Can husband and wife claim an income tax deduction for mortgage repayment?


My wife and I used a single joint home loan for our independent home. This house is jointly owned by both of us. Can we both benefit from an interest deduction up to ??2 lakh for interest and repayment of mortgage under section 24 of income tax separately? Can we both claim the interest deduction in different proportions?

-Uttam Rao

By Balwant Jain, Editor-in-Chief, ApnaPaisa

The tax advantages for the interest and the repayment of the principal of the mortgage can only be claimed if one is a co-owner and co-borrower managing the mortgage. In accordance with Article 26 of the Income Tax Act, in the case of property held in co-ownership, the co-owners will be considered as owners of their share in the property and will be taxed separately for this part. Since the property is jointly owned by you (the husband) and your wife, you both have the right to claim the benefit of the interest under section 24 as well as the repayment of the principal of the home loan under Section 80C provided both the home loan.

Regarding your question about the ratio in which the same can be claimed, the answer would depend on the ratio in which the two of you are handling the mortgage, which does not have to be in the same ratio for both of them. In the event that only one of the co-borrowers provides the mortgage service, he can fully claim the benefits of this repayment in his own tax return without another co-borrower being able to claim any benefit. Thus, the ratio, in which the tax benefits of the mortgage can be claimed, does not have to be the same as the respective share of the co-borrower in the ownership of the house.

(Views expressed by the expert.)

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