Joint Home Loans- Affordable Way to Achieve Your Dream House

5) Is there any tax benefits?

The most significant reason why people opt for joint home loan is to get tax benefits. Working couples, usually, choose joint home loan to reduce the tax liability.

"The tax benefits that can be claimed would be in proportion of the share that the individuals have in the loan," said Shilpa Patankar, Associate Director, KPMG.

Also if the loan is being taken for a self-occupied property then an amount upto 1,50,000 is acceptable for deduction  through interest paid under Section 24. "For claiming the deduction against interest payment, the individual should obtain possession of the property. From an income tax perspective, while the provisions for tax benefits remain the same, the total benefits available in absolute terms may be higher in a joint loan as compared to an individual loan," added Patankar.

For example, when taking a regular home loan, the maximum deduction one can claim is 1 lakh on principal EMI and 1.5 lakh on interest EMI. Alternatively, the repayment structure is different if you opt for are joint home loan. If you have to repay the total principal of 2.5 lakh and the total interest of 4 lakh, during the year then the co-borrowers can claim upto 2 lakh on principal EMI (which will come upto 1 lakh each) and 3 lakh on interest repayment (means 1.5 lakh each).

Therefore, joint home loans collectively saves more.

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