Section 80C states that taxpayers can avail deductions of up to Rs.1.5 lakh on their taxable earnings by investing in different schemes. The exemption applies to home loans as well. Both borrowers and HUFs can claim home loan tax benefits under the same.
However, if home loan borrowers are looking for ways to maximize their tax benefits even further, they should co-apply for a home loan as joint-owners because of the following reasons.
Tax benefits for co-owners under Section 80C
Under the said section, each of the co-owners is entitled to claim up to Rs.1.5 lakh as tax deductions. For instance, if two co-owners claim home loan tax benefits jointly, they would be able to save up to Rs.3 lakh from their taxable earnings. It directly facilitates more savings and makes the process of home loan repayment easier.
In the event individuals tend to hesitate to apply for a joint home loan, they should take a look at the galore of benefits extended under the same. It must be noted that to avail this tax benefit, co-applicants must also be the co-owners of a house.
Features and benefits of a joint home loan
- High loan value: Borrowers can avail a substantially higher credit value by applying for such a loan facility.
- Ease of repayment: This loan option comes with a flexible tenor that offers ample scope to repay the loan conveniently. Further, the loan burden is distributed between the two borrowers, making the repaying process smooth and fast.
- Quick disbursal: Post verification, the home loan can be disbursed within 2-3 working days.
- Exclusive benefits: Most HFCs extend exclusive benefits like lower interest rates for women co-owners, top-up loans, and foreclosure or part payment facilities.
Consequently, borrowers should make it a point to consider factors like home loan tax benefits, features, and benefits of joint housing finance before applying.
