Banking: Prashant Joshi

I have taken a joint home loan with my wife of Rs 50 lakh. We are going to jointly own that house. Our total loan outgo towards this loan is Rs 2 lakh. How should we claim tax deductions?

All the deductions that pertain to home loans are assessee-specific and not property-specific. So, where a property has been purchased jointly by taking a joint home loan, each of the persons repaying would be able to claim a deduction separately for the amount repaid by him/her. Repayment of the principal amount can be claimed as a deduction under section 80C of the Income tax Act (IT Act) up to Rs 1 lakh. Tax deduction for interest on a housing loan for a self-occupied property is allowable up to Rs 1.5 lakh under Section 24 of the IT Act. Additional deduction of Rs 1 lakh has been provided to first-time home buyers under section 80EE of the IT Act, with certain conditions.

Your wife and you can separately claim tax deduction for principal and interest payments only if both of you are contributing towards the EMI payment. You can consult a tax advisor for this requirement, if needed.

I am relocating to Delhi from Mumbai. Even if most of my banking transactions are online, will I need to inform my bank about my relocation? Would I need to submit any documents to operate my account from Delhi as well?

It is important that your contact details, including communication address, are always updated in your bank account. This will ensure you receive regular updates on your account, including account statement, transaction alerts and so on. For making these changes, you will have to give an address change request along with a valid proof to your bank; you can find the list of acceptable documents on the website of your bank. Once you have relocated, I would urge you to visit the branch most conveniently located for you and give change request, with the required documents.

If I buy a group health policy (of Company X) sold by my bank, will the premium payable on that policy be similar if had to buy the same policy directly?

If it's a large group, the group plan would probably be cheaper if the benefits and everything else are the same. However, direct insurance with an insurance company might be beneficial to you if you are young and healthy and willing to accept a higher deductible from the claim, with less coverage at a lower premium.

Prashant Joshi, MD and head, private & business clients (India), Deutsche Bank, answers your questions
The views expressed are the expert's own. Send your queries to yourmoney@bsmail.in