Maximise Tax Savings with Home Loan Benefits for Joint Owners

Owning a dream home is a cherished goal for many, and joint homeownership can make this dream more achievable. But did you know that it also opens doors to significant tax savings? With a home loan, you not only get the financial support to purchase your home but also access unmatched tax benefits for joint homeowners.

Ready to discover how? Let us break down the essential details of home loan tax benefits for joint owners.

Understanding home loan tax benefits for joint owners

When two or more individuals jointly own a property and share the responsibility of repaying a home loan, they can independently claim tax deductions. Here is how:

1. Deduction on principal repayment (Section 80C): Each co-owner can claim a deduction of up to Rs. 1.5 lakh annually on the principal repayment of the home loan, provided they are joint borrowers and the property is self-occupied or rented.
2. Deduction on interest payment (Section 24b): Under this section, each borrower is eligible for a deduction of up to Rs. 2 lakh per year on the interest paid towards the loan. For rented properties, there is no upper limit on interest deduction.
3. Stamp duty and registration charges: Stamp duty and registration charges are also deductible under Section 80C within the overall limit of Rs. 1.5 lakh in the year they are paid.

By combining these benefits, joint owners can effectively double their tax-saving potential.

Calculating your tax savings can be tricky, but tools like the home loan tax benefits calculator simplify the process. Enter details such as your annual income, interest paid, and principal paid, and the calculator will estimate your income tax payable before and after a home loan.

Eligibility criteria for availing tax benefits

To claim these home loan tax benefits, joint owners must meet specific conditions:

1. Joint ownership: The property must be registered in the names of all individuals claiming deductions.
2. Co-borrowers of the loan: Only those who are co-borrowers of the home loan are eligible for tax benefits.
3. Loan utilisation: The loan amount must be utilised for purchasing, constructing, or renovating the property.
4. Repayment contribution: Tax benefits are proportional to the share of repayment made by each borrower. Maintain clear documentation to avoid disputes during tax filing.

Smart tips for maximising your tax benefits

1. Split repayment proportionately: Decide on a repayment split that maximises tax deductions for all co-borrowers.
2. Maintain records: Keep loan statements, repayment receipts, and ownership documents handy for tax filing.
3. Utilise unused deductions: If one co-owner's taxable income is lower, adjust the repayment share to ensure full utilisation of deductions.
4. Monitor tax laws: Tax rules can change. Stay updated to make the most of your benefits.

Explore Bajaj Housing Finance Home Loan

Are you looking to purchase a home with a co-owner and seeking financial support? Bajaj Housing Finance Home Loan is the perfect solution to help you both achieve your dream home while maximising tax benefits.

Owning a home is not just about having a place to live—it’s about securing your future with a smart financial move. With Bajaj Housing Finance Home Loan, you not only get the necessary funds to purchase your property but also access a world of financial benefits. From attractive interest rates to easy eligibility criteria, Bajaj Housing Finance ensures that your journey to homeownership is smooth and rewarding.

Here are a few reasons to opt for Bajaj Housing Finance Home Loan:

1. Low-interest rates: Enjoy interest rates starting at just 8.50%* p.a., allowing you to pay EMIs as low as Rs. 759 per lakh*.
2. High loan amounts: Turn your dream of owning a home into reality with loan amounts as high as Rs. 15 crore*.
3. Long repayment tenures: Repay your loan comfortably with a tenure of up to 32 years*, ensuring manageable EMIs.
4. Quick approvals: Say goodbye to long waiting periods with a quick and easy application process.
5. Balance transfer facility: Transfer your home loan with ease and avail a top-up loan of up to Rs. 1 crore* or more to meet additional financial needs.

Whether you are buying your first home or upgrading to a new one, Bajaj Housing Finance Home Loan ensures you achieve your goals without financial stress. Apply now to start your journey toward owning the home you have always envisioned.

Note to the reader: This article is part of Hindustan Times's paid consumer connect initiative and is independently created by the brand. Hindustan Times assumes no editorial responsibility for the content, including its accuracy, completeness, or any errors or omissions. Readers are advised to verify all information independently.