A joint home loan not only allows you to share your debt burden but also allows you to extract maximum benefits offered by the IT Act.

Download & Prepare at a time 50employees Income Tax Form 16 Part A&B for Financial Year 2016-17 & AssYear 2017-18


As per the existing Income Tax Laws, both the individuals (loan applicants) can claim income tax deductions on the principal repayment under Section 80C and on the interest amount under Section 24. The maximum amount that can be claimed as the tax deduction depends on the use of the property i.e whether it is a ‘Self-occupied property’ or a ‘Let-out property’.

What is a Joint Home Loan? – A joint home loan is a loan which is taken by more than one person.
Who is a co-borrower? – A Co-borrower is a person with whom you take the home loan jointly.
Who is a co-owner? – A Co-Owner is an individual that shares ownership in an asset with another individual/group.

Joint Home Loan & Eligibility Rules / Conditions

If the loan applicants are married couples then it is a perfect arrangement for home loan providers. The couple is at liberty to decide if they want to be co-owners or if only one of them wants to be a co-borrower.

If the loan applicants are Father & Son or Father & unmarried daughter then Lenders generally insists on the son/daughter is the Primary Owner of the property. (This can be applicable when Mother & unmarried daughter are the borrowers)

Joint Home Loan & Income Tax Benefits
  • Section 80c – As per this section, the repayment of principal amount of up to Rs 1.5 Lakh can be claimed as the tax deduction by the applicants individually. All the co-borrowers can avail tax benefits. If there are two co-borrowers then the maximum total tax deduction under Section 80c      can be up to Rs 3 Lakh (subject to actual principal repayment amount).
  • Section 24 – As per this section, the interest payment of up to Rs 2 Lakh (for Self occupied property) can be claimed by the home loan borrowers. If there are two co-borrowers then the maximum total tax deduction under Section 80c can be up to Rs 4 Lakh. (The maximum interest amount that can be claimed as tax deduction u/s 24 is unlimited for a Let-out property).