Get a FREE e-course "Basics of Personal Finance"

           
  • Income Tax: Rules, Forms (ITRs), Filing
  • Investments: Stocks, Mutual Funds, ULIPs, Gold, Real Estate
  • Insurance: Term Insurance, Endowment Plans, ULIPs
  • Loans: Home Loans, Auto / Car Loans, Lease, Hire Purchase

Name:

Email:



Advantages and disadvantages of home loan in joint names

A home loan can be taken in your individual capacity – in your single name. Or it can be taken in joint names, usually along with your spouse.

There are pros and cons of doing this. Read on.

In “An introduction to home loans and factors to consider”, we saw the basic things you should look for while evaluating a home loan offer from a bank, and while comparing the home loans from different banks.
But apart from these basic factors that you need to consider for a home loan / mortgage, there is another aspect that is equally important, and bothers most of us – should the home loan be in a single name, or in joint names? What is better? What are the benefits, and drawbacks (if any)?

Let’s find out.

 

Advantage 1 – Increased Loan Amount

How do banks sanction the home loan amount? There are many factors, but an important factor is the Equated Monthly Installment (EMI) as a percentage of your monthly pay.

Banks ensure that the EMI as a proportion of your monthly income is not so high that it becomes a burden on you. Banks do this in their self-interest: A high EMI to monthly salary ratio means that the possibility of you defaulting on a home loan EMI would be high, thus increasing the risk for the bank.

So, as a rule of thumb, the higher your income, the higher would be the sanctioned loan amount.

But what if you need a higher loan? Your income is fixed – you can not increase it for taking the home loan!

The easiest way to fix this is to take the home loan in joint names. Usually, you would take the home loan along with your spouse.

In this case, the bank combines the incomes of both the applicants, and thus, can sanction a proportionately higher loan amount.

Example

Let’s say your income is Rs. 5 Lakhs per annum. On an individual basis, let’s say you are entitled for a home loan of Rs. 20 Lakhs for 20 years.

If you take the loan in joint names with your spouse, who also earns Rs. 5 Lakhs per year, together, you can potentially get a home loan of Rs. 40 Lakhs for 20 years!

 

Advantage 2 –Increase in Income Tax Benefits

We know that taking a home loan provides tremendous income tax benefits. (Please read “Income Tax (IT) Benefits of a Home Loan / Housing Loan / Mortgage” for more on this).

But when you take a home loan in joint names, and pay the EMI together, both the applicants get the income tax benefits.

And the best part is that the upper limits of tax benefit (Rs. 1 Lakh for principal repayment under Sec 80C and Rs. 1.5 Lakhs for interest payment under Sec 24) apply individually. That is, both you and your spouse (or co-applicant) would be able to claim IT benefits upto these limits!

(Please read “Saving Income Tax – Understanding Section 80C Deductions” to know more about IT benefits u/s 80C)

Depending on your income levels, this can be an enormous benefit!

Example 1

Let’s say you and your spouse both earn Rs. 6.5 Lakhs per year.

For the home loan, you need to repay Rs. 90,000 per year as principal, and Rs. 1,45,000 as interest.

If the home loan is in just your name, both these deductions would be available only to you. Thus, your taxable income would be:

Rs. 6,50,000 – Rs. 90,000 – Rs. 1,45,000

Which is Rs. 4.15 Lakhs.

The income tax saving would be:

(Rs. 1,50,000 * 30%) + (Rs. 85,000 * 20%)

= Rs. 62,000.

But if the home loan is in joint names, and both you and your spouse repay the EMIs equally, both of you would get equal benefits.

Thus, the taxable income for each of you would be:

Rs. 6,50,000 – Rs. 45,000 – Rs. 72,500

Which is Rs. 5,32,500 each.

The income tax saving would be:

(Rs. 1,17,500 * 30%)

= Rs.35,250 each, or Rs. 70,500 total – an extra gain of Rs. 8,500 in our example!

(Note: The calculation uses IT slabs applicable to FY 2008-09. To know about the applicable tax slabs, please read “Income Tax (IT) Slabs / Brackets – FY 2008-09 AY 2009-10”)

(To know the difference between FY, AY etc, please read “Income Tax (IT) Jargon – Financial Year (FY), Assessment Year (AY) and Previous Year (PY)”)

Example 2

Let’s say you and your spouse both earn Rs. 10 Lakhs per year.

For the home loan, you repay Rs. 1,40,000 per year as principal, and Rs. 2,50,000 as interest.

If the home loan is in just your name, both these deductions would be available only to you – but subject to the upper limits (or caps). Thus, your taxable income would be:

Rs. 10,00,000 – Rs. 1,00,000 (for principal repayment) – Rs. 1,50,000 (for interest payment)

Which is Rs. 7.5 Lakhs.

The income tax saving would be:

(Rs. 2,50,000 * 30%)

= Rs. 75,000.

But if the home loan is in joint names, and both you and your spouse repay the EMIs equally, both of you would get equal benefits.

Thus, the taxable income for each of you would be:

Rs. 10,00,000 – Rs. 70,000 (for principal repayment) – Rs. 1,25,000 (for interest payment)

Which is Rs. 8.05 Lakhs.

The income tax saving would be:

(Rs. 1,95,000 * 30%)

= Rs. 58,500 each, or Rs. 1,17,000 total – an extra gain of Rs. 42,000 in our example!

 

Disadvantage of a home loan in joint names

There are these fabulous advantages of taking a home loan in joint names. So, is there any downside?

Well, as such, there is no disadvantage. But you might want to consider the following from a long term planning perspective.

If both you and your spouse are working, you might want to buy another house sometime in the future.

Now, the income tax act says that if a person has more than one house in his name, one of them is treated as self occupied, and another is treated as let-out – even if it is not actually let out on rent.

You would need to pay income tax on the rent received if this second house is actually rented out. But if it is not rented out, it is deemed as rented out, and you would have to pay income tax on an amount that you would have received as rent as per prevailing market rates.

That is, you pay tax on an income that you are not even earning!

Why is this relevant in our discussion? Because if you have your house in joint name with your spouse (which is a precondition for availing a home loan in joint names), and if you purchases another house in the future, it would be treated as your second house!

If you buy your first house in a single name, the other house can be purchased in the name of your spouse – thus, both of you would have just one house, and won’t have to pay income tax on an income that you don’t even earn!

(Of course, if you actually rent out the second house, this becomes irrelevant)

Again, as mentioned earlier, this is relevant only from a long-term planning perspective.

 

What should you do?

So, should you go in for a housing loan in joint names or not?

Take the home loan in joint names if:

  • You need a higher loan amount
  • The income tax savings by opting for a joint loan is significantly higher than a single-name loan

Avoid taking a home loan in joint names if:

  • You can do with the loan amount available as a single applicant
  • The income tax savings by opting for a joint loan is not significantly higher than a single-name loan
  • You plan to purchase another house in the future

Related Articles:

Comments via Facebook

Facebook comments

Comments

  1. Deepak Mehta says:

    1. income genrated from house which is rented can be divided in two parts for joint owners

    2. Amount paid to socities is deductabe for annual value or not

  2. Anonymous says:

    Hi Deepak,

    1. Yes, the rent income is attributed to both owners in proportion of their share of the house. Thus, both the owners would have to show the rental income in proportion of their ownership.

    Although, please note that the rent cheque can be in the name of just one person.

    2. Amount paid as municipal taxses is only deductible from the annual value of a house. Thus, if the amount that you pay the society includes such taxes, you can deduct that much from the annual value.

    Amount paid for maintenance and upkeep is not deductible, as the 30% deduction is to take care of these expenses.

  3. First of all a very neat and informative article for the housing loan taken by joint holders. But i have also read numerous articles saying your co-borrower can’t claim tax benefit if he/she is not a Co-owner of the property.

    For ex: I have purchased a house 2 years back which is only regsitered under my name. But the housing loan from BOB is on joint names of me any my wife. Iam only claiming the tax benefits from the past 2 years. Is it correct to claim interest and principal paid to the bank cut into half by both of us.

    Kindly elaborate.

  4. Dinesh Kaundil says:

    Hi,

    I and my wife borrowed a housing loan on joint name and have house also in the joint name.
    My Question is if we are paying EMI from one of our accounts say mine account. Can we both claim equal benefits of income tax.

    Or what should be the best approach to get maximum benefits.
    Thanks
    Dinesh

  5. Anonymous says:

    Hi Sujith,

    You are right – tax benefit is available to people taking joint homoe loans only if the property is also registered in joint names.

    If joint home loan takers are also joint owners of a property, the income tax benefit is available to both in the proportion in which they pay the EMIs – it is not 50% each by default.

    Thus, in your case, since the house in only in your name, you are right in claiming all the benefit for only yourself.

  6. Anonymous says:

    Hi Dinesh,

    If joint home loan takers are also joint owners of a property, the income tax benefit is available to both in the proportion in which they pay the EMIs.

    In your case, if you are paying all the EMIs, only you would be entitled to the income tax benefits.

    To get maximum benefits, we would need to consider the incomes of both you and your wife.

    As a rule of thumb, more EMIs should be paid by the person whose income is higher – this results in maximizing the tax breaks. However, we also need to consider the other sec 80C investments made by each.

  7. Thanks for your advise.

    What if my wife and daughter are co-owners and my son-in-law becomes a co-applicant for the loan with them? You are right that the combined income of my daughter & SIL is adequate for a loan of Rs. 12-13 lakhs. Hence, I need not be a co-owner or co-applicant.

    Someone told me that banks are reluctant to give home loan if Father OR Mother are co-owners of the property with married daughter. Is it so? What is the reason?

  8. I plan to buy a house at Delhi in the joint name of my wife and married daughter, primarily for my daughter. The estimated cost is Rs. 25 lakhs. The arrangement is that I will contribute my savings of about Rs. 12-13 lakhs as margin, balance Rs. 12-13 lakh is to be taken as home loan. While I will make some contribution towards repayment of loan, most of the repayment shall be made by my daughter and son-in-law.

    The issue is my wife is a housewife and has no own income. My daughter is employed and gets annual salary of Rs. 2.5 lakhs. Thus, the income does not qualify for a loan of Rs. 12 lakhs.

    I have salary income of Rs. 9 lakhs per annum but has only 5 years of service left. My son-in-law earns annual salary of Rs. 5 lakhs.

    Is it possible that me and my son-in-law become co-applicants (me for my wife and SIL for my daughter) so that total income gets enhanced and we get loan of Rs. 13 lakhs for 10-12 year tenure.

    Alternatively it is possible that all 4 of us become joint-owners of the property (25% share each) and so also co-borrower?

    Which option is better and acceptable to Banks?

  9. Anonymous says:

    Hello Mr. Basant,

    Banks would insist that each co-applicant is also a co-owner of the house.

    Therefore, the only feasible option for you is: all 4 of you should become co-owners and co-applicants.

    Note1: Please check with the bank if they would consider your salary even in this case – its better to check this as you have only 5 years of service left.

    Note2: Ideally, the incomes of your daughter and son-in-law should be sufficient to qualify for a 12-13 Lakh home loan. You can check with the bank if she can be a co-owner of the house with your daughter and SIL without being a co-applicant.

  10. Anonymous says:

    Hello Mr. Basant,

    As I mentioned, banks usually insist that each co-applicant is also a co-owner of the house. Thus, your son in law would also need to be a co-owner of the house. Of course, you should check with the bank if they would allow him to be a co applicant without being a co owner.

    I am not aware of the situation pointed out by you (banks are reluctant to give home loan if Father OR Mother are co-owners of the property with married daughter), and I do not believe this is the case.

  11. Anonymous says:

    Hi Solace,

    If you do not need to enhance your loan amount, you do not need to have someone as your co-applicant.

    Some banks might insist on a co-applicant, but you can try to convince them based on your income and loan needs.

    Also, some banks might need a guarantor for the loan, and may ask for a co-applicant if you do not have a guarantor.

  12. I am applying for a home loan, where in a I am a single applicant and I do not need any extra amount to enhance my loan amount. So, do I still need to include somebody as the co-applicant?

  13. Anonymous says:

    Hi Solace,

    This varies from bank to bank.

    Ideally, anyone with a steady income is a good candidate to become a guarantor.

    However, some banks might prefer a relative as a guarantor instead of a friend. So, the best option would be to talk to your bank and confirm this.

  14. Thanks for your advice.

    I have another query regarding single applicant, as you said banks may insist for a guarantor because I do not have a co-applicant, so in that case will my friend with a steady monthly income can act as a guarantor?

  15. surendra kumar says:

    I and my wife borrowed a housing loan on joint name and have house also in the joint name.

    HI,SIR
    my Question i will take joint hame loan or not .
    ( I and me wife same post. we are taking joint home loan 10,00000 my income 18000 and my wife income is also same )
    and
    My Question is if we are paying EMI from one of our accounts say mine account. Can we both claim equal benefits of income tax.

    Or what should be the best approach to get maximum benefits.

    Thanks

  16. Hi,

    My fiance is planning to take a joint home loan. Since we are not married, I cannot apply for a joint home loan with him. So he is planning to apply for a joint home loan with his father who will retire in about 2 years. After we get married in a years time, I would like to replace his father as a co-applicant and claim tax benefits. Is this possible?

    What would be the procedure to do that?

    What would be the implications on the house agreement and cost to be beared?

    Please advise. Thanks

  17. Anonymous says:

    Hi Summer,

    I do not believe a co-applicant of a loan can be changed mid-way. In any case, it would be prudent to check with the bank and clarify.

    If at all it is allowed, the minimum requirement would be that you should be a co-owner of the house.

  18. Anonymous says:

    Hi Yashodhan,

    Since you are paying the full EMI, only you can claim the entire income tax benefits (principal + interest) of the home loan.

    Also, the entire rental income would be considered yours.

  19. Yashodhan says:

    Hi,
    I am jointly owning a property with my wife and loan is also on joint name. We have got a rental income from the house as it is in the city different from where I live in. Currently my wife is not working and entire EMI is being paid by me. Can I alone take the entire benefit of interest paid after considering the rental income ? or both will have to be distributed 50:50?
    Please advise
    Yashodhan

  20. sir,
    I have to purchase flat in joint names 1st name will be of my wife and 2nd will be mine. if i take home loan in my name only as my wife doesnt work she is H/W. Can i Claim income tax benefit. if it is not let me know other best option

  21. Manisha says:

    I am paying the monthly installments in cash for the flat from the start when we buy the flat. My husband is a joint owner as per flat documents but he haven’t pay a single money for flat.
    I want to sale my flat as my husband is not cooperative. I have one daughter she is with me, currenty my daughter and me staying at my parent’s home. My husband is not allowing us to stay in that flat for which I am paying the monthly installment.
    Even though if he allows us to stay there he will treat us good way. He always drink and beat me.
    Can you suggest how to get my flat back from my husband as I want to stay in my flat only but not with my husband.

  22. Anonymous says:

    Hi Manisha,

    I am sorry to hear about your situation.

    But I am sorry, I wouldn’t be of much help here – this looks more like a legal case rather than financial.

    In any case, since you are saying that you have paid all EMIs in cash, there would be no bank account trail establishing that you have paid the EMIs.

    Therefore, please arrange some proof that shows that the EMIs were indeed paid by you.

  23. Anil sharma says:

    Dear Sir,

    I would like to know that iam in a process of Taking home loan from canara bank for extension of my existing house. But the property is registered in my fathers name. Can I claim income tax benefit on home loan.

    With Regards

    Anil Sharma

  24. Dear SIR,
    I am going to apply for a home loan soon. I work for a very small company having branches in India, UK, USA and China. Our company is pretty stable in the market and has a positive background too. I am in this company for the last 5 years. But my only concern is they have very less no. of employees here in India [lesser than 10]. Do you think on this ground my home loan can get rejected?
    With Regards,
    Solace.

  25. Anonymous says:

    My wife does not have any current salary income. If we purchase home only in my wife”s name, can I be the sole home load applicant and pay for it? Will income tax benefits be available to me? What if we are joint owner, can I then be the only applicant for home loan and pay for it?

  26. Anonymous says:

    Hi Anil,

    You would not be able to get any tax benefits. For availing tax benefits of a home loan, the house and the loan should be in your name.

  27. Anonymous says:

    Hi Solace,

    I do not believe you have anything to fear – your loan application should not face any issues due to the small size of the company.

    Have all your documents in order (salary slips, IT returns, etc), and you should be fine.

  28. Anonymous says:

    Hi Rajeev,

    There are 3 things you need to keep in mind:

    1. You should be a co-owner to get tax benefits of a home loan

    2. You should be a co-applicant of the home loan to get tax benefits from it

    3. Tax benefit is available in proportion of the EMI paid.

    Keeping this in mind:

    > If we purchase home only in my wife”s name, can I be the sole home load applicant and pay for it?

    A bank would not allow this. Loan applicant has to be the owner.

    > Will income tax benefits be available to me?

    No.

    > What if we are joint owner, can I then be the only applicant for home loan and pay for it?

    Yes. In this case, all tax benefit would be available only to you.

    But the bank might insist that you wife be a co-applicant of the loan, as she would also be the co-owner.

  29. Anonymous says:

    Hi Vinesh,

    If only you are taking the loan, and are paying the EMI, you would get the full IT benefits.

    The bank might insist that you wife be a co-applicant of the loan, as she would also be the co-owner of the house. But even then, as long as you are paying all the EMIs, you would get the entire tax benefit.

  30. Anonymous says:

    Hi Surendra,

    As noted in the article, tax benefit on a joint home loan is available in proportion of the EMIs paid.

    So, if only you are paying the full EMI, all the income tax benefit would also be available only to you.

    However, for operational ease, you can give all EMI cheques / standing instruction from your account. In this case, your wife can deposit the EMI amount for alternate months in your account.

    Then, you can claim that the EMIs are paid equally by both of you, and can get the tax benefits 50% each.

  31. Hi, Thank you so much for the information. It was really very relieving!

  32. bikash mishra says:

    hello sir

    my querry is i have taken a loan 20lac in 2004 and paying EMI, in 2008 i got possession, i have done some construction work and it completed in may, 2009.

    1.what is the income tax treatment , year wise ?
    2. whether condition of completion of the house within 3 years is mandatory in this case ?

  33. Anonymous says:

    Hi Bikash,

    There is no condition of completion of the house in 3 years for tax benefit on home loans.

    To know the tax benefit for pre-completion and post-completion periods, please read Income Tax (IT) Benefits of a Home Loan / Housing Loan / Mortgage

  34. Abhishek says:

    Dear Raag,
    Request you to throw some light on the issue: I wish to buy my second flat alongwith my spouse and mother as co-owners. However, EMIs shall be paid jointly by my spouse and me as my mother is a housewife.
    1. Will full IT benefits be available to both my spouse and me?
    2. Will the banks be comfortable with this arrangement?

    Regards,
    Abhishek

  35. Anonymous says:

    Hi Abhishek,

    1. Yes, IT benefits would be available in the proportion of EMIs paid. So, if only you and your wife pay the EMIs, the benefits would be fully available to you and your wife only.

    2. It should not be a problem. The banks may ask your mother to be a co-applicant, though.

  36. i have to purachase a house in joint names 1st name will be of my wife and 2nd will be mine and i have to take home loan in my name only. Can i claim income tax rebate on home loan. Pls note my wife is housewife she doesnt file I. T. retuns.

  37. Dear Sir,

    do accept my congratulations on running a fine website.

    i have a query regarding one of the replies you have given in your article on benefits of a home loan. here is the conversation:

    joint home loan

    Dear Sir, We ( my father & me ) have availed home loan to construct home at my fathers plot. Bank sanctioned loan based on my income since my father have no source of income iam repaying the entire EMI. Can i claim tax benifit for priciple & intrest repayment ?? thanks & Regards, thilagarbabu

    Re: joint home loan

    Hi Thilagarbabu, Income tax benefit of a home loan is available in proportion of the payment of the EMIs. Since you are paying all the EMIs, the entire benefit of principal and interest can be claimed by you.

    on the same lines, i have a query.

    i have taken a home loan jointly with my wife to construct a house on land owned by my father. my wife is not paying any part of the loan. nor is my father, however i am not able to avail any tax benefits because the house is deemed to be in my father’s name, since the land was in his name.

    now is it possible that i get joint ownership of the house with my father and avail tax benefits. also whether this solution will be any cheaper than getting the house property transferred to my name. the loan was sanctioned by the loan on the basis that i am an only child. will this factor anywhere in this equation.

    thanks a lot ankur

  38. Anonymous says:

    Hi Ankur,

    I can understand your pain, but there is no way you can avail the tax benefit in this case as the house was built on land owned by your father, and is deemed to be in his name.

    I do not think there is any way to get a joint ownership of the house with your father. The only way would be to transfer ownership from hoim to you. You should, however, also take advise from a lawyer in this case.

  39. Anonymous says:

    Hi Rahul,

    Yes, you can. Make sure you pay all the EMIs, and you can claim the entire tax benefit of the home loan.

  40. Anonymous says:

    Hi Harish,

    Thanks a lot for the liberal praise… I am glad I am being of help.

    You are right in your assessment that you would not be eligible for income tax benefits for the home loan. In fact, the bank itself might not grant you the loan since you are not an owner / co-owner of the house.

    I am sorry, but I do not know enough about the settlement deed to advise you! It would be better if you consult a lawyer who has experience in this matter.

    (I would do some research and write about settlement deeds – thanks for suggesting a good article idea!)

  41. Jagdish Rao says:

    Excellent site. I am really glad , I came across it atleast today. You have answered questions also very clearly.

    I have a query on taking Joint Hsg Loan for a apartment : I am staying in my own house in Gurgaon and am interested in buying a apartment in Bangalore in my wife’e name. Once I buy , I would give it on rent.

    My wife is a housewife. Hence I would be the co-applicant. I plan to take loan also in same way -my wife as prinicpal owner and myself as co-applicant .

    Query – Will any bank give loan in the way mentioned above. Second if we get loan what are the tax benefits , pl?

  42. Anonymous says:

    Hi Jagdish,

    Thanks a lot for your kind words… I am glad I am being able to help!

    Yes, what you are suggesting is possible. If you are a co-owner of the apartment and co-borrower for the loan, you can get tax benefits in the proportion of the EMIs that you pay.

    If you pay all the EMIs, you get all the tax benefits.

    I don’t think the bank would have any issues with this arrangement either.

  43. Dear Raag,

    First of all, I need to congratulate you for an excellent piece of information in this site. I was checking a lot on such an information, and I am really glad to see all info in a single place, with solutions clearly provided.. Well done.

    Unfortunately I too have a query to be clarified. I have applied a Home Loan but the property is under my mother name. I am the main applicant as I am salaried and my mother is the co-applicant. From the above information , I could make out that I am not eligible to get the income tax rebate.
    But now I am planning to change the owner ship from my mothers name to my name using a settlement deed to make use of tax rebate.
    Is it possible to apply for a settlement deed when the Loan is in place? Is it legal to get a settlement deed in this circumstance? Kindly advice me on the same on how to proceed.
    Thanks,
    Harish

  44. Swapnil says:

    Hi Raag,

    My query is regarding loan application on joint names!

    I am planning to purchase the property of worth 26 Lakhs rupees. I am eligible to borrow 85% of property value from bank. However to keep the EMI on lower side and to avail the tax benefit for my father, I am planning to avail the home loan on the joint names of my father and me. My father will also be a co-owner of the property.

    I am borrowing the home loan from HDFC and my father can get the loan from one of the government co-operative society. My father is in government service and he has left with only 5 years of service, hence I want to keep his share as low as possible say 3 to 4 Lakhs.

    Now in above scenario I am having two questions:

    1.Is it possible to apply the home loan from the two different financial institutions for the same property (I will apply from HDFC and my father from government society)?

    2.If answer of above question is NO then will bank (HDFC) approve the loan amounts in proportion of income of co-applicant? Or co-applicant should have equal income and only equal loan amount can be sanctioned by bank?

    3.Additionally can I nominate my mother as a co-owner without being a co-applicant?

  45. Anonymous says:

    Hi Swapnil,

    1. No, it would not be possible to get a loan from two institutions, as the house needs to be mortgaged to the institution giving the loan.

    2. When a loan is taken in joint names, a bank doesn’t give individual loan amounts. It will be one aggregate loan for the co-applicants. There is no clear-cut “share” of each person in the loan. The bank just adds up the income of all co-applicants so that a loan for a higher amount can be given out. The co-applicants can have different incomes.

    3. Yes, generally speaking, that should be possible. However, your bank might have some restriction – please check with your bank.

  46. Vijay Bhayani says:

    Sir, we are fortunate enough not to require any loan to buy a flat. We are a family of three (me, my wife, and a 17-year old son). We are Indian citizens but live overseas. For convenience sake, I am thinking of buying the house in joint name of all 3 of us so that if 2 of us die, the 3rd person can sell w/o any problem. Do you advise doing that? We will shift to India in 2 years but our son will live here. We do not want him to be caught in bureaucracy to sell if we 2 die and if he has to sell the place. That is my main concern. How difficult it is for him to sell the house if we 3 suddenly die if his name is not included? Thanks.

  47. Anuvrat Baranwal says:

    Hi! I have booked a flat and both my wife and I are joint owners. Both of us are also co applicants in the home loan from LIC.But LIC does not take EMI from two accounts and insists to deduct EMI’s from only 1 account.
    Both of us are tax payers. So is it OK ..if my wife transfers half of the EMI to my account every month and then claim for 50% EMI tax benifit.
    Please advise.

    Thanks
    Anuvrat

  48. Hi Vijay,

    I think you are thinking on the right lines. His name in the property should make matters smoother.

    However, I would recommend checking with a lawyer to confirm this.

  49. Hi Anuvrat,

    Yes. As long as you can prove that the funds have come from your wife’s account (through the account statement), she would be able to claim it.

    Another option is to open a joint account – both of you can deposit EMI money there, and the EMI cheque can be given from there.

  50. Dear Sir/Madam,
    I have the following query:
    I am planning to buy a second house worth Rs.50.0 L. Out of this I plan to get a loan of Rs.30 L and the balance will be contributed by my wife who is not working. The first house we have rented it out where only I am claiming the tax benefits. We are now staying in a rented house and intend to stay in the new second house. Can my spouse being the first applicant receive the rent and can I claim tax deductions in the ratio of our contributions. What are the advantages and disadvantages of my spouse or me being the first applicant.

  51. Me and my wife have take a joint loan for a flat which is jointly registered in our name. We were claiming a rebate of 1.5L each since the interest we paid was in excess of 3L. But the income tax officer we met a few days ago said that its not correct and we can only claim a total of 1.5L for any given property. He said that he would be opening my case and sending me a notice now. The AY is 2008-2009. I was just at loss of words because the fact is every one does this. Are there some hidden conditions because of which my claim might be invalid. We pay EMI checks from a joint account.

  52. Anonymous says:

    Hi H Kumar,

    The rental income needs to be divided in proportion of the ownership. So, if you are saying that your wife would be shelling out Rs. 20 Lakhs initially, and you would pay all EMIs for the Rs. 30 Lakhs loan, then even the rental income would be divided between you in a ratio of 2:3 – irrespective of who is the first applicant.

    Since you would be paying all the EMIs, you would be able to claim the entire tax breaks.

    Who is the first applicant would not matter at all.

  53. Anonymous says:

    Hello Singh,

    I do not see merit in the AOs argument.

    There is no hidden condition – as long as the house in in your joint name, and the loan is in your joint names, and both of you are depositing the EMI amounts in the joint account from which the payment is made, both of you can claim the interest upto the limit.

  54. dear sir,
    at last i hope i will get answer to my question.i will clear u my doubt.
    we have a flat in which my father’s name is first and my name is 2nd.for this flat i had applied for loan,we got the loan approved and after 5 years we repaid the whole loan amount.now my salary is more approx 5lacs now to save tax i am thinking to buy 2nd flat.pl suggest me now in this case buying a 2nd flat will really help me saving tax and also do i have to pay the rent amount just because i own a 2nd flat.
    also pl suggest can i buy a 2nd flat in my wife’s name,she is a house wife and for loan i will apply.my main intention to buy a 2nd flat is to get 100% tax saving.
    pl advise

  55. Hi Sunil,

    Yes, you can save tax by taking a home loan for a second flat.

    If you have more than 1 house in your name, you are supposed to have earned a “deemed” rent from such other houses. This is added to your income, and is taxed. Thus, you would need to pay tax on it even if you haven’t actually given the house on rent.

    So, the easy way out is to actually give it on rent.

    Wife’s name: If you are applying for the loan, you would need to be a co-owner. Also, if you pay all EMIs, you would be considered as the full owner of the house. So, the same issues as above. Thus, buying the house in your wife’s name would not help.

  56. Hi

    I would like to ask a query which none have probably asked above is if the property is in joint ownership and there is a divorce or there is an interest to purchase another house and one of the spouse would like to change the title of the property and handover the entire property to one of the spouse then what is the process ?

  57. Both the houses are under consstruction……one is in Hapur and one in manesar…..please let me know whether i can get the tax benefit out of any one or both?

  58. As mentined in the article, if one has bought 2 houses (1 on single name and 2nd on joint name) in different cities, one can reap the benefit of taxes, but what will happen in case both the houses are in Delhi NCR. Since NCR is a huge region, can it be taken as 2 different locations (approx 100kms away) and benefits can still be taken?

    Please advice.
    Thanks in advance
    Chandan

  59. Dear Sir,
    A very nice and informative site , pity I dint see this while I was doing the home loan search !

    Some queries if you can answer at your convenience :

    1 . For joint loans , who decides what the proportion of payout of EMIs is going to be ? A self declaration or is it in the ratio of income of the co applicants ? In my case payout is happening from my account and do I need to transfer funds from my spouse’s account to my account to prove that she is contributing to the EMIs ?

    2. I am currently paying EMI even though possession is due in Sep’10 . So what happens to HRA in this case , can I claim HRA tax benefit only till Sep’10

    3. Can I claim tax benefit on the intt payment and principal repayment only for the payments from Sep’10 to Mar’11 in this year , and claim benefit on payment from Apr-Aug over the 5 years as mentioned above ? Or can I claim it directly from Apr’10 till Mar’11 ?

  60. H.chandra sekhar says:

    Hi! I have booked a flat and both my wife and I are joint owners. Both of us are also co applicants in the home loan from HDFC.Both of us are tax payers. Is the proportion of EMI that we share is fixed or can be variable every year (since my wife will sresign her job after 3 years so that can i get toal EMI benefit)

    Please advise.

    Thanks
    chandra sekhar

  61. priyanka says:

    Sir,

    I would like to congratulate you for such advice on various types of querries which are indeed useful for lot of homeseekers like me. I am employed and unmarried. I have booked a flat in mumbai which not yet registered and the allotment letter is issued in my name. I will major financier. i)Can I be co borrower along with my father who has 4 yrs service left to avail separate tax rebate and ii) can I register the flat in joint name of me, my father, my mother( H/W ) and my younger sister? ii)Whether it is also possible to be co applicant only without being co-owner myself in sale deeds ?regards,

    priyanka

  62. Sir
    Kindly advice:-
    1. I have a house -free of loan -lying vacant -purchased under jt name , self paid and availed tax benefit as long as loan paid.
    2. I have another house – on loan – getting rent -purchased on jt name.
    3. Wife not earning anything.
    QUESTION 1 :-Can I show income of both houses rental income as wife’s income and apply for fresh loan?
    QUESTION 2:-ANY WEALTH TAX ON ME?
    QUESTION 3:-In case I take loan and put on rent how tax liabilities would be calculated?

  63. s c srivastava says:

    whether I will get tax rebate on purchasing of residential plot

  64. Sir,
    Never seen such a useful site like this. Very informative and that make me rethink about method of purchasing new house.
    The scenario is that
    a)My husband is having a house in his name and having a loan outstanding of 3 lakhs .Being a loan taken before 10 years major part of emi goes towards principle(around Rs 50000 per year)
    b)Now we booked a new house and plan to get housing loan from BOB. To get 20 lakhs I need to be the co applicant(They don’t insist me to be co-owner)
    c) i have an anual income of Rs 1.8 lakhs and my husband have Rs 4.5 lakhs
    d)being in same city the second house rent should be shown by my husband.
    Considering the above facts Please suggest whether it is beneficial in long term that me to be co-owner .If so, the new house will be my first house and i need not show rent But the whole rental part adds to my husbands taxable income.Please correct me if there any mistake in what i understood.
    thanking you

  65. Hi ,

    Can we claimed/decleared the registartion and stamp duty for the new flat to get the tax beniifit ?

    Flat was registered in 2009-2010 & possesion will be getting in the August 2010.

    Thanks in advanced !
    Archana

  66. My wife and I have availed a housing loan in joint names and my name being the first applicant. We repay the loan from a joint account and again my name being the first applicant of the bank account from which the EMI is paid. Can both of us claim rebate under sec. 24 and 80C?

  67. Diwaker Bhatahi says:

    Hi,

    We are planning to build our house in chennai and at present we leave in Delhi.

    If I take home loan to build house in chennai, would i get tax benefit?

    Also the property is in my wifes name and we both are co-applicant in loan documetns and I would be paying the EMI’s.

    Please suggest.

    Thanks
    Diwaker

  68. I and my father jointly took a home loan. Home is registered on my father’s name. Entire premium is deducting from my account only. Can i take tax benefit for entire premium or not?

  69. Sir,
    My Father owns the house and we planned to avail housing loan for extension-construction. I am the only earning member of the two. But I cant avail the tax benefits as I am not the owner of the house. My Father is willing to share the 50% of the property(in whole) as gift settlement to me, so that i will also be a co-owner of the property. In this case, can I avail the tax benefits and is there any issues in getting a housing loan if we do like this?

  70. Hi,

    Taken a join loan in ICICI bank and then shifted to BOB. In Icici it was from my account the EMI was paid and now in BOB it is paid from join account. My wife is not working and whole loan is paid by me and transfer from my salary account. She has nil income and file the nil return also. Till now I was availing the whole loan deduction and now my company has deducted 50% of interest i.e75000/- saying that its a join property so only 50% will be give. Pl advice what should I do?

  71. Hi,

    We husband and wife both are working. My husband took a home loan and I was the co applicant in the same, as the property is on my name. Actually, my husband only pays the EMI and i dont want to take any benefits.
    Now, when my husband asked for hom loan benefits in his company, he was told that he cannot get loan benefits as this is a joint loan. Please advice what should we do?

  72. S N Banerjee says:

    Sir, I am a civilian defence employee at Agra. My wife is an UNEMPLOYED house wife. The points to be considered are :
    (a) The house is registered jointly in my & my wife’s name, where I am the primary owner, and she the secondary.
    (b) Bank has lent out the loan in a “joint” version.
    (c) I, being the sole earner for livelihood, have been paying the EMI’s regularly.
    (d) My employer says that I am entiled for benefits in I/Tax against “home loan” just by half; ie 50% only.
    Is the employer’s observation is correct as per the rules ?

  73. Manoj choudhary says:

    Hello Sir/M’M,

    I am purchasing a flat in apartment at location Indirapuram,Ghaziabad.
    For this flat my wife is co-applicant.

    For the flat I have taken a home loan from Bank of Baroda, New Delhi.
    As per the norm, Flat is insured as primary holder on the name of me & secondary on the name of wife.

    In future, in case of mishappen with me (if I die).
    Will my wife will be responsible to pay the remained EMI for the Loan.

    Thanks in advance for your reply.

    Regards,
    Manoj

  74. Hi,

    I am a co-owner with my wife in one of my flats in mumbai. The loan and emi are being taken care by my wife for this house, I am the co-borrower for this home loan.

    I have also co-ownered and co-borrowed for another house with my sisters.

    So, now I have 2 houses where I stand to be the co-owner and co-borrower.

    Will I have to consider my second house as a deemed rented out eventhough I am not claiming any tax relief on house 1.

  75. Virender Singh says:

    I have purchased a flat from DDA under DDA housing scheme through draw of lots. I want to know the benefit of exemptions which may be availed under section 24(b)/80C(2). Kindly arrange to give reply considering the details given below:-

    1. Property purchased through draw of lots – DDA flat
    2. Registered in the name of Myself
    3. Cost of Property 35,54,401/-
    4. Funds arrangements - 5,54,401/- by self means and
    Rs. 30 lakhs – Home loan from ICICI Bank
    NOTE :- (i) Loan is given to me & my brother as co-borrower, both are in government job. (ii) Though the property is registered in my name; the installment of loan (EMI) is deducted from the salary account of my brother, as the salary of my brother is higher than me. (iii) Monthly EMI is Rs. 29,105/-
    My question is :-
    (i) How much %age of amount in respect of interest/principal may be claimed by me and my brother under section 24(b)/80C(2) respectively?
    (ii) Can I alone claim 100% for deduction of income tax as I am the sole owner and my brother is only co-borrower from the bank?

  76. RAJU BAJAJ says:

    we hav a flat and having a home loan from sbi. we r both husband and wife taking the tax benifits. now we r planing to buy a new flat and take a new hoem loan as well. now wht wil be the tax benefits that we can claim?
    can we both claim loan principle repayment amount under 80c upto 100000and interest upto 150000 under 24. do we have to give a flat on rent to get the tax benefits. do we hav to pay tax even we dont rent it out?
    give a example, like we both paying for both flats a principle amount 180000 + interest 22000. wat we can get tax exampt like 90000 under section 80c and 110000 under section 24.
    is being owner of two flats rejects the chance of geting tax deduction > please advice me as early as possible with an example for me get understand the factor.
    mobile no 9434145081

  77. Neenu Baskar says:

    I have a property registered in my name. For loan, my husband is the main applicant and I am co-applicant. The EMI was paid by both of us. I would like to know if I can sell the property even if my husband is not willing. Or do I have to get a NOC or any letter from him? Please advice.

  78. I am planning to take home loan with co-applicant as my Father. But my Father have only 8 years left for service. But I can pay it further till the whole repayment.
    Can we both apply ? And I want the house only in my Father’s name.

  79. Hello sir,

    I already have one house in my name (self-occupied) and want to buy another in wife’s name. My wife is working (salary about 10K p.m., hence not filing returns). In such a scenario, can I take home-loan jointly with my wife as first applicant and me the second? Anyways, all EMIs will be paid by me.
    Is there any tax benefits out of this? I am already availing the benefits from my first house (though less than the limits)

    I would be extremely thankful if you could guide me on this.
    Regards,
    Deepak

  80. Hi ,
    First of all thanks for giving such a valuable info on this time.My query is regarding the know the ratio in which we divide our EMis.
    My income is 6lakh and my husband income is 16 lakh/annum.and we r planning to take loan of 30 lakh for 15-20 tears.

  81. Arvind Mathuria says:

    First of all I would like to congratulate for providing great informations in very simple words. Never seen such a useful site like this.

    My question is:
    I have purchased a residential plot in my name by taking loan of 10 lakh as a coapplicant with my wife. But EMI’s are paid fully by me. Whether I will get tax rebate on purchasing of residential plot.

  82. hi
    i have a query on home loan. can someone please respond / reply my query.
    Thanks in advance….
    If I am purchasing a property. Sellers are joint holders in property. they have requested me to pay amount to them in 50/50 % to each holder’s name.

    as well they have also requested that BANK Homeloan disbursment should also happen – to both the holders in 50-50% ratio.

    is this possible ? can my homeloan provider bank do this ?
    if I do payment to both the party due to purchase of properties , will this have any impact on my books of accounts. can I do this ?
    Kindly provide respond to my above queries…
    Note : – both parties are joint holder and their names appearing in property agreement.

    Thanks
    Ritesh Shah

  83. K.K.Ghosh says:

    I want to sell my flat (jointly hold by me & my wife,a housewife) at Nasik. I want to invest the entire amount of capital gain in buying a flat at Pune. Actually my son will buy the new flat, I will be a co-owner for the purpose of saving tax on my capital gain.
    My questions are :
    1) Can I get the capital gain tax free, if it is less than my share of contribution ?
    2) Will there be any problem for my son in getting home loan from a bank ?
    3) My wife is not taxpayer / non-borrower, will she be considered or not for capital gain for selling our existing flat ?

    • 1. Yes
      2. No, but the bank may require you to be a co-borrower since you are a co-owner of the new flat.
      3. Yes. Capital gain tax is separate from tax on regular income, so she would have to pay it even if she is not a taxpayer. Of course, she can save the tax if she also invests in another property or section 54EC bonds.

  84. Me and my mom have joint home loan and joint owners of the home.We both stay together.
    I have paid my home loan that i have taken for the house. Now can i pay rent to my mom and claim HRA. My mom has no income , i can file income tax return for her for this rental income.
    is this allowed ???

  85. I have taken home loan jointly with my father for extension of our existing house. The house is only on my father’s name but he is retired from service .The loan on his name alone was not possible and as the house is not in my name so for extension of that house,loan was also not possible on my name alone ,hence loan has been sanctioned jointly. The EMI for the house loan are being paid by me .My father’s pension is below two lakh .So he doesn’t file ITR .Can I claim Income tax benefit for this home loan .

    • The tax benefit is available in the ratio of EMIs paid. So if you are paying 100% EMIs, you can claim 100% tax benefit as well.

      • Senthilkumar.M says:

        Dear Sir,

        I am facing the same issue as Johny.I have taken home loan with join loan account with my mother and EMI is fully paid by me.My company is not accepting home loan ( principal +Interest part). They are insisting me that Property should be in my name.They rejected my home loan for Tax benefit.

        I would like to take legal opinion on this.It is going to cost me Rs 30000 loss if my home loan is not considered.

        Please let me know how shold I take this forward.

        Thanks for your valuable time.

        Regards,
        Senthil

  86. anonymous says:

    I am an NRI and wish to sell my property in India. Does buying a residential property in the US save me from LTCG tax from sale of property in India?

  87. i have taken a home loan from sbi bank and my wife is a gauranter/co applicant. the house is registered jointly on our names.
    now we r getting a rent of 5000 p.m. that makes it to 60,000 per year.my wife is house wife.
    1. Can i show this rent as her income and then show that some percentage of EMI is being paid by her also.
    2. Can i claim for tax benefits for both

  88. Sachin Khadabadi says:

    Thanks for your elaborate explanation.
    My doubt is as follows:
    My father already owns a house. He wants to extend it further and wants to take a housing loan. He is not a tax payer. I am a salaried employee. We are planning to take loan in my individual name or in joint name along with my father. The loan will be repaid totally by me. Therefore in such a case can I claim the deduction even when the house is not in my name?
    Please suggest any other way in which I can claim deduction.

  89. Hi Sir,
    I already own a 1 BHK flat in Mumbai for which i had taken a home loan and have fully paid it 3 years back.
    Now me and my wife are planning to buy a 2 BHK Flat in Mumbai (same area) for which we would need to take a Joint Home Loan to be able to pay for the cost of the flat. We cannot sell or rent the 1 BHK as we have my parents staying there.
    I had a few questions
    1. As i already own a 1 BHK flat, will i still need to pay tax on notional rent? even though i no longer have a home loan on this flat and neither am i claiming any tax deductions on it?
    2. I read somewhere that as this would be my second home, i would need to pay a wealth tax. Is that correct? If so how much would it be?
    3. Will i be able to claim tax deduction of principle amount paid upto Rs.1 Lac on my second home loan?
    4. My wife does not own any flat and has never taken a home loan, can she claim tax deduction on both Rs.1 Lac Principle and Rs.1.5 lac interest per year?
    5. Can i claim tax deduction on the money paid towards stamp duty and registration for the 2nd flat? I remember doing something similar when i bought my first flat, is it still feasible?
    6. Is there a possibility to claim tax deduction on property tax that i will pay for both the flats every year?

    Thanks and Regards,
    K

  90. Amit Godse says:

    Hi,

    I wish to buy a property in which Me, My Both Parents are co owners.
    To increse the Home Loan Eligibility can we include my Sister who is already married as a Co owner and co applicant to the loan.
    She is a salaried person.

    Please advise soon.

    Regards,
    Amit

  91. I am single, I want to purchase home in my name with loan from bank. After getting married can my wife become a co-owner of the house and pay the loan amount with me?

  92. I and my wife have taken a joint home loan but my wife is the owner of the house. Though both are paying the home loan emi, i understand that only my wife can claim the tax benefit. Is there any way I can claim the tax benefit as I’m also paying the loan amount. What is the formality to become the co-owner of the house. the papers are in the bank.

  93. I am lone earner in my family of 5 with 2 brothers and 1 sister (married). My father is not getting any pension. In 2007 I purchased a plot of land in my father’s name and started constructing house (80% is complete). I paid for purchase plot and construction of house from my bank account by transferring the money online to another account.

    Now I want that my father transfer the plot to my name so that I along with my Wife own the house and my brother I paid for his education) earns and purchase house for his own. But my parents are reluctant to do so. They are of the opinion that we both should stay there.

    Pls advice.

  94. My wife is a home maker.I want to purchase a house on my wife’s name and pay for the loan. I don’t want to purchase jointly because I am still in undivided family.

    Pls advice

  95. If a flat is in my name and my sons name jointly, when it is rented out, can the rent agreement be signed by me only as the owner though I am the second name on the flat agreement?

  96. Chinta_money says:

    My father is an allotee of DDA flat…
    He has retired yrs back.
    I will be taking loan for this alloted DDA flat ….
    We are 3 brothers and in future i don’t want to go into any legal hassles regarding the property…..i would be paying all the EMIs ….now i want to know what should i do ? Should i apply to get my name as co-allottee …but here also i might run into legal hassles in future as my fathers’s name will be still there…..
    Or please advise ……

  97. Thanks for the information provided here, it is immensely useful and elaborative……..

  98. Sumit Kumar Upreti says:

    Dear Sir,

    I have applied for a joint home loan for a property at Dharuhera.
    1.Can I register the property only in the name of my wife if the Buyer Seller Agreement is on joint name?
    2. Will I get any Income Tax Benefit on this loan amount?
    3. Will there be any complications in future in case I am not a co owner?
    Pl reply

  99. recently my father had some capital gain against sale of certain piece of land. he wants to invest this money in an appartment which I intend to purchase.
    1) is it essential for him to be a co-owner to claim the income tax benefit
    2) i was told by the bank agent that only being a co-applicant makes my father eligible for the rebate, kindly advice

    my father is retired and hence we do not have a great tax saving advantage in being co applicants

    could you please elaborate about responsibilites of a co-applicant

  100. I consturcted a residential House( For self occupation) 12 years back and availed House loan tenure of 10 years. Loan has been repaid completly. As the land on which House was constucted is in the name of wife( Homemaker, Agriculturist & IT assesse), I would like to gift this residence to her.
    Now I intend to purchase one residential flat (with home loan) to avail income tax benefit. What is the tax implication if it is let out or kept vacant & if original House is let out and new flat is self occupied.

  101. ranjit kirtania says:

    recently i have booked a flat, whats are the document to be required for HB loan from LIC jointly with my wife.we are both Govt employee.

  102. Hi,

    All that stated above holds good in case of joint ownership only if the bank is providing two repayment certificates. But banks only provide one certificate in case of joint ownership / co-applicants / joint repayments interest deduction whereby one person is stated as primary applicant and second as co-applicant. The income tax department gives benefit only to the primary applicant submitting the original certificate. I am searching for a bank which can give two certificates for same property held jointly.
    Can anybody suggest me a bank which gives two certificates to the two join owners.

    Thanks in advance.

  103. Ashish Gupta says:

    Hi

    Dear Sir,
    I, Ashish Gupta resident of J&K State. ”
    I and my mother have applied for a joint home loan for constructed residential house and the property is in the name of my mother and the first name of loan holder is my mother. My mother’s income is higher than tax limit and my income is less than tax limit, So, Please clear my confusion, the tax rebate is not use of my side and the total rebate of my mother is what ? 100% or 50%. Please comment with rules from income tax department which is helpful for understand our departmet to cut tax or not.

    The income detail and saving details in next comment.

    Pl reply

  104. Dear Sir, Can I help my childhood friend to have home loan [jointly] as her income is not sufficient for eligibility. I am NRI and i am ready to show my income proof and necessary docs for this. She is staying with her kids in rented flat, I need your advise and help in this issue, how and in what way i can help her to avail home loans and purchase a home for her. Eager to read your reply sir.

  105. Hi,

    Can I apply for a Home Loan on my name single and register for the property jointly with my wife. I believe both are independent process and should be possible.

    Regards,
    Ginni

  106. Fredrick Smiles says:

    Dear Sir,

    I wife and my married daughter purchased a flat. Both of them are working and they are income tax assessee. Can they claim income tax rebate 50% equally. What is the proceedure for claiming the rebate. My son-in-law is along working. Kindly clarify

  107. B.Venkateshwarlu says:

    sir,
    I have applied for housing loan along with my wife,as a co-applicant.
    I wanted to register the property on my wife’s name, and she is house wife not having any income source at all.
    I am a salaried employee in railways. now the problem is am I eligible to claim all income tax benifits or not, if not why?
    please clarifly.

    Venkat.B

  108. I have taken house loan jointly with my wife,I have purchased house (which was under construction) in both name.My wife is housewife and is not taking tax benefit.I am paying full amount of EMI.
    Now my house is ready for possesion and I have to go for registry.
    Please advice should I register the house only in my name to take full benefit tax rebate of interest or is there any workaround if I register in both names.

  109. Me and my Wife both are working. We have a joint Housing Loan. Both have taxable income. All the EMI is going from my Saving account. My Question is.
    1) My wife is eligible to claim the Principal and Interest.
    2) Can the Principal and Interest be divided to suit our needs.

  110. Hi

    First of all I would thank you for providing such a usefull information to people. your articles are really good & informative & to the point. need some soloution on my isues:

    1) We are a five member family i.e. My father, My mother, Me, My spouse & My brother.
    2) Now we want to one flat of 4 BHK. but the problem is if i buy one flat of 4 BHK than i cannot club my & my spouse & my brothers income to take a loan. And my & my wifes income is not sufficient to take loan.
    3) so we decided to buy 2 Flats of 2 BHK. First flat in My fathers name but the co applicant will be me & my wife & second flat in my mothers name & the co applicant will be my brother. pls advise what complications we will face to do so with terms of browing loan & than taking tax benfits.
    4) also confirm that my father is only owner & will not repay any loan but me & my wife can become the co applicant and keep paying the loan amt & also can we both take the tax benefit of principle amt & interest. also after my loan amt is paid fully can we claim HRA by paying the rent to my father for the same property as legally we are not the owner of the flat.

    pls advise how best way we can use present & future scenerio to take full benefit. Thanks in advance & i must say you guys are doing fabulous job by providing us information.

  111. Hi,
    My wife and I jointly own a house. My wife was employed till a year back. We have repaid the home loan when she was working. Now we stay in that house. Can I claim the money I pay to my wife for her personal expenses as rent paid for her share of the property. She will file returns for that money which I pay her.

  112. Hi,
    I am in chennai and have booked a flat which is under construction along with my husband (Joint name). Both of us working. Interest is being deducted from my husband’s salary account only. We did pay in bulk upto 4L in 2010 april (i think it includes the duty and registration charges) and from then we have being paying PRE-EMIs of around 21,000.00 per month. I need to submit my documents now in office for tax deduction. They said they cannot calculate the PRE-EMIs interest. EMI’s paid after the aquisition will only be used for tax deduction. After reading your page I now know that I can claim this PRE-EMIs after aquisition at 20% for the next 5 years. All I want to know is about the 4L that I paid in bulk, which is the 10% of the principal amount. without which they said thay cannot register the flat. Can I show this 4L under principal amount for this years tax exemption.

  113. F.Kingstan says:

    Hi,
    6 months back I built a new house in Tuticorin. That land registered in my wife name, so the housing loan already sanctioned for my wife name. But she is not a working girl. She is a house wife. I am working in MNC in local. Every month I pay EMI Rs.9000/- to the bank for my wife’s housing laon. Already I pay every month Rs.1500/- for income tax from my salary.
    Can I get benifits for income tax relaxation for my wifes housing loan. Pls clarify.

    • Me and my wife has taken the home as co- owner and also taking home loan as co- applicant . But in the Bank’s form ECS facility is available for only my account or one account . In this case How can I make the contribution of EMI 60 :40 ratio and how or what is the document required to avail the tax benefit in the same ratio.

  114. Arvind Hatkar says:

    I Arvind Hatkar and my wife Archana Hatkar both are salaried. We have taken home Loan in Aug 2006. Arvind is Main Borrower (Main Applicant) and Archana is Co-borrower (Co-Applicant) for Housing Loan. We are repaying(EMI) HDFC House Loan from our joint savings account.
    From 2006 to 2011 (5 Years) Me Arvind has taken tax benefit (100% of interest component & principle component) of home loan.
    Now when the interest & principle component is increased beyond 1.5 Lac & 1 Lac respectively, I come to know that both of us (Arvind and Archana) can take 50%-50% advantage of interest component and principle component of my house loan repayment.
    On the other side again someone said that since you have taken 100% tax benefit for last 5 years (2006 to 2011), now you cannot change it.
    Sir, I would like to clarify this. Let me know now (After 5 Years) can we take 50%-50% Tax Benifit of interest component and principle component of my house loan repayment.
    Please reply me.

  115. Arvind Hatkar says:

    I am visiting this site around 10 times in a day for my reply. Please let me know how much time it will take for my reply.

  116. Dear sir, i have bought a house in name of my wife . but we have taken a joint loan from the bank . EMIs are paid by me only. am i eligible for tax rebate?? please reply

  117. Sampath Kumar says:

    Sir, I have one flat in joint name with my wife. 2 loans were taken ie., by me and by my wife. The house is rented and the rental income is shown as income in our Form 12 C. Both of us are claiming the tax benefit under Sec 80 C and Sec 24. I am buying another flat in my name(single and not joint name) and has availed a loan from HDFC. The flat will be rented out soon. Am I eliglible for ant tax benefits for the 2nd flat? Kindly clarify.

  118. Cyril DSouza says:

    I have a apartment in Mumbai which is jointly owned by me and my parents. My parents live in my home town. The house is fully paid for by me from my income. For the purpose of tax planning can I start paying them rent and start claiming deductions under the Income Tax ?.

  119. Hello Sir
    We are two sisters working in the same company. We stay with our parents in the same house.
    Can we both enjoy HRA exemption.
    Your reply will be appreciated.
    Thanks & Regards

    Uzma

  120. can a friend with steady income be a co applicant for a loan he is a co-owner of property with me

  121. My spouse and I stumbled over here by a different website and
    thought I might check things out. I like what I
    see so now i’m following you. Look forward to exploring your web page
    yet again.

Speak Your Mind

*

More in Income Tax, Loans, Real Estate
Income Tax (IT) treatment of House Rent Allowance (HRA)

Most of the salaried people get an allowance for taking care of the rent that they pay for their home....

Close