Tips to save taxes on a joint home loan

 


Planning to take a joint home loan? Really a smart decision on your part! It’s definitely easier nowadays to secure a home loan and it can also help reduce the tax burden as well. Here are some tips to save taxes on a joint home loan from luxurykeralaflats.com, the prime portal to buy, sell, or rent flats in Kerala.

Claim Tax Benefits 

Under Section 80C and Section 24 of the Income Tax Act, both principal and interest payments on a home loan are eligible for tax deductions. Both partners can claim deductions for these expenses on a joint home loan effectively doubling the tax benefits.

Proportionally split the Loan 

The ownership share of each partner in the property to decide the tax benefits on a joint home loan. The loan amount can be split equally if both partners own the property equally. The loan should be split accordingly if one partner owns a larger share of the property to maximize tax benefits.

Opt for Joint Home Loan with a lower interest rate

The home loan interest rate significantly impacts tax benefits. Go for a loan with a lower interest rate to reduce the interest component of the EMI. This will reduce the tax burden and help you save money as well.

Register property in joint names

Ensure to register the property in both partners' names when purchasing a property with a joint home loan. This will help you claim the tax benefits of a joint home loan, as the property ownership decides the share of tax deductions.

Co-owners can take advantage of the Tax Benefits

Each co-owner can claim tax deductions for their share of the interest and principal repayments when two or more people co-own a property. As co-owners of a property, you and your partner can both claim deductions on your respective share of the loan.

Tax Benefits on Pre-construction Interest

For a property that is under construction if you are taking a joint home loan, you can claim tax benefits on the pre-construction interest payments. This can help you save a great amount of money on taxes.

Make timely repayments

It is vital to make timely repayments on your joint home loan as delayed payments can result in penalties and additional interest charges. This can in effect reduce the tax benefits of a joint home loan.

We can very well say, a joint home loan can be an excellent way to save on taxes and reduce the burden of home loan repayments. However, it is necessary to follow these tips to maximize the tax benefits and make informed financial decisions. You should always consult a tax professional or financial advisor before making any significant financial decisions. These are only a few tips to save taxes on a joint home loan.

As a premier real estate portal luxurykeralaflats.com makes it easy to get details on flats in Kerala, especially luxury apartments in Kochi. Contact us to know more.


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