Income tax benefit on home loan for co-applicantThe best part of a home loan is the amount of tax rebate which one gets by virtue of taking a home loan. This rebate is being given as a single home loan propels more than 165 industries i.e. it gives a boost to growth.
Now query comes that how a loan taken by co-borrowers or coapplicant for Property is going to get a tax rebate. The below explanation will clear all your doubts about the same as money saved is money earned.
In case a home loan is taken jointly which may be to enhance the home loan limit or as a matter of fact it can be for any other purpose or may be a requirement of loan issuing agency than income tax benefit on the home loan is applicable in proportion to the ownership structure.
For example if the husband and wife owns house in 60:40 ratio then benefits of the interest under Section 24 b as well as the principle payments under Section 80C are also shared in the same proportion.The interest deduction and repayment of principle is also to be separately considered.
Thus in our opinion only loan which should be taken by the people is home loan as it drastically brings down the rate of interest on loan by virtue of tax break received. Please click on below related posts to get to know more about home loan and tax breaks available with it.
Read the link income tax rebate sec 24 comments by clicking the link to get a better perspective that how you can gain maximum by using a coborrower.