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I have a home loan in which I am a co-applicant. However, the total EMI amount is paid by me. What is the total income tax exemption that I can avail of?

- by Sudharani, Jayanagar

You can claim income tax exemption if you are a co applicant in a housing loan and if you are the owner or co owner of the property in question. If you are paying part of the EMI, you will get tax benefits in the proportion to your share in the loan and if you are the only person who is repaying the loan, you can claim the entire tax benefit for yourself.   You should enter into a simple agreement with the other borrowers stating that you will be repaying the entire loan. 

Generally, the tax benefits in respect of properties jointly owned is restricted to the respective shares in property. If the documents do not specify the shares of each of the co-owners, it is presumed that both the joint owners have equal shares. But since in your case,  the EMIs  are paid  from out of your salary, you may claim the full tax benefits.  Your son may give you a letter stating that the entire EMIs are being paid by you and therefore, he does not claim any tax rebate in respect of the Housing Loan jointly obtained by him and his father.


These are all the legal questions answered by Advocate S.Selvakumar in various magazines, in various occasion including realestate reporter monthly.