Buying a home is an important financial goal in everyone life. Today, with most financial institutions offering attractive interest rates and low processing fees on home loans and the Income tax benefits available on the said loans, more and more people are opting for home loans to realize their dream of buying and owning a home.
Why Home Loan
With changing times, men are not the only earning members in the family anymore. The concept of co-earning and mutually taking up household responsibilities has also gained momentum in India. This has enabled most people to get a joint loan with their spouse and co-own their home, thus also sharing the responsibility of realizing a dream.
However, this is not the only aspect of a joint home loan. Apart from sharing responsibilities and expenses, people also tend to enjoy double tax benefits from a joint home loan.
Before we get into the details of the benefits you enjoy upon opting for a joint home loan, let us discuss the eligibility criteria.
Eligibility Criteria to avail tax benefits on a joint home loan
Now, let discuss the tax benefits of co-owning a house.
Note that the maximum tax benefit under Section 80C of the Income Tax Act, 1961 is limited to Rs. 1.5 lac. Hence, one has to plan accordingly in order to avail the maximum benefits when planning to co-own a house with a joint home loan.
Written by Mayank Lal
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