Quite often it becomes a practical option to avail a joint home loan so as to increase the loan amount and get tax benefits too.
In case a couple plans to buy a home by taking a joint home loan then there are added advantages that they can avail from the loan. While a joint loan permits the total loan amount to be higher by combining the repaying power of the both the applicants, it also provides tax rebate on taxable income of both. Both the individuals can now claim tax rebate on the principal (Under Section 80C) and the interest (Under Section 24) that is repaid by them.
Here are some of the direct implications of a joint home loan:
As is evident from the above implications the tax benefits can be doubled by availing a joint home loan when buying house. There is no upper limit for tax exemption on the interest amount paid except that each co-borrower can claim rebate of up to Rs 150,000 only in any financial years. In certain cases where there are more number of co-borrowers such as other family members in a home loan the actual tax rebate availed towards payment of the interest element can be further increased.
There are certain restrictions on joint loan applications such as sisters, friends and unmarried couples cannot apply or benefit from this scheme. A maximum of 4 to 6 joint applicants are eligible for tax rebate under this clause.
Thus, availing a joint home loan is certainly a lucrative financial option to buy a house as well as save maximum possible on income taxes.
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