Income Tax Exemption on Housing Loan

Tax rebate on home loans means that you can benefit and save significant part of your tax liability if you have taken a home loan.

It works in following manner. Post updated on 10th July 2014

Interest paid on the home loan

In the budget presented on 10th July 2014 the interest limit on housing loan has been increased from Rs 1.5 L to 2 L  for claiming income tax exemption. 

As per Sec 24(b) of the Income Tax Act, 1961 in India a deduction up to Rs. 2,00,000 can be claimed as tax exemption on housing loan. This deduction is claimed towards the total interest that we pay on the home loan towards purchase or construction of house property while computing the income from house property.

The interest payable before you acquire home or start the construction work would be deductible in five equal annual installments commencing from the year in which the house has been acquired or constructed.

In case of self- occupied property, housing loan tax benefit is allowed only for one such self – occupied property. The interest towards home loan taken for purchase, construction, repairs, renewal or reconstruction of house property is eligible for deduction under section 24(b).

Principal repayment of the home loan

As per the newly introduced Sections 80C read with section 80CCE of the Income Tax Act, 1961 the principal repayment up to Rs. 1,50,000 on your home loan will be allowed as a deduction from the gross total income subject to fulfillment of prescribed conditions.

Let us consider a hypothetical example.

As per Finance ministers budget speech on 10th July 2014

Your taxable Income: Rs 8,50,000

Principal repayment for the year 2014-15 : Rs 1,10,000 and Interest payable for the year: Rs 2,60,000

Total Deductions allowed: Rs 3,10,000 (Rs 2,00,000 towards interest payable & Rs 1,10,000 for principal repayment of the loan under revised section 80C)

Thus, your taxable income will reduce to Rs 5,40,000 (Rs 8,50,000 – Rs 3,10,000)

143 comments to Income Tax Exemption on Housing Loan

  • hadfji

    I have taken a Home loan jointly with me and my wife it is self occupied property.My wife is prime applicant and I am co-applicant. .shall I get the benefit of interest deduction and principal deduction from inocme tax

    • Financial Advisor

      If property is also joint then you can take this benefit. If the property is in your wife’s name then you cannot claim deduction even if you are paying home loan instalments

  • Reghu R

    I and my wife are state govt employees We purchased a house and registered it on her name ( wife ‘s Name ) The Bank loan taken as Wife – the Borrower and I as the Co- applicant. Can we both share the Principal amount and interest for income tax exemption?

  • Rajesh Daiya

    I have obtained a Home Loan during 2005 for purchasing a Ready Build House. Now I want to apply for second Home Loan for alteration/addition in the same House. Whether I can get the rebeat for repayment/interest under 80D for second Home Loan too.

  • Charles


    I’ve taken a home loan for 27.5 lacs, I’ve rented out my apt for 6k per month. The total interest in my home loan is 2.92 lacs and am residing for rent for 8.5 k per month. Please let me know if I can claim full interest as well as claim hra for the rent I pay. I’ll also want to show rental income.

    Please guide

    Regards, Charles

    • Financial Advisor

      You can claim HRA and tax rebate on home loan only if your home and current residence is in different cities. You can show rental income also

  • Anthony

    i currently have a home registered in my name. to take tax benefit and for investment, im looking to buy another house in mine and wife’s name. can i claim income tax benefit for upto 2 lacs in 80C (principle amt) and 2.5 lacs (interest on home loan) under section 24. Also if i give it on rent with rent being payable to my wife’s name (who is home maker) will it help as her income will not be under any tax bracket. Please suggest

  • Patil

    Dear Madam/Sir, I wish to avail a home loan from SBI (under Her Ghar scheme)for purchase of a flat. I want to be the joint second borrower with my wife who is a housewife. How do i explain her capability to repay or her sources of funds to the bank &/or IT dept as she is not earning anything? Can my income be shown as the source of funds for repayment? Who will get the tax benefits?

    • Financial Advisor

      Your income can be shown as source of funds for home loan payment. You will get the tax benefit as you will be paying the EMI and you are also the joint owner of the house.

  • Aarti

    My builder completed my flat by 27th March 2014, for which I have a housing loan, from SBI. My builder has applied for the occupancy certificate from the corporation, but it is unlikely to be received before 31 March 2014. Can I get the IT benefit of the interest paid portion of the loan for the FY ending March 2014? (EMIs are being paid since January 2014. Also paid the Pre EMI interest in the financial year 2013-2014)

  • venkat

    Dear sir,
    Recently i took a home loan for 10 lacs for 25 years. Monthly EMI 9264.currently my taxable income is 1 lac. If i will pay entire tenure of my loan it comes 27.8 lacs. 17.8 lacs extra, so i am confusing is it possible save the tax benefit equal to my extra loan payment(17.8lacs) or better to close the loan as soon as possible by partial payment in principal amount. please give a good solution.

    • Financial Advisor

      If you already have the money then why are you taking housing loan ? You will be getting IT rebate on the interest amount paid.

  • JOHN

    Dear Sir,

    I have had a housing loan for my house from 2004 where I am staying now which I have closed sometime two years back making repayment. After that I have availed HDFC Housing Loan for purchasing another house which I have rented out for sometime. My question is whether I can avail the benefit of current Homeloan. Awaiting a clear reply,

    • Financial Advisor

      Yes you can avail the benefit in current home loan. You will have to mention rental income also in this case in your IT return.

  • lavanya

    my mother is home maker my father wants to purchase a house on my mother’s name whether he can claim for tax benefit or not if he is a central government employee

    • Financial Advisor

      He will not be able to do so as the house will not be in his name. Best option will be to purchase house in joint name of mother and father, then he will be able to claim tax rebate

  • Satheesh


    We took joint home loan (my father and myself) and property is in my father’s name. Whether I am eligible for tax exemption for this home loan repayment? Anyone please help.

  • Yuvaraj

    Hello Sir,

    I have current home loan ongoing and I am planning to buy second home.
    I am sole owner of 1st Home and planning to add my Mother as Joint owner for second home.
    My Queries –
    1. If I repaid entire Loan Amount for 1st Home, whether second home will be considered as 2nd home (for benefit of tax exemption on “Interest” paid)?
    2. If I continued my 1st Home Loan and for 2nd home, if I am going to be pay entire EMI, whether I can avail full benefit of Tax Exemption for second Home as well?
    3. In Above case, if we show the Rental income from Second home is being paid to my Mother (as she is Co-owner of 2nd Home), whether I have to pay wealth tax?

    Thanks and Regards,

  • gopinadh

    Dear Sir,
    My father took a loan with my surety. However the entire EMI is paid by me. What happen is the interest which I paid to bank for financial year 2012~2013 is not filed for Tax exception. Can I add that amount with financial year 2013~2014 for Tax Exception? Please advise me.

  • Sheshadri


    I rented my 1st house for 8k/pm having no loan. I reside in my 2nd house which is having 29L bank loan. My salaried income is 12L/pa. Can I claim tax benefit on interest on my 2nd home loan adding retals of 1st home to gross income. (ie is it neccessary to tie up rental income and loan interest to the same house ?)

    pl clarify and help me..

  • Kheyati

    Sir, I have availed a housing loan with my mother as the co applicant in October 2013. For the period October 2013-March 2014 my mother had been contributing 50% of the EMI and so according she had claimed 50% of the total interest paid and the pricipal amount.

    However, Due to her ill health sh will not be able to contribute towards the EMI for 2014-15.

    So since I will be paying the entire EMI can I claim 100% of the Interest and Principal amount. If yes, then will there be no negativity implication as for 2013-14 my mother claimed 50% of interest and principal but for 2014-15 she will not be able to claim.

  • Lakshmi

    Hello Sir,
    We have taken homeloan as myself is the first applicant and my husband as a co borrower. I am paying the EMI and availing tax benifit for EMI’s(both principal and interest).
    My Husband is having another homeloan on his name for the second house as solo borrower and he is getting tax benefit for EMI’s. But we want to clear some of the loan amount(Principle) for first house apart from EMI’s. So, Can you please suggest me, whether my husband can avail that additional principal amount as a tax exemption as he is a co-borrower….

    1. If we can claim, what is the maximum principal amount he can show on his name for the second house?

  • Anand

    Dear Sir,
    I’m paying EMI for a house loan since November 2009. Amount of interest paid was more than 1.5 lac each year. From this year onward, amount of interest paid will be less than 1.5 lac as the principal has reduced. Please advise if I can use the interest payment made in excess of 1.5 lac in previous years & add that to this year interest payment to make it 1.5 lac? Thanks for replying to the query.

  • abhishek

    What would be exemption under housing loan for this issue

    a person has availed housing loan of 10 lacs @ 10% interest rate.
    In a financial year he repay total 200000 for interest & housing repayment.
    in that financial year his interest on housing loan is 150000.

    than his exemption would be what??
    150000 for interest & 50000 for repayment
    or 150000 for interest & 100000 for repayments

    • Financial Advisor

      Exemption will be on actual amount paid so 150000 for interest & 50000 for repayment of principle

      • Dev

        Hi Sir.

        I have a housing loan from LIC . The loan is on my and my fathers Name, However the entire EMI is paid by me.Can I get full Tax exemption on the Housing loan as my father is retired and he does not claim the tax benefit and neither he is paying the EMI. please advise sir.


    I am having one house for which I am paying EMI of Rs. 8122/- ( Since 2001 ) As the space is not sufficient I have taken a house on rent . I am paying monthly rent of Rs. 15800/- .In the mean time I have booked a bigger house under construction and started paying EMI of Rs. 57000/-. The new house is expected to handover somewhere in current year in Nov to Dec’14. Once it happens I will shift from rented house.Till last year I was claiming only Rent exemption .

    Now my question is that in current financial year can I claim the following :

    a. House rent benefit up to Nov- Dec’14 ( Till I moved to new house )
    b. Pre-EMI of new House ( 20% of interest paid up to Mar’14 )
    c. Full Year Interest & Principle for the new house of EMI : 57000/- ( Period Apr’14 to Mar’15 )

    In case I show my current house of EMI Rs. 8122 as self occupied and then can I claim the complete Interest & Principle of the new house for deduction ?? Is it necessary to show some notional income from the new house even if i do not rented it to any one.

    • Financial Advisor

      You are not claiming any exemption for the first house, you can claim full exemptions on the second house plus house rent benefit till Dec 14 and will have to show first house given on rent. If you show your first house as self occupied you will not be able to claim house rent benefit then.

  • niraj

    I am a co-applicant and my father is the first applicant in the property and i am availing housing loan from bank as a first applicant and father as a co borrower. However, the total EMI amount is paid by me. Can i claim tax rebate from income tax department.
    What is the total income tax exemption that I can avail of (if possible kindly state the section & clause of Income tax rules) and what are the formalities to be fullfilled for the same.

    • Financial Advisor

      Yes you can take full exemptions of the EMI paid by you. Clauses and rebate limits are mentioned above. You have to claim this in your income tax return or submit the interest and Principle certificate from bank to your employer and he will deduct TDS accordingly

  • balavenkatesanr

    I have availed housing loan. Total repayment for the loan amount for the current financial year is Rs 2,18,000. Out of which Interest part is Rs 1,70,000/- and Rs 48,000/- for the Principal part. Since the limit for interest part is only Rs 1,50,000/- in 24C. Can i claim the remaining 20,000/- from interest part in 80C deduction along with pricipal amount of Rs 48,000/-. Kindly clarify


    My house is on my wife’s name & I am paying the EMI to SBI through my salary. As explained by you earlier, I can not get the IT exemption as the house is not on my name.

    Now, can I get the property transfered to my name for the sake of IT benefit and if yes, how to go ahead.

    • Financial Advisor

      Yes you can get the property transferred to your name for claiming It benefits. Contact your bank and they will guide you further on this as the property is already mortgaged with the bank.

  • suprotim sen

    Can I avail a home loan in which I am a co-applicant and my wife is the first applicant. However, the total EMI amount is paid by me.
    What is the total income tax exemption that I can avail of (if possible kindly state the section & clause of Income tax rules) and what are the formalities to be fullfilled for the same.

    • Financial Advisor

      Yes you can avail the home loan and claim up-to Rs 1,50,000 as exemption on interest paid. You need to submit the interest and principle paid certificate from the bank to your employer for this purpose. Principle can be claimed separately in section 80 Limit of Rs 1,00,000.

  • Roop kumar

    I am a retired govt.officer. I have booked a flat in Delhi. I have taken bank loan for this purpose & paying EMI regularly and takes tax benefits. Now almost full payments have been made and I want to register this flat in the name of my elder son(doing Private Job). Can I do so under I.T.Act’1961?

  • vaidys

    I have taken loan jointly with my wife as co-owner & rented the property and i am staying in another rent house. My wife is housewife, so can I claim 100% tax exemption on interst on housing loan & while sharing rental income with my wife.


    Dear sir,

    I am planning to buy a house and register it on my wife name ( not joint, completely on wife name ),she is house wife, but i would like to take loan and pay 100% EMI from my salary account. can i claim for tax benifit on home loan ?.

  • Charu


    We bought apartment under construction stage and Registration happened for the same property in Nov 2013.Possession of our flat will be in Nov 2014.

    1. Can I claim tax rebate on Stampduty, Registration charges in FY 2013-14?
    2. As a part of the home loan, we paid to the bank from our bank loan for Insurance (Person Insurance). Can I claim that insurance in tax rebate FY 2013-14.

    Advance Thank You for your replies.

  • bipin kumar

    sir i am central govt employee. my wife is a house wife. i bought a flat in the name of my wife. bank given the loan on the basis of my salary as a co applicant of home loan. my wife is fully dependt on me. can i take benefit of home loan interest in income tax because i given emi every month.

  • Mahesh

    I own a flat in joint name with wife. loan is also on joint name. She is housewife and I am paying entire emi through my bank account. Paid interest approx 1.9 lacs. Can I claim full full amount for Income Tax rebate?

  • D H Venkatesh

    Dear Sir
    My wife got plot in her name from her parents I am a salaried person working in government sector I am going to apply for sbi home loan for construction of house my question is whether I will get income tax exemption on above said home loan on plot of my wife’s name

  • Ajit Kumar Nath

    I stayed at rented house from April to July 2013 and took a home loan from the month of September 2013. The EMI started from the month of September, 2013. Can I get benefit of rented receipt from the month of April to July, 2013 and benefit of loan interest from the month of September 2013 to March 2014. Could you give us a hypothetical example.

  • Nitash

    Hello Sir,

    I have taken a home loan for construction with my mother jointly. Land is also owned by us together. Now I’m paying the loan EMIs alone via cash payments. Can I take the total 100 % benefit of tax benefit for principle and interest amount as my mother doesn’t need any tax benefit.

    And do I need to get any affidavit letter from her for the same (NOC letter). Please suggest


    My brother having 1st housing loan of ICICI bank home loans and taking tax benefit. Now my brother had taken joint home loan with me from GIC. Now tell me sir what is rule of taking tax benefit for my brother and for me.

  • I have purchased property in the name of my wife through bank. I am eligible to take deduction. Please clarify.


  • A R Pawar

    I currently have housing loan on property and want to renovate the same house for which I took top up loan on same house, Can I claim the top loan interest amount for tax exemption?

  • Ganesan

    I am a central govt. employee. My wife is having a house site registered in her name. My wife is housewife and having no source of income. I want to construct a house in this site by availing home loan, my self and my wife will be co-borrowers of this loan.

    Can I get full income tax rebate on this house loan. To get full income tax benefits for this loan what are the things I need to follow pl. clarify.

  • Mahendran

    I just used the Bank Bazzar EMI calculator for a loan of 25 lakhs and interest rate of 9.95(SBI bank interest rate, which is the least). As per the calculator the interest paid in the first year is 2,46,886 which is less than the said exemption amount. I do not understand how the amt of 2.5 lakh exemption is arrived. can someone explain. 🙂

  • Hemal

    Under IT rules for 2013-14, can I avail 2nd home property on home loan meeting below criteria –
    > This home is not my prime occupancy but for rental / investment purpose only.
    > It will be same city as I am resident of

    Am i entitiled for Rs 1 Lakh on principal & Rs 2.5 Lakh on interest exemption? If not, pls clarify.

  • Rut

    I own a house in CityA jointly with my wife for which we are already claiming tax exemptions on home loan repayment. I have been living in CityB on rent. Now I have just purchased a house in CityB again jointly with my wife on loan. But I plan to continue staying on rent in CityB since the house I bought in CityB is small for us and is far from my office and let this new house on rent. In this situation, I would like to understand the following:

    1) Can we claim tax benefits on BOTH loan payouts (1 lakh in 80C and 1.5 lakh in 24b for both me and wife)? i.e. Total 5 lakhs of deductions.

    2) I have two rental incomes now. One in CityA and another in CityB. Will they both be added in our total income in 50:50 ratio? and Will standard deductions be applicable on both these rental incomes separately?

    3) Also, with regard to above question, since we (I and spouse) are living on rent in CityB, will we still be eligible for HRA exemptions?

  • I took home loan and house registration was on my father name.can I get tax exemption? and all the EMI are paid by me

  • Jitendra

    I have a property on my name we are constructing house on that me and my wife are working and planning to take home loan for construction can my claim full tax benifit as i have a seperate home loan ,can you pl advise how the tax exemption can be claimed

  • GP Sharma

    I am a government employee. I have purchased a house property on my wife’s name. She is house wife but house loan is taken jointly by both of us (husband and wife). Can I claim exemption of interest paid ?

  • Manoj

    I have purchased one apartment and will be jointly registered by me & my wife. To purchase we have taken loan from bank where my wife is working to utilize staff facility. So in the Loan she is the main borrower and I am the co applicant for additional amount. I will be paying part of EMI.

    Can I claim or get exemption for principal/interest paid for the amount.

  • Sudarshan

    I had taken a loan of 9.00 lacks in 2011 for extension of our house, but the property is in my father’s name and he is not working(retired), no sources of income is there for him. I am soley paying the EMI as I am a Co Applicant of loan. Can I avail the TAX benifit for this finacial year??


    Dear Sir/Mam,
    I am applying for a joint loan with my wife for our first house.
    The total loan amount is 40 lacs divided equally between us two.
    That means each will have a loan of 20 lacs only.
    The house will be in joint ownership.
    As per the declaration in the budget home loans below Rs 25 lakh are eligible for exemption of additional Rs 1 lakh. As per that will both of us be eligible for exemption of Rs 2,50,000/- per year for the home loan interest.
    Please clarify..

  • Vinay

    I took Home Loan for 20 Lakh in Yr 2007. Appx anual interest is 1.7 Lakhs. Now from FY 2013-14, will I get exemption on 1.7 Lakhs? Or I continue geting 1.5 L exemption since my loan is old.

  • yatin jaisingh

    as per the union budget the the exemption for home loan has been increased to 2.5 lakhs for loans upto 25 lakhs. in case of a joint loan of 40 lakhs where both are husband and wife are equal co borrowers, will each get an exemption of 2.5 lakhs as each has borrowed aloan if less than 25 lakhs for their 1st house??


    My home loan is sanctioned & I have taken 2 disbursements. Pre EMI is started Full EMI will be started in 2013-14.
    Pls confirm whether I`ll be eligible for additional 100000Rs deduction.

  • ranjeet

    I am a salaried person and have taken a home loan on my name. i am paying 70000 as a interest of home loan. i am staying on a rented house , can i avail HRA & HOME loan interest part exception together.

  • Supriya Puranik


    I have a joint home lone along with my husband and the loan amount is of 37 lakh.
    The contribution is 50%-50% shared among both of us.

    In a way, I have taken a loan of Rs 18,50000/- which is below Rs 25 lakh. Same is the case with my husband. As per the declaration in the budget home loans below Rs 25 lakh are eligible for exemption of additional Rs 1 lakh. As per that will both of us be eligible for exemption of Rs 2,50,000/- per year for the home loan interest paid in the financial year.

    Please clarify my doubts.

    Thanks & Regards,

    • Financial Advisor

      This is valid for only new loans taken in the financial year 2013-2014. As you have already taken the loan, you will not be eligible for this.

      • Naveen Jain

        As per union budget 2013-14, there is an additional deduction of Rs. 1,00,000 for first time home buyers who taken loan from 1 April 2013 to 31 March 2014.

        I am first time home buyer and property is under Rs. 40 lakhs. However, this loan was acquired in year 2010. If I transfer my home loan to a new bank this year, will I be eligible?

        • Sanjeev Kumar

          Naveen or anyone else got answer on this? If we transfer an exising home loan this year to new lender bank. In that case will I be able to take the 1,00,000 additional tax benefit on home loan interest as per the new rule.

  • Neel Iyer

    What about those houses which are given on Rent. During the previous Financial Years the 100% reduction was given on the interest paid (Deducting 70% of the Rent Received [-30% goes for maintanance])..

  • Hi,
    I have 3 house. All three taken with some Loans from bank.

    1) House in Bangalore: (Jointly owned by Me and My father) Loan amount 4.5L
    I am staying in this house.
    P: 96176
    I: 71824

    2) House in Noida: (Owned soley by me) Loan about 20L
    This house is occupied by my Parent (Father and Mother)
    P: 100420
    I: 245415

    3) House in Noida (Under construction, Jointly owned by me and my father) Loan about 6.1 L
    I: 66226

    I have PF payment of around 98K, LIC – 1L. How should the declaration be done?
    Currently, I claim tax rebate for house #2, and my father claim tax rebate for house#1. Do i need to show notation rental earning in my tax declaration…
    Please guide how do I and my father should file tax returns.

  • Kiran Chhabria

    Dear Sir
    Wrt Sec 24 of HL Interest exemption increase till 2.5 Lacs pa; please clarify if this can be applicable for home loan which I have availed in Dec 2012

  • Financial Advisor

    Rebate is available only if the house is in yours name. You cannot get loan if you are not the co-owner

  • Raj Kumar Sharma

    I have taken two house loans for the same house, first in 2005 for new construction and second in 2012 for renovation. Can I deduct both the interest amounts from my Income ?

  • I am a DDO of my office. Let me clarify as if an employee taken an housing loan in the name of himself and his wife, how the calculation of tax exemption of interest and principal would be calculated in case of wife has no income.

  • ashim

    Taken home loan with my father as co-applicant (to increase loan amount limit).
    EMI are paid by only me and Property is only under my name.
    Can i claim 100% Principal and Interest exemption benefit.

  • Rajesh

    I have Two resident Property , one is in Mumbai & second is in Gujrat. i get the housing loan on the both the property. as well as i am staying in Thana district on rental basis.
    can i take the rebet in housing Loan of Both the property as well as taking benefit for rent in the FY 12-13?

  • Mukesh Kumar

    I had taken personal loan and purchaged a house as bank is not able to give home loan in my house sale aggriment period. am I able to get rebate on personla loan intreset under section 24(b) as I used personal loan to buy house.


    Would some one please send me a specimen of H.B.L certificate required for I.Tax
    calculation purpose ?

  • Rajan

    If a house has been taken in my and my wifes name can we both seprately claim excemption from Incomtax …..and if yes how much it would be ..would be be Principal-Rs 20000/- and Interest from Housing Loan-Rs 1.5 lacks in ratio of 50% or we can both claim full amount

    • Financial Advisor

      The total exemption claimed cannot be more than the prescribed limits. However you can decide on the ratio. The amount you claim should have been paid through respective accounts also.

      • Russell

        Wrong analysis.

        a) Principal is not restricted to 20,000 any longer. You can avail upto INR 100,000 u/s 80C. The ratio in which you share this amount is again to be pre-decided. Since the property is in Joint name what is important to determine whether a Joint Loan has been taken as well and the ratio in which the repayment is made between the husband & wife. In joint loans, it is always better to make funds from a Joint A/c, as it becomes easier to prove contribution ratio. Here are various scenarios:

        1) P= 100,000; Sharing ratio =50% between Husband & wife.
        Both can claim Rs. 50,000 each u/s 80C in their respective returns

        2) P= 30,000; Sharing ratio =50% between Husband & wife.
        Both can claim Rs. 15,000 each u/s 80C in their respective returns

        3) P= 200,000; Sharing ratio =50% between Husband & wife.
        Both can claim Rs. 100,000 each u/s 80C in their respective returns

        4) P= 400,000; Sharing ratio =50% between Husband & wife.
        Both can claim Rs. 100,000 each u/s 80C in their respective returns, as they are restricted to max 100,000 under that section

        5) P= 120,000; Sharing ratio =80%:20% between Husband & wife.
        Husband can claim 96,000 and wife can claim 24,000

        6) P= 150,000; Sharing ratio =80%:20% between Husband & wife.
        Husband can claim 100,000 (although his portion is 120,000, he is restricted to INR 100,000 u/s 80C; and wife can claim 30,000 being her share)

        7) P= 150,000; Sharing ratio =100%:0% between Husband & wife.
        Husband can claim 100,000 (although his portion is 150,000, he is restricted to INR 100,000 u/s 80C;)

        b) Now let’s talk about Interest exmption treatment U/s 24. It is to be treated in the same manner, with the following exception- shown as an example:

        1) Int= 180,000; Sharing ratio =50%:50% between Husband & wife.
        Husband can claim 75,000 and wife can claim 75,000 as well. They are both restricted to the overall limmit of INR 150,000 under this section.

        Additional comments:
        AAA) It is important to note that the Principal & interest has to be in the same ratio between Husband & wife. Cannot have a case where Principal is shared 80:20 and Interest: 50:50

        BBB) The sharing ratio should remains constant throughout the duration of the loan, unless ownership of the property changes (eg. death of spouse or inclusion of new co-applicants at the time of refinancing or re-registration of property ownership).

        CCC) Since the Interest component is higher in initial years and declines as the loan is repaid back, it is recommended that the partner having greater income (eg. Husband) take the majority ratio, to avail greater tax benefits. Focus should be of repayment of principal in initial years so that both H & W can avail max 80C benefits; subsequently as years pass the W gets greater benefits u/s 24.


  • Rajan


    I have 3 Questions

    I have taken a housing loan on which i am already taking a rebate on Intereset on Housing loan of Rs 1.5 Lacks.Now if i take a second home in my Wifes Name,with i being the co-Applicant,can i take a rebate on Interest of Rs 1.5 Lacks again.

    And this home is under construction and will take close to 2 years to complete,Still i will get the interest excemption or there is a seprate calculation for pre construction EMI rebate….on interest

    • Financial Advisor

      Yes you can take rebate on second loan also. You will get interest exemption on the second loan. Once it gets completed you will have to show rental income from one house. You cannot show both houses self occupied.

  • My annual income is Rs.4.25 lakh working in central govt organization and my retirement date March 2021 and i am a saving account holder of union bank of india and state bank of india. i have booked flat and i would like to apply for home loan. Which bank is suitable for me to apply home loan? what are the incomtax rebate/exemption on home loan?
    Please specify the same.


    I’ve taken home loan, but I’ve not yet got possesion of my new home.
    I’ve paid Stamp duty and Registration Charges.
    Currently I’m staying in a rented home.

    Can I claim Stamp Duty and Registration charges for income tax exemption along with HRA.

    • Financial Advisor

      Housing loan exemption is for interest and principle amount only you have paid for housing loan. If there is no housing loan taken there is no exemption.

  • Roopesh

    I have taken a home loan for a under construction property. I am yet to get possession and currently I am paying Pre-EMI for the loan
    Total amount paid this year is Rs 2,00,000 ( Rs Two Lakhs)
    As per tax laws I cant claim rebate under section 24(b) until construction is completed.
    However assuming once construction is completed in FY2013-14. I will be able to claim Rs 40,000 ( 2 Lakh/5) next year. But I will also pay another 2 lakh rs in FY2013-14 as interest. So will I be able to claim max of 1.5 lakh or 2.4 lakh or 1.9 lakhs ( 1.5 from current year + 40k from rollover )
    Pls clarify

  • Anil Nair

    My contractor completed constructing my house by mid of March 2012, for which I have a realty and a subsequent housing loan, both from SBI. My contractor has applied for the occupancy certificate from the corporation, but it is unlikely to be received before 31 March 2012. Can I get the IT benefit of the interest paid portion of either or both the loans for the FY ending March 2012? (Realty loan EMIs are being paid since April 2011. Only monthly interests are served on the housing loan so far (March 2012))

  • Umesh

    Dear ,

    I have a home loan for which I have got Rs 66000 interest exemption and 55000 principal amount exemtion.
    Yet after this I have already paid Rs 1,50,000 as tax.
    If I take 2nd home loan and the stamp duty of Rs 1,20,000 is paid. Will this help me to get tax rebate ?
    Yes Or No.
    Please revert.

    Thanks in advance.

  • aditya barve

    Two housing loans are availed for two different properties. whether interest exemption can be claimed for both the loans

  • srilakshmi g

    im also facing same problem like anil.i am already taken a housing loan from sbi. house property on wife name she is not earning member of the family. the problem is husband is garanter. and he is working in pvt the bank is teling that he is not elegible to get any tax benifit. what husband can do to get a tax benifit from his salary? and we are having joint account in same bank principle and interest is debitin form that account

  • anil kumar saraswat

    house property on wife name she is house wife but house loan taken by husband working in private sactor in bank loan documents borrower is husband and coborrower is wife. may husband can take tax banifit.

  • baktha


    I have taken Housing loan during May 2011,House completed and am paying full EMI since beginnig ,however i have not occupied . am residing in rental house. In this case am i eligible for both HRA exemption and housing loan interest (Rs 1,50,000)exemption.
    Please help

  • Mukesh Tiwary

    My salary Income is Rs.6 Lacs I have Hone Loan my as per certificate Rs.1.65 Lacs Interest amount and Rs.65000/- repayment,
    Kindly advice for my return of Income–
    Can I shown Income from House Properth -150000/- adn sec 80cce Rs.65000


  • Ranganath

    I am staying in Rented house, I booked a apartment that has still under construction.
    should have to claim both Home loan as well as HRA?

    Please give me more information.


    Is sundaram housing finance can be eligible for claiming tax exemption?

  • suresh

    Both husband and wife are working in central govt. departments have taken a loan for purchasing a house from LIC Housing Finance Ltd. we understood that both are eligible from tax exemption. Under what rule shall we both get tax exemption ? kindly clarify how much amount of share on both prinicipal and interest shall we both get.

  • meenu joshi

    I get a discount of rs 100000 agaisnt purchase of house, they deduct Rs. 10000 TDS and pay me 90000 rs please sugest me this amount is futher taxable. My salary income is more than 1000000. I am waiting for your reply.

  • Vijay Raghavan

    What is the treatment of Stampduty for I T Exemption whether it can be carried forward.

  • suma

    I and my husband have a house loan in our joint name. My husband is an Ex-army and now he is not working anywhere. I am a central government employee and the emi amount is paid by me. I want to know the interest paid by me is fully exempted in my name.

  • suresh

    Housing loan is taken by husband and wife. both are working in central govt. departments. Are they both exempted from income tax ? or Any one of them are exempted ?

  • H.Khanra

    I have house approx.recent market value 15.00 lakhs purchased through total govt. loan of Rs.4.40 lakhs during June’2000.Half of which repaid and taking IT benefit 30,000.00 for principal and 15,000.00 for interests. Now will it be lawfull to take again Rs.10.00 Lakhs house building loan to purchase house/flat for my mother (parents having no income)and at the same time may eligible to take income tax benefit total at maximum limit.

  • Anuradha

    I and my husband have a house loan in our joint name and the total interest is above 3 lacs Rupees per annum. Are we elligible tax deduction for 1.5 Lac each or only Rs 75000 each since the upper limit is 1.5 lacs

    • k v c kutty

      The husband and wife has jointly taken a housing loan in respect of their self-occuped flat on which they pay more than Rs. three lakhs per annum. Please let me know the amount of interest each of them can claim for income tax purpose. Please clarify whether both can claim Rs.1.5 lakhs each or whether it is restricted to 75,000 each.? Thanks

  • brijesh

    i am living in a government accommodation in delhi, my house is not in the same city,but is in NCR teritory,it has not been given out on rent. can i claim exemption on home loan under section 24 . will it be given by DDO or i will have to apply when i file my tax returns.

  • Soumya Ranjan

    I have a home loan in which i am as a co applicant. the emi amount is paid by me. property is on my mothers name. My mother is having no income. She is a housewife. She is not filling any form 16. Is there any facility like, My mother can give an authorisation saying that the property will belong to me in future so that I can avail the home loan benefits.

    • Autitor

      Yes you can avail

      • alok

        Hi… I am also facing the same problem but i didn’t get any solution. All banks are saying that u can’t get tax benifit without transferring that home on my name in place of mother’s name. So, Please tell me briefly to get tax benifit if i take loan for a home that is owned by my mother but i have to take loan as a gurranter or as a co- applicant. Even SBI is not ready to make me /co- applicant for that loan. They are making me gurranter and saying that as a gurrenter u can’t get tax benifit.
        So, please reply me briefly …I am in big trouble…

        • Financial Advisor

          “You cannot take tax benefit until the property is in your name”. In other words there will be no tax benefit what may be the criteria of taking loan if the property is not in your name.

  • dinesh

    What are the rules if one takes the house loan for a second house (if already there is one more house owned by the person but the loan for that house is cleared)? Financial advisor, please do advise…

  • utsav jain

    hosing loan is taken by husband and wife both are government servant in the income tax certificate shows both names first of wife and second name of husband. income tax benefit weather 50% sharing can be done by either. weather second name can take full advantage alone?

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