What may be the Best Joint Home Loan scenario for Tax benefits

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  1. Vishwas Kulkarni

    Vishwas Kulkarni New Member

    Hi,
    I am planning to buy a flat @Rs.40,00,000.
    I can have my brother as the co-applicant.

    Can someone confirm following-
    1. Would it be possible to avail two separate loans on a single property (20 Lakh each)? This way we may be able to avail lower interest rates as well as claim deduction under section 80EE?
    2. In case of a joint homeloan, is there a significance of who re-paid how much of the loan?
    3. If we avail a single homeloan (as coapplicants), could both of us avail FULL Interest deduction as none of us plan to occupy the property (its a ready possession flat)?
    4. Are there any typical issues in joint home loan (not personal ones, but taxation related)
    Tx.
    Vishwas
     
  2. Neha Sharma

    Neha Sharma Active Member

    1. To avail benefit of Section 80EE you can avail 2 home loans in the name of 2 different persons. Therefore the property should also be in the name of 2 different persons

    2&3. The person in whose name the loan has been sanctioned and who is repaying the loan can only claim the tax exemption
     
  3. VAIBHAV DILIP RANE

    VAIBHAV DILIP RANE Active Member

    If you are planning to buy a Residential Property in Joint Names, than avail a Housing Loan also in Joint Names,

    You can make necessary arrangement with your Banker / Financial Institute regarding payment of Installments,

    When a Residential Property is in Joint Name, and a Housing Loan A/c. is also in same Joint Name,...

    Then you can claim HL Interest paid under section 24 of the act, and also HL Principal under section 80 C,... in Proportion among Joint owners, as their share mention in purchase agreement of a residential property,

    However, I am not sure, about New Section 80EE whether proportion benefit avail or not.

    First make sure, you are eligible for 80 EE or not.
     
  4. NIRAJ JAIN

    NIRAJ JAIN New Member

    80EE Tax Rebate


    First time individual homebuyers can get tax deduction on interest of home loan, under newly inserted section 80EE of the Income Tax Act, applicable for assessment year 2014-15. This is in addition to tax rebate on interest payment of home loan, under section 24.

    Eligibility for 80EE rebate

    This rebate on home loan interest is applicable only for home loans satisfying the following conditions:

    i. Loan is sanctioned by a financial institution or housing finance company between 1st April 2013 and 31st March 2014.

    ii. Loan amount is Rs. 25 lakhs or less and cost of residential house is Rs. 40 lakhs or less

    This should be the only house owned by the taxpayer at the time of sanction.

    Maximum deduction limit under 80EE

    Up to Rs. 1 lakh can be claimed towards interest payable on home loan in the financial year 2013-14. If interest payable in this year is less than Rs. 1 lakh then the balance can be claimed in the following year.

    For instance if interest payable in FY 2013-14 is Rs. 75,000 then tax rebate on remaining Rs. 25,000 can be claimed in FY 2014-15.

    The amount claimed under 80EE cannot be claimed for tax rebate under any other sections in any year.
     
  5. Neha Sharma

    Neha Sharma Active Member

    Deduction under section 80EE was only for financial year 2013-14 and has not been continued for the year 2014-15 in the recent budget announced by Chidambaram
     
  6. NIRAJ JAIN

    NIRAJ JAIN New Member

  7. anurag1413suj

    anurag1413suj New Member

    Assuming

    I take a Joint home loan along with my mother and buy a flat in which I am owner and she is co-owner but all EMIs are paid by me and no EMI is paid by mom.
    Can I have take tax benefit on total amount of interest paid by me or am i entitled for only my share of interest amount which is 50% as my mother is co-owner??
     
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