Home loan in case of joint ownership | With Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10 E for the F.Y.2022-23
Home loan in case of joint ownership:
If the mortgage is taken out for the purpose of buying, building, renovating, renovating, or renovating, interest is allowed under section 24 of the Income Tax Act of 1961.
However, if the property is owned by a co-owner, the Home Loan Interest deduction is allowed if the property is jointly owned with each of the co-owners.
Income Tax Regulation:
Under section 24 of the Income Tax Law, the maximum amount of interest allowed in the case of own property is Rs 2,00,000 per co-owner, subject to actual payment of interest if the following conditions are met;
1. A housing loan is issued from April 1, 1999, for the purchase or construction of real estate.
2. A loan taken before April 1, 1999, is eligible for a maximum interest deduction up to Rs 30,000 only.
3. The acquisition/construction must be completed within three years after the end of the financial year in which the borrowed capital. For example. the loan was taken on July 2, 2015, so the acquisition or construction must be completed before March 31, 2019, i.e. three years from March 31, 2016
4. The person must certify that the loan was taken for the purchase or construction of a house, or to repay the principal of a loan previously taken for the purchase or construction.
5. However, a maximum deduction of Rs 30,000 and not Rs 200,000 is allowed for repairs, renovations or renovations.
Deduction in case of joint ownership:
For example, if a man and his wife are co-owners of a house, the mortgage interest deduction in case of joint ownership will be Rs. 2,000,000 allowed for husband and wife. Pay attention to the following points in this regard;
1. Ceiling Rs. 2,000,000 installed for own housing.
2. The persons must be co-owners of the property, and their names must be indicated in the registered deed of sale.
3. Your share of the property must be indicated in the act of sale, in the absence of such information, the property is considered equal between all co-owners.
4. To claim a mortgage interest deduction, each co-owner must take out a joint loan.
5. If people took a loan from more than one bank, but for the same property, a deduction is also allowed.
In addition to the home loan interest deduction, people can claim a deduction of U/s 80C to repay the principal of the home loan, up to a general limit of Rs 1,50,000 per person. You can check the latest Mortgage Loan Interest Rates at Money Control from the link below:
Latest home loan rates.
I hope this post has given you a clear idea of the home loan interest deduction in the case of co-ownership.
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