Can co-applicants avail home loan tax benefits separately

Yes, as co-applicants you can avail tax benefits on the EMIs payable, provided you are co-owners too! For example - you are the owner and your brother is the co-applicant. In this case your brother cannot claim the tax rebates as he is not the co-owner. To avail the tax benefit, your brother has to be the co-owner apart from being the co-applicant.

As per Section 80C, the repayment of principal amount of up to Rs 1.5 Lakh can be claimed as tax deduction by the applicants individually. All the co-borrowers can avail tax benefits separately. If you brothers are two co-borrowers and co-owners, then the maximum total tax deduction under Section 80C can be up to Rs 3 Lakh per annum.

Under Section 24, the interest payment up to Rs 2 Lakh (for Self occupied property) can be claimed by the home loan co-borrowers. If there are two co-borrowers, who are also co-owners, then the maximum total tax deduction under Section 24 can be up to Rs 4 Lakh per annum.

Hope the above helps! Thanks for writing to Advisorkhoj!