<b>Taxation:</b> Kuldip Kumar

Kuldip Kumar, partner and leader (personal tax), PwC India, answers your questions

Kuldip Kumar
Last Updated at December 29, 2016 01:29 IST

What is the maximum income tax exemption available in a joint home loan? Will it be split equally between the joint borrowers?

The Income Tax Act, provides deduction in relation to interest as well repayment of principal amount of loan to the owners of the property. Under Section 24 of the Act, interest on a home loan taken for the purpose of purchase or construction of house property is allowed as deduction without any limit in case of let out property. However, interest deduction is restricted to Rs 2 lakh in a self-occupied property but the said property should have been acquired or constructed within five years from the end of the financial year in which the loan is taken. Else, deduction will get restricted to Rs 30,000. Further, any principal repayment of housing loan is eligible for deduction under section 80C within the overall limit of Rs 1.5 lakh. First-time home buyers are also eligible for an additional deduction under Section 80EE up to maximum of Rs 50,000 in respect of interest on loan taken for purchase of a residential house property, subject to certain conditions.

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