A joint home loan lets two or more people, usually a couple or a parent and child, combine incomes to borrow more. If each co-borrower is also a co-owner and pays towards the EMI, each can claim home loan tax benefits separately, which can double the deduction for a family under the old tax regime. The catch is that joint ownership also means joint liability and joint decisions, so it is worth recording shares clearly in the sale deed and planning for what happens if circumstances change.
Key takeaways
- Co-borrowers combine incomes, which can increase loan eligibility.
- Each co-owner who is also a co-borrower and pays EMIs can claim interest and principal within their own limits under the old regime.
- State ownership shares in the sale deed; tax and rental income follow those shares.
- Every co-borrower is liable for the whole loan; a default affects all credit scores.
- Selling, refinancing or removing a co-owner later needs everyone’s consent and fresh documents.
Co-borrower vs co-owner: not the same thing
| Role | What it means | Tax benefit on loan? |
|---|---|---|
| Co-owner and co-borrower | Named in the sale deed and on the loan, pays EMI | Yes, in proportion to share and payment |
| Co-borrower only | On the loan, not on the title | No |
| Co-owner only | On the title, not on the loan | No loan deduction; still taxed on share of rent |
| Guarantor | Backs the loan if borrowers default | No |
Most lenders require all co-owners to be co-borrowers, though not every co-borrower needs to be a co-owner. Close relatives such as spouse, parents and children are commonly accepted; siblings and others depend on the lender’s policy.
Benefits of a joint home loan
Higher eligibility
Lenders assess the combined income and obligations of all co-borrowers, which can raise the loan amount. See home loan eligibility for how lenders calculate it.
Double tax benefits (old regime)
Each co-owner who repays can claim:
- interest on a self-occupied home up to ₹2 lakh a year (familiar section 24(b), renumbered in the Income-tax Act, 2025);
- principal, stamp duty and registration fee within their own ₹1.5 lakh limit (familiar section 80C, now renumbered).
So a couple each in the old regime can together claim up to ₹4 lakh of interest and ₹3 lakh under the 80C-type limit, if their EMIs and shares support it. Under the new regime, no deduction is available for a self-occupied home, so the tax case for joint ownership is weaker; the eligibility benefit remains. Details in home loan tax benefits.
Lower registration fee for some women buyers
In Tamil Nadu, where all buyers are women and the property is worth ₹10 lakh or less, the registration fee is 1% instead of 2%. A joint purchase that includes a man does not qualify. See buying property in a woman’s name.
Recording ownership shares
If the sale deed does not state shares, co-owners are generally treated as owning equal shares. For tax, each co-owner’s share of rent and loan interest should match their ownership and the money they put in. Practical steps:
- Write the shares (for example 50:50 or 60:40) in the sale deed.
- Pay the down payment and EMIs from each owner’s own account in proportion to shares, where possible.
- Keep records of who paid what, including stamp duty and registration.
Under the 2025 Act, co-owned property is dealt with in section 24 (old section 26), which taxes each co-owner separately on their share.
Pitfalls to plan around
Joint and several liability
Each borrower is responsible for the entire loan, not just their share. If one stops paying, the lender can recover from the other, and a missed EMI shows on everyone’s credit report. See credit score and home loans.
Separation or disputes
If a relationship breaks down, you cannot simply remove a name. Options include one owner buying out the other through a release deed (family release carries capped stamp duty in Tamil Nadu) and refinancing the loan in one name, which the lender must approve.
Death of a co-owner
A co-owner’s share passes under their will or succession law, not automatically to the surviving co-owner. A will and a term insurance policy covering the loan avoid problems. Read gift, will or settlement deed.
Clubbing of income
If you fund your spouse’s share with your money, rent from that share may be taxed in your hands under the clubbing rules (old section 64, now renumbered). Genuine contributions from each spouse’s own income avoid this.
Selling later
All co-owners must sign the sale deed. Capital gains are taxed on each owner’s share, and each can claim reinvestment exemptions on their share. See saving capital gains tax.
Is joint ownership right for you?
Joint ownership suits couples and families with two incomes who plan to hold the property long term, especially in the old tax regime. It is less useful where one person pays everything, or where the future of the relationship or the property is uncertain. Speak to your lender and a chartered accountant before finalising names on the deed.
Frequently asked questions
Can both husband and wife claim home loan tax benefits?
Yes, if both are co-owners and co-borrowers and both pay towards the loan. Each claims within their own limits under the old regime.
Is the ownership share presumed equal if not stated?
Generally yes. It is better to state the shares clearly in the sale deed.
Can a co-borrower who is not an owner claim tax benefits?
No. Only co-borrowers who are also co-owners can claim deductions for interest and principal.
Can I remove my name from a joint home loan?
Only with the lender’s consent, usually by the remaining borrower refinancing or qualifying alone, and by changing ownership through a registered document.
This article is general information as of September 2026, not legal, tax or financial advice. Rules and rates change; confirm with a qualified advocate, chartered accountant or the relevant department before you act.
References
- ClearTax: Income-tax Act 2025 old vs new section numbers
- TaxClue: Home loan tax benefits under the Income-tax Act 2025
- Tamil Nadu stamp duty and registration fee structure (TN Single Window Portal)
- DT Next: 1% registration fee concession for women in Tamil Nadu
Buying a home together?
Our Coimbatore team can help couples and families shortlist homes that fit a combined budget and plan the paperwork right.
