Joint Home Loan With Your Spouse? How Both of You Can Claim the Tax Benefits

Each co-borrower who is also a co-owner and pays the EMI can claim the interest and principal deductions separately. What the rules require and the mistakes to avoid.

Mumbai prices mean many couples buy together and take a joint loan. Done properly, both of you can claim the home loan tax deductions, which can nearly double the benefit for the household.

The three conditions

Co-owner: your name must be on the agreement or sale deed. Being only a co-borrower is not enough.
Co-borrower: you must be on the loan.
Actually paying: claims follow the EMI you really paid, ideally from your own account so it is traceable.

Being on the loan is not enough. You need to be on the title and actually paying the EMI.

What each of you can claim

Interest: for a self-occupied home, each co-owner can claim up to Rs 2 lakh a year of interest.
Principal: each can claim principal repayment within their own overall limit for such deductions (Rs 1.5 lakh under the old regime).
Stamp duty and registration fall within the principal limit in the year paid.

Splitting the claim

Split in line with ownership share and actual payment. If you own 60:40 and pay 60:40, claim 60:40. If ownership and payment differ, take advice before filing.

Let-out homes

If the flat is rented out, the interest deduction is not capped at Rs 2 lakh, but the loss you can set off against other income each year is limited, with the balance carried forward.

Regime and Act

Several of these deductions depend on the tax regime you choose, and the Income-tax Act, 2025 applies from 1 April 2026. Ask your CA which applies to you. Also read home loan tax benefits under the new Act and how joint owners are taxed on rent.

Frequently asked questions

Can both spouses claim home loan interest deduction?

Yes, if both are co-owners and co-borrowers and both pay the EMI. Each can claim up to Rs 2 lakh of interest a year on a self-occupied home.

Can a co-borrower who is not a co-owner claim the deduction?

No. The co-borrower must also be a registered co-owner of the property.

Sources

This is general information, not legal or tax advice. Rules change, so check your own case with a lawyer or CA.

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