Home Loan Tax Mastery: Section 24(b), 80C, Joint Ownership Nuances

Get the structure right and you can save real money while keeping compliance clean.

The Big Buckets

• Interest: Section 24(b) up to limits for self‑occupied. Let‑out has different rules.
• Principal: Section 80C for principal inside the overall 80C limit.
• Stamp duty and registration can also qualify under 80C in the year of purchase subject to rules.

Joint Ownership Playbook

• To split deductions, each co‑owner must also be a co‑borrower and contribute to EMI. Split in the same ratio as ownership and payment.
• Keep payment trail from each owner’s account to evidence contribution.

Under Construction Nuances

• Pre‑construction interest is claimable in five equal parts from the year of completion.
• Claim only after you get possession or completion certificate.

Let‑Out Property

• Standard deduction on net annual value applies. Interest set off is subject to current caps and carry forward rules.

Tools

• Income Tax Calculator: Model Section 24(b) and 80C outcomes under SO versus let‑out scenarios.