Do both the applicant and co-applicant enjoy the tax benefits on availing a home loan?
A co-applicant can only enjoy tax benefits if he or she is also a co-owner of the house that is purchased from the loan. The tax exemptions are based on the proportion of the ownership of the house purchased from the loan. So, if you own 60 per cent and your spouse owns 40 per cent of the house, then exemptions will be given as per your ownership percentage. For e.g. in the above case, a loan amount of Rs 20 lakh will be split as Rs 12 lakh and Rs 8 lakh, respectively, and interest and principal applicable will be taken into account for each individual and the exemptions will be calculated accordingly.
