Joint Home Loans
In my previous blog I have written about the Home Loans and Tax Benefits. It covers most of the part in utilizing the Tax Benefits, If you are applied for the Home Loans. But, the mentioned blog overs only about the individual Home Loans and not explaining anything about the Joint Home Loans. By applying the Joint Home Loans, you will get the maximum benefit on the Tax Saving. This blog will writes about the Joint Home Loans and rules applicable for applying the Joint Home Loans.
Basic Rules on Joint Home Loans
- Minimum of 2 and Maximum of 6 applicants can take a loan. Home Loans cannot be applied by more than 6 persons jointly.
- The rules says any six persons can join and take a loan, but the banks and institutions insist more restrictions co-applicants. The restrictions are as follows:
- A Joint Home Loan can be taken by Husband and Wife or Parent and Child.
- Friends cannot take Joint Home Loans.
- In some case brothers are allowed to take the Joint Home Loans.
- Banks insist that, co-owners must be co-borrowers for the Home Loans. It is not necessary that all the co-borrowers must be the co-owners of the house.
Advantage on Tax Savings
- It is more advantage when you are taking the Home Loans jointly. It provides maximum benefits on Tax Savings. It is advised to take Joint Home Loans if you are a married couple and both of you are working in a company. This will maximize the Home Loans eligibility and increase the Tax Savings.
- Take an example, Santosh is working in a MNC and his gross earnings is Rs.600000 per annum and his wife also working in a MNC and her earnings is Rs. 400000 per annum. Here both of them falling into the category on tax payment. Now, they are looking into the better plan for Tax Savings. If they are planning to apply for a Joint Home Loans of Rs. 20 lakhs, I would say they are on the right track. Because of the following reasons:
- Investing on property is always worth and future value will be increased.
- Since they are applying for the Joint Home Loan, the maximum loan amount will be higher.
- For the loan amount of Rs.20 lakhs, for example the principal is Rs.150000 and Interest Payable is Rs.250000. They are eligible for the total amount Rs.500000 under the section 80c and 24b. Principal Payment for both of them is (1lakh x 2) and Interest Payment for both of them is (1.5 lakh x 2). In this case the total amount of Rs.400000 will be deducted in the tax. The above example is not calculated based on the Interest Rates and it is just an example to explain you the process. I think now you will better understand the importance of the Joint Home Loans.
- The above assumes that both are equally repaying the loan amount. In another scenario, they are taking the Home Loans in the proportion of 60:40, then the Tax Savings on the repayment also will be in the same proportionate.
Summary
I think I have covered most of the facts about Home Loans and Tax Benefits on my Previous Article and this article. I have heard there is Home Loan Rate Cuts from the ICICI Bank. I am collecting fact on the news and will be ready for the next article soon. Till the time read this article and will meet you on my next article. happy reading!!!
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April 27, 2011 at 11:39 pm
Hi Krishna
Please clarify to the following.
Will I get tax exemption if the property is on my Father’s name & and House loan is on my name as I am only paying 100% EMI’s for the loan?
Regards,
Ranga
June 6, 2011 at 4:48 am
dear sir,
I HAVE AVAILED HOUSING LOANIN JOINT WITH FATHER IN LAW, OF RS. 11,00,000/-. I AM THE FIRST OWNER & HE IS CO OWNER, BOTH OF US R WORKING,
1)HOW CAN I AVAIL MAXIMUM TAX BENEFITS , HE HAS 3 YRS REMAING SERVICE,
2)CAN BOTH OF US CAN AVAIL INTEREST REBATE OR
3)HE CAN AVAIL 100% REBATE?
4)IS IT COMPULSORY TO PAY INSTALLMENTS FROM JOINT ACCOUNT ONLY?
PLEASE GUIDE ALL WAYS I CAN TAKE MAXIMUM TAX REBATE,
JAYSHREE VAGHELA
June 9, 2011 at 11:29 pm
for joint loan:
applicant his working in aboard…. he wants to take joint loan with his mom and sister is this possible??????
Thank you
June 24, 2011 at 11:02 pm
Dear sir,
in case of a sale of house owned by joint owners,
exemption of capital gain tax will be granted to both owners
June 27, 2011 at 10:18 pm
When a joint home loan is taken @ 60 : 40 ratio, whether banker will give seperate Tax certificates ? if not, shall we on the same Tax certificate claim seperately the Tax benefits (Principal & Interest benefit)
July 20, 2011 at 10:12 pm
Ihad taken loan from private bank in which my wife was co applicant which was later shifted to my employer in which only my name is there as there is no provision for inclusion of my wife as co owner. at present I am paying EMI from my salary deduction per month to my employer & property is jointly registerd in me & my wife name.
My company is giving lease rental in 50: 50 ratio on different names ( Me & my wife seprately) & on different PAN no belonging to my wife & mine. Can we claim tax benifit separately as per rental received from compny or i will cliam 100%. My wife is housewife not working but still earning money from my employer ae lease rental. Pls. suggest.
July 21, 2011 at 5:31 am
Hi,
v both r wrkng n planning take a flat of 68lkhs aftr sellng our own flat for 52 lkhs, my husband has a loan repaymnt of 10 lkhs so his bank is going to provide 28 lkhs if v apply jointly. My ctc is 2.92 lkh & my husbands ctc is 3. 00. For him rt of int is vry less being the staff, n for me it wud b 13%. Is it posble that he can apply 17 lkhs frm there , i can apply 11 lkhs frm dhfl? Plz help , awaiting for revert
August 16, 2011 at 11:33 am
I WANT TO BUY A HOME. I HAVE TAKEN LOAN FROM MY BROTHER WITH INTREST. I HAVE PAID MONTHLY EMI. CAN I APPLY FOR TAX BENEFIT U/S 80C & 24. PL. GIVE ME REPLY
August 18, 2011 at 4:14 am
hi krishna ! i am staying and working in hyderabad. i want to buy a flat in mumbai with joint home loan with my brother in 100:1 ratio. he is having a business there. i want to know folowing.
1: can i get get tax benifit of 1 Lakh in 80C and 1.5Lakh of 24B as propoerty is located in mumbai not hydrabad?
2: can i make my brother as first owner while myself paying the full EMI?
thnks
September 1, 2011 at 3:29 am
I have 3 home loans for 3 properties, 2 rented out and one self occupied. I would like to make some amount as lump some prepayment (over and above EMIs). Should I distribute the amount between the three loans or is it preferable to apply it towards one loan and try to pay it off earlier ?
ps I tried paying the consultancy through paypal but it did not work
September 8, 2011 at 3:26 am
i am taking a home loan of rs 2000000 with my wife as co applicant.i am in higher income slab and my wife is in low income slab. i wish to mention 60:40 ratio of ownership for me and my wife in the sale deed for obtaining max. tax benefit by me. my question is should i force the bank to grant the loan of rs.2000000 in the same ratio i.e.12lac and 8 lacs to me and wife or the loan can be given jointly by the bank . which method should be adopted for better income tax rebate planning? kindly let me know.
September 14, 2011 at 5:44 am
Hi Krishna,
I already have a home loan in my name and am currently staying and taking tax benefit of the same.
WE are planning to buy a flat in my wife’s and i want to be the co-applicant for the same (property as well as for loan). So my questions are as follows:
a. Bank is ready to do upfront funding and so we can start our EMI immediately without waiting for possession (2 years). Will we be able to take tax advantage of principle + interest before the possession?
b. I am planning to let my current house, so if i include the rent as my income, will i be able to claim int and principle on my current loan and as well as for the flat that we are buying? My wife, who is also working will claim 50% of the principle and interest in the flat. Will this be okay?
Thanks in advance
October 4, 2011 at 12:52 am
Hi Krishna,
i was having many questions, but your post and your responses to all these questions cleared a lot of them.
personaly i want to thanks you for sharing these info.
i need one advice from you.
Me and my brother are planning to buy a flat in pune with a joint home loan of around 25L, can we get this much of loan and if then can you suggest us banks we should prefer for that.
my ctc 3.5L/A and my brother’s (indian)ctc is 5.5L/A.
one more thing…
currently my brother is in UK and will be back on june 2012. if we apply load before june2012 then will he get loan on the basis of indian payroll or onsite payroll?
thanks in advance
October 8, 2011 at 10:16 am
I want to apply for a home loan from SBI along with my brother as co-applicant. I heard that some banks does not give joint loans to Brothers. what about SBI ?
October 27, 2011 at 9:48 pm
will joint co-owner\co-borrower shall also repay there portion of EMI separately to claim IT exemption and the document to this effect should be furnished to the employer or not.. please reply
December 7, 2011 at 11:14 pm
Hello Sir,
What is the difference between co applicant & Co owner?
Is it necessary to registered the property with the co applicant?
If daughter is unmarried & she is applied for a Home Loan with her mother as a co applicant, but i just want to know that while registration, if she wants to register the property on her name only will it be possible.
Please reply to my query at the earliest.
Its really very urgent.
Regards
Arjun
December 9, 2011 at 12:23 am
HI,
I have taken a home loan along with my husband for which we are paying the EMI in share of 4:6 (Wife:Husband). If in coming years, i stop working and earning (not eligible for filing tax return) than whether my husband can claim the 100 % tax benifif being single person for repayment of remaining loan amount.
Thanks
December 18, 2011 at 1:51 am
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
December 18, 2011 at 1:53 am
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
December 25, 2011 at 2:41 am
Plz let me know, which banks allows brother as co-applicant (co-borrower) for home loan?
January 12, 2012 at 9:45 pm
hi !
me and my husband have availed of a joint home loan, also the house is on our joint name, the entire emi goes out from my account, i do not want to claim tax , can my husband claim the entire tax ?
Regards
Prachee
January 25, 2012 at 3:45 am
Hello Sir,
i am submitting documents for my tax declaration in my office, where the finance head is saying that i can claim only 75,000 of the interest paid and not 1.5 lac in the joint home loan which i have taken along with my husband
he total interest which we are paying in a year is 4,50,000 but i am able to claim on 75,000. i am not able to convince the person here.. i need a solid proof
please help me
Swetha
January 28, 2012 at 2:59 am
property is my wife name ,but where as house loan taken on this property with my salary.shall i get IT benfits from this loan like interst and princpal.pls clarify
January 29, 2012 at 3:18 am
My husband want to get home loan, but the plot is in his name and his brothers name can he get home loan
February 7, 2012 at 7:00 am
Hi plz let me know, which are the banks allow brothers to apply home loan jointly???
February 18, 2012 at 8:24 am
Can me and my Co-brothers take a Construction loan on a joint property?
February 18, 2012 at 8:28 am
Any wayout other than LAP to take loan on a joint property between Co-brothers ?
February 27, 2012 at 4:15 am
my husband has purchased a flat with my father-in-law as co-owner, but he has not given any money as decided earlier, we have to take a home loan. how can we remove his name from property, as flat is under construction.
April 2, 2012 at 4:43 am
Hi – I wanted to clarify a doubt regarding joint home loan. Kindly help !
I have a joint home loan along with my wife. If we fill a joint home loan declaration form, can both of us can claim 100% benefit each of Interest and Principal components ? (e.g if we pay 1.5 lakh for interest and 1 lakh for premium..our benefit is 1.5×2=3lakh for interest and 1×2=2 lakh for principal). (Ownership is 50% each and loan is 50% each but one of us makes higger contribution to EMI than the other)
Is this right or is there a trick here?
July 9, 2012 at 12:55 am
Hi. Two brothers have taken a joint home loan with 50% liability each. Both of them are co- owners too. But one of them is a student and the other is earning. So, payment for the student part is also made by the earning brother. What will be the tax implications in this case?
Thanks.
July 9, 2012 at 6:56 am
Hello Garima,
Who is paying the full EMI can take the tax exemption for whole amount.
There is no issues on it.
Thanks,
Krishna
July 9, 2012 at 9:20 pm
But if the principal amount exceeds rs. 100000, can the extra amount be claimed by the brother who is a student and not repaying anything?
July 9, 2012 at 9:35 pm
Hello Garima,
If he is student and not paying the loan, there is no way he can claim the tax exemption.
Thanks,
Krishna
July 9, 2012 at 9:41 pm
If your total outgo from your EMI is around 5L Rs. out of which 3L Rs. is meant for Interest & 2L Rs. for principal repayment, each of you are eligible for 1L Rs. principal repayment under section 80C & 1.5L Rs. each for interest benefit under section 24 of Income Tax Act 1962.
Subject to that both are paying the loans,from their income. Otherwise only who are paying the EMI would be eligible for the tax exemption.
Thanks,
Krishna
July 9, 2012 at 10:51 pm
Ok, thanks for explaining well with example..
July 9, 2012 at 11:56 pm
Welcome!!
July 10, 2012 at 4:48 am
Is there any limit for claiming exemption u/s 24B if the house is given on rent?
November 22, 2012 at 2:07 pm
hi i am planning to construct house in my fathers name plot and i want take loan as co applicant will i get tax benefit for the loan repayment and interest paid as i will pay full EMI for the loan.
regards
prabhu