There are joint home loan tax exemptions that you must be aware of. In case of joint home loan tax benefits, they are divided between the co-applicants. More than one person can have the tax benefits in case the annual repayment can be split. The ownership ratio of the joint home loan is used for determining the tax exemption proportion. Every applicant can get the maximum tax deduction on the principal amount up to Rs. 1.5 lakh and Rs. 2 lakh on the interest repayment annually under Sections 80C and 24 respectively.
The ownership of both applicants should be clearly stated in the home loan documents along with the percentage of ownership. Along with negotiating for lower home loan interest rates, one should plan carefully in order to maximize tax benefits for both borrowers.