principal Repayment:

Under Section 80C of the Income Tax Act, you can claim a deduction for the principal repayment on a home loan. The maximum limit for this deduction is ₹1.5 lakh per financial year. Here are some key points:

Joint Loan: Both co-borrowers can claim a deduction for the principal repayment individually, up to the specified limit.

For further more detailed information on this topic visit: Home Loan Interest Deduction: Under Section 80EE

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