If you want to save tax up to Rs 7 lakh on joint home loan, then it is necessary that both husband and wife pay tax and are co-owners of the property. Not only this, both are paying equal amount of EMI.
Income Tax Return filing has started. Along with this, people are also looking for tax saving options. If you have taken a home loan, you can save tax up to Rs 7 lakh through this. Your home loan can play a big role in tax saving (Joint Home Loan Tax Benefit).
You can save lakhs of rupees through joint home loan.
You can avail tax exemption on home loan under Section 80C and Section 24(b) of the Income Tax Act. Exemption up to Rs 1.5 lakh is available under Section 80C only. But in case of Joint Home Loan Tax Benefit, both husband and wife can get a rebate of up to Rs 2 lakh. In such a situation, a person can save maximum tax of Rs 3.50 lakh. That means both husband and wife together can save a total of Rs 7 lakh in tax.
Special care will have to be taken about this
If you want to save tax up to Rs 7 lakh on joint home loan, then it is necessary that both husband and wife pay tax and are co-owners of the property. Not only this, both are paying equal amount of EMI.
Also note that if both are named as owners in the house papers, but are not named as co-borrowers in the home loan, then they will not be able to avail the benefit.
What is a co-borrower?
Co-borrower means that both husband and wife have taken the loan together. Both will also be responsible for the payment of the loan. If a person is having trouble in taking a loan due to other reasons like bad credit score or low income. So in such a case the option of co-borrower will be very useful for you. Because by adding another person as a loan applicant, the eligibility of the other person also increases.
