Rajeev Mardia
And Associates


When purchasing a home, one of the most common ways to finance it is through a joint home loan. A joint home loan is when two or more individual borrow money from financial institution to purchase a property. It is tax benefits  under section 80C,80EE,and  section 24(b) of the Income Tax Act.

Tax  Benefits  under section 80C

  • Section 80C of the Income Tax Act allows for a deduction of up to Rs.1.5 lakh from the taxable income of an individual. in case of a join home loan, both  co-borrowers can claim deductions separately up to the limit of Rs.1.5 lakh each.

Furthermore, According  to income tax rules, this deduction is only valid for completely  developed properties ,and must be self- occupied, You must check whether qualify for this benefit before applying.

Deductions per section 24(b) of the Income Tax Act

  • Section 24(b) of the Income Tax Act allows for a deduction of up to Rs.2 lakh on the interest paid for “home loan”(self –occupied) property.
  • Each co-borrower can claim this deduction in join home loan.
  • This means both co-borrowers can claim  deductions on the interest paid on the loan,       deduction  maximum limit up to Rs.2 lakh for each year.
  • The tax deduction under section 24(b) can claimed by both borrowers in the ratio of their in the loan
  • If the property is let- out, you can claim the actual value without any upper limit.

Tax Saving Under Section 80EE

The Income Tax act provides an additional deduction of up to Rs.50,000 on the interest  paid towards a home loan.

Criteria :-

  • The Taxpayers should be an individual.
  • Tax benefits under section 80EE can only be claimed by first-time home buyer.
  • The loan amount should not exceed Rs.35 lakh.
  • The value of the residential property not exceed Rs.50 lakh.

*These deductions are applicable only in old tax regime not for new regime with effect from 1st April 2023.*