Joint Home Loan Tax Benefit: Can Both Borrowers Claim? (2026)

Budget 2026 did not increase the Section 24(b) of the Income Tax Act cap; it stays at ₹2 lakh per person. Most home loan borrowers were disappointed.

But couples with a joint home loan do not need the cap increased. They can already claim ₹4 lakh combined, ₹2 lakh each, if both names are on the loan AND the property. Most couples claim only one. The second ₹2 lakh disappears silently, every single year. This is the joint home loan tax benefit both borrowers can, and should, be using.

Quick Answer: Can both borrowers claim Section 24(b) on a joint home loan?

• Yes, if both are co-borrowers on the loan agreement AND co-owners on the property sale deed

• Each co-borrower can claim up to ₹2 lakh per year under Section 24(b) for interest paid

• Each co-borrower can also claim up to ₹1.5 lakh per year under Section 80C for principal repaid

• This benefit is available only under the Old Tax Regime; the New Tax Regime offers no deduction for self-occupied home loans

The ₹60,000-a-Year Deduction Most Couples Miss

Under Section 24(b) of the Income Tax Act, every borrower can claim up to ₹2 lakh per year in home loan interest as a deduction against their taxable income. Most people know this. What most do not know is that both co-borrowers can claim home loan interest deduction independently, each up to ₹2 lakh, in their separate ITR (Income Tax Return) filings.

The same logic applies to Section 80C: each co-borrower claims up to ₹1.5 lakh on the principal repaid, independently.

Take Meera and Rajesh. Both earn ₹12 lakh a year. Their CA filed only Rajesh's claim under Section 24(b). Meera's ₹2 lakh deduction went unclaimed every year.

Same loan. Same interest paid. Double the tax benefit if the structure is right.

Check whether both your names are on the property sale deed today; that one step determines everything else.

The One Condition That Most Couples Get Wrong

Being a co-borrower means both names appear on the loan agreement. Banks require this routinely, especially to improve eligibility. That part most couples get right.

Being a co-owner means both names appear on the property sale deed and registration document. This is an entirely separate legal document, and many couples register the property in one name because it "seemed simpler" at the time. That single oversight blocks the second borrower from ever claiming any deduction.

Both conditions must be true simultaneously to claim the co-owner co-borrower home loan tax benefit in India:

✅ Co-borrower - both names on the loan agreement ✅ Co-owner - both names on the property sale deed

Checklist to verify your position:

• Step 1: Locate the property sale deed and registration document

• Step 2: Check whether both names appear as joint owners

• Step 3: If only one name appears, consult a CA about rectification deed options

• Step 4: If both names appear, both can file their individual ITR and claim independently

Budget 2026 kept the ₹2L cap unchanged despite sustained industry pressure. But couples with the correct ownership structure already have a combined ₹4L, no legislative change needed.

If your sale deed is not yet confirmed, verify it before the ITR filing season closes on July 31.

How Each Co-Borrower Claims the Deduction

The total interest paid on the joint loan must be split between co-borrowers according to their ownership ratio. Equal co-owners use a 50/50 split. The Section 24b joint home loan limit per person is ₹2 lakh, not ₹2 lakh per loan.

Example - ₹70L loan at 8.5%, Year 1:

Approximate Year 1 interest = ₹5.95 lakh

Note: ₹1.95L above the combined cap is unclaimed; this is normal and expected on large loans. The law caps per person, not per loan.

Section 80C on principal - Year 1 (₹70L, 8.5%, 25-year term):

Approximate Year 1 principal = ₹4.9 lakh

Documents each co-borrower needs for their individual ITR:

• Interest certificate from the bank (each uses their proportional share, not the full amount)

• Principal repayment certificate (same split applies)

• Property sale deed showing both names as co-owners

The joint home loan 80C deduction for both borrowers cannot exceed what was actually paid; the allocation must reflect true ownership and actual payment. Get the interest certificate from your bank and confirm the split before filing.

What If One or Both Are on the New Tax Regime?

The New Tax Regime became the default in India from FY (Financial Year) 2024-25, and that status continues into 2026. Under the New Regime, no deduction is available under Section 24(b) or 80C for a self-occupied home loan. The joint home loan tax benefit 2026 for double deduction is exclusively an Old Tax Regime advantage.

If either co-borrower has switched to the New Regime, they lose their individual claim entirely. Only the co-borrower still on the Old Regime can claim.

Planning consideration:

For Meera and Rajesh, both earning ₹12 lakh, both in the 30% slab, the ₹2L deduction under Section 24(b) saves each of them ₹60,000 per year. Both benefit equally from staying on the Old Regime. The arithmetic is clear.

For couples where incomes differ significantly, it is worth calculating whether prepaying saves more than the tax benefit is worth before deciding which regime each person should be on.

Note on Section 80EEA: Section 80EEA was introduced in Budget 2019 to make homeownership more accessible for first-time buyers in the affordable housing segment. It offered an additional ₹1.5L deduction on home loan interest, in addition to the ₹2L allowed under Section 24(b), bringing the total interest deduction for eligible borrowers to ₹3.5L per year. To qualify, the loan had to be sanctioned between April 1, 2019 and March 31, 2022, the property's stamp duty value could not exceed ₹45 lakh, and the borrower could not own any other residential property on the date of sanction. The government did not extend this window in Budget 2022 or Budget 2026. If your loan was sanctioned on or after April 1, 2022, Section 80EEA does not apply to you.

If you are unsure which regime to file under, model both scenarios with a CA before July 31.

What to Do Right Now - 3 Steps

Step 1: Check the property sale deed. If both names appear as co-owners, both can claim. If only one name appears, speak to a CA about rectification deed options before the current financial year closes.

Step 2: Get the interest certificate from the bank. Split the interest figure by the ownership ratio, usually 50/50 for equal owners. Each co-borrower files their proportional share in their individual ITR under Section 24(b). Do not use the full certificate amount in both ITRs; that is incorrect and can attract an ITR notice.

Step 3: File ITR before July 31. Both co-borrowers file separately under the Old Tax Regime. Each claims their share of interest (up to ₹2L cap) under Section 24(b) and their share of principal (up to ₹1.5L cap) under Section 80C.

If the loan is new and the total Year 1 interest is less than ₹4L, each borrower can only claim their actual proportional share, not the full ₹2L cap.

For a complete breakdown of all applicable deductions under both regimes, read the complete home loan tax benefit guide for FY 2026-27.

Frequently Asked Questions

Q Can both husband and wife claim Section 24(b) on a joint home loan?

Yes, if both are co-borrowers on the loan agreement AND co-owners on the property sale deed. Each can claim up to ₹2L in interest deduction independently in their individual ITR. The total claimed cannot exceed the actual interest paid, split by ownership ratio.

Q. What is the maximum joint home loan tax benefit for a couple?

Under the Old Tax Regime: ₹2L each under Section 24(b) for interest (₹4L combined) and ₹1.5L each under Section 80C for principal (₹3L combined). Total: ₹7L in annual deductions. At 30% slab for both: ₹2.1L in combined annual tax savings.

Q. What if both borrowers are on the New Tax Regime?

No deduction is available under Section 24(b) or 80C for a self-occupied property under the New Tax Regime. The double deduction benefit applies only to borrowers on the Old Tax Regime. For most couples with a large joint loan, the Old Regime remains more beneficial.

Q. Is it enough to be a co-borrower to claim Section 24(b)?

No. Being a co-borrower alone is not sufficient. The second borrower must also be a co-owner, meaning their name must appear on the property sale deed and registration document. Without co-ownership, the deduction cannot be claimed, regardless of who signed the loan agreement.

Q. How should the interest certificate be split for a joint home loan?

The bank typically issues one interest certificate per loan. Each co-borrower should use their proportional share, usually 50% for equal owners, when filing their individual ITR. Both can claim the full certificate amount. The split must reflect the actual ownership ratio agreed upon.

Q. What happens if the property is only in one name, but both are on the loan?

Only the person whose name appears on the property sale deed as a co-owner can claim the tax deduction. The co-borrower who is not a co-owner cannot claim Section 24(b) or 80C benefits. Speak to a CA about whether a rectification deed is possible in your specific case.

Summary

• Both co-borrowers can claim ₹2L each under Section 24(b), but only if both are also co-owners on the property sale deed

• Combined annual deduction: ₹4L on interest + ₹3L on principal = ₹7L total

• At 30% slab: ₹2.1L/year in combined tax savings; over 20 years, that is ₹12L more than a single-claimant setup

• New Tax Regime: no benefit available under Section 24(b) or 80C for self-occupied home loans

• Split the interest certificate by ownership ratio; both borrowers cannot claim the full amount

• Check the property sale deed today. If only one name appears, consult a CA immediately

For other ways to reduce total home loan cost, the next lever after tax savings is prepayment - calculate how much you save by prepaying the joint loan.