Who doesn’t desire to buy a home of their own? What keeps most away from doing so, however, are sky-high property prices. While many choose to take a home loan to fund the purchase of their dream house, some instead opt for a joint home loan.
Buying a house using a joint home loan allows the co-borrowers to share the financial responsibility of repaying the sum. With a joint home loan, your home loan eligibility to secure a larger amount is also enhanced. Moreover, it ensures that your home loan repayments don’t affect your daily expenses.
If you’ve taken out a joint home loan, you are also eligible to receive tax benefits. Here’s how you can claim them on your home loan.
Decide the ownership share
To optimise the tax benefit on home loans, it is ideal to decide the property ownership share of the co-borrowers. Once you agree upon the shares, the EMI can be divided according to the income brackets such that the larger section of the EMI can be handled by the one with a higher pay. This ensures that you can claim the highest possible yearly deduction on the home loan interest rate, under section 24 of the Income Tax Act. At the same time, it also enables you to improve your higher credit score. If you wish to apply for home loan, check out Tata Capital’s website to understand benefits, eligibility, and the process.
Additional Read:- Home Loan Tax Benefits Explaining Section 80EEA, 24 and 80C
Avail government schemes
In recent years, the Indian government has issued various schemes to increase the affordability of houses. Schemes such as PMAY (Pradhan Mantri Awas Yojana)have aided the purchasing power of individuals by offering subsidised home loan interest rates. If you meet the eligibility criteria for such schemes, you can avail some attractive concessions on your home loan repayments as well. In the Union Budget 2020-21, the Finance Minister announced that an additional deduction of Rs 1.5 lakhs for interest paid on a home loan can be availed under PMAY till March 2021.
Customise your EMIs
You can save more money by creating an EMI plan that addresses your repayment needs as well as other expenditure without causing any financial strain. The home loan EMI calculator helps you decide the perfect EMI plan for easy loan repayments. Customise your EMIs to suit the tenure period according to home loan interest rates. Since the tax benefit on home loan can be availed individually by the co-borrowers, a calculated repayment plan can work wonders. On a joint home loan, each borrower can claim up to Rs. 1.5 lakhs as principal deduction under the Income Tax Act, section 80C. This significantly reduces the strain of the debt on you.
It is necessary that the co-borrowers of a joint home loan must also be the co-owners of the property. Only after ensuring this can you avail maximum benefits through the aforementioned methods.
Additional Read:- Income Tax Benefits on Home Loan for the Year 2020
A joint home loan minimizes the financial burden that an individual borrower has to face and offers larger tax benefits to the joint owners. For quick home loans, Tata Capital offers you this perfect balance with smart home loan plans at affordable interest rates. Visit the website for more details.