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Tax benefit on joint home loan but not joint owners

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Krishna

Salaried

24 Points Posted on 22 November 2021

Dear Sir/Madam,

My father and I have taken a joint Home loan. My father owns the property. I am the co-borrower/co-applicant but not joint owner. The Bank deducts EMI ('Rs 80000' amount) from both accounts equally ('40000' each).

1) In the above scenario, can I claim tax benefit on principal and interest amount despite having not ownership?

2) If 1) is No, are there any legit and feasible solutions to claim tax benefit on interest/principal amount ?

I am asking it because the current EMI amount is very huge and claiming tax benefits on principal and interest would result in substantial savings for me.

Thanks
Would be very grateful for your help.

Replies (4)

Quick Summary

This discussion explores whether a co-borrower on a joint home loan can claim tax benefits on the principal and interest if they are not a co-owner of the property. The initial suggestion is for the father, who is the sole owner, to partly sell the property to the co-borrower. A follow-up query asks if a gift deed could be a viable and easier alternative for transferring partial ownership, given the property documents are held by the bank. The advice given is that a gift deed is more suitable, with a crucial step being to obtain written permission from the bank for this partial gift.