Teamwork pays off in taxes
Buying in a metro often needs a joint home loan, usually with a spouse. The Old Regime rewards this: both co-borrowers can claim deductions on the same loan — if they are also co-owners.
The doubling, in numbers
Each co-owner can claim up to ₹2 lakh interest (Section 24b) and up to ₹1.5 lakh principal (Section 80C) (Source: Sections 24(b) and 80C, Income Tax Act).
| Benefit | Per person | Family (two co-owners) |
|---|---|---|
| Interest (24b) | ₹2,00,000 | ₹4,00,000 |
| Principal (80C) | ₹1,50,000 | ₹3,00,000 |
The golden rule: co-ownership is mandatory
You must be a co-owner of the property, not merely a co-borrower or guarantor. If the house is registered only in your spouse's name but you pay the EMI, you cannot claim anything.
How to split the claim
Deductions split by your ownership share:
- A 50:50 deed means a 50:50 split of principal and interest.
- If total interest is ₹3,00,000, each claims ₹1,50,000.
You can never claim more than the actual amount paid to the bank.
What you should do
- Confirm both names are on the property deed, not just the loan.
- Decide the ownership ratio and split principal and interest accordingly.
- Keep a clear record so both returns match.
Common mistake
Both spouses claiming the full interest. Claiming overlapping amounts beyond your share is a fast route to matching notices for both of you.
How LastMinute ITR helps
When spouses file separately, the split is easy to botch. LastMinute ITR helps you define your share of the joint loan inside your deductions and compares regimes so both of you claim correctly. Each of you files and e-verifies on incometax.gov.in.