A lot of tax payers find it increasingly difficult to not only meet the financial deadline for every year, by the end of 31st of march, but they also have to arrange various ways of making tax saving investments. In all the rush, they forget that, it is possible to claim tax breaks, without making any prior investments at all.

One of the investments is, of course, using tax breaks on join home loans. Not a lot of borrowers know how to maximize tax breaks, to get the highest advantage here. The system is really very simple. If a couple buys the same property jointly, they can also claim the deductions, individually. This will definitely help them in optimizing their tax savings.


Joint home loans come with a lot of benefits. One of them is that, it provides tax rebate on taxable income of both the partners. It has been mentioned under Secton 80C and Section 24 that both individuals can make a claim for tax rebate on the principal and the interest, that is then repaid by them.

Co-ownership Share:

Also, to optimize your tax breaks, you need to work out the issue of ownership share. Lenders will usually insist that co-owners be the co-borrowers in a housing loan, but it is very important to make sure that co-borrowers be also co-owners, so that they can both be eligible to avail the different tax benefits. Thus, co-ownership share is important because it will help you to determine your rate of tax deductions.

Joint Home Loan’s Benefits in case of One Earning Member Only:

This whole situation of saving tax with joint home loans becomes really easy when both the members are earning in the household. However, if one partner is earning but the other one is not, the problem can be easily diverted with a little bit of planning. All one has to do is, ensure that the earning partner enters into a legal agreement with the non-earning member that would state that the entire home loan is being borne by the earning member of the family. The earning member can then have an access to all the advantages of tax exemptions that are available on the home loan. The agreement is usually signed on Rs. 100 stamp paper. The lender or the bank has to issue a statement of payment to both, the borrower as well as the co-borrower, which they have to present in order to claim tax benefits.

What are the Restrictions Associated with Joint Home Loans?

However, the joint home loan application comes with several restrictions. You cannot get a joint home loan sanctioned by partnering your sisters or friends. Also, unmarried couples cannot apply to benefit from this method.

Using the joint home loan is certainly beneficial overall, and with a little bit of preparation, you can take advantage of joint home loans without much ado.