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LOAN INTEREST BENEFIT ON NEW TAX REGIME

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RANJIT KARMAKAR

44 Points Posted on 12 July 2026

Property in the name of Daughter on loan from bank but the Monthly Instalment debited from her Father banking account as a co applicant. If the same property having Rental Income, can we deduct Interest benefit on Daughter Income Tax Return in New Tax Regime.

Vice Versa if the Property In the name of Husband on loan from bank but the Monthly Instalment debited from Wife banking account as a co-applicant. If the same property having Rental Income, can Husband claim Interest benefit on His Income tax return under New Tax Regime.

PLEASE ADVISE

Replies (2)

Quick Summary

This discussion explores claiming loan interest benefits on income tax returns under the new tax regime, particularly when a property is in one person's name but loan instalments are paid by a co-applicant. While deductions are possible to the extent of the individual's share in the property, the new tax regime offers limited benefits for home loan interest compared to the old regime, especially for self-occupied properties.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121521 Points Posted on 12 July 2026

Yes to both but to the extent of share of the daughter/husband in the property.

Thinking Bridge

Practical Finance Training

228 Points Posted on 12 July 2026

Under the new tax regime, the home loan interest benefits are minimal compared to the old tax regime.

For self-occupied property, there is no deduction on home loan interest under Section 24(b).
For let-out property, while interest deduction while computing house property income is allowed, it can be set off against house property income only in the new regime and not against salary or any other income.

Hence, if you have a self-occupied home loan and wish to avail tax benefits on the interest, the old tax regime would generally be better. Comparing your total tax liability under the two tax regimes before filing your tax return is advisable.