# Tax Benefits on a Joint Home Loan

> Each co-owner who is also a co-borrower can claim Section 24(b) and 80C independently — so a couple can deduct up to ₹4 lakh interest and ₹3 lakh principal.

_By emi.me Editorial · Reviewed by emi.me Editorial · Updated 2026-06-25_
Source: https://emi.me/learn/tax-benefits-on-a-joint-home-loan/

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On a joint home loan, **each co-borrower who is also a co-owner can claim the deductions independently** — so the household's total benefit can be far larger than a single borrower's. Each person can deduct up to **₹2,00,000** of interest (Section 24(b), self-occupied) and up to **₹1,50,000** of principal (Section 80C) on their share, all under the old regime. These are FY 2025-26 rules and this is general information, not tax advice.

## The two conditions

To claim, a person must be **both an owner of the property and a borrower on the loan**, and must actually contribute to the repayments. A spouse who is only a co-borrower but not a co-owner — or a co-owner who doesn't repay — generally can't claim. The deduction is split in the ratio of ownership and repayment, so keep clear records of who pays what.

## How the limits double up

The caps are *per person*, not per loan. So two equal co-owners servicing the same loan can, between them, claim up to **₹4,00,000** of interest and **₹3,00,000** of principal in a year — double what one borrower could.

**Worked example.** Say a couple takes a loan whose first-year interest is ₹5,00,000 and principal ₹3,00,000, split 50:50. Each claims their half — ₹2,50,000 of interest (capped at **₹2,00,000** each) and ₹1,50,000 of principal (within the **₹1,50,000** 80C cap each). For a co-owner earning ₹15,00,000 in the old regime, that share of the loan reduces tax by roughly **₹1,09,200**; the second co-owner gets their own, similar benefit. Model your own share in the [tax-benefit calculator](/calculators/tax-benefit/) by setting your ownership percentage.

## The catch, again

All of this lives in the **old regime**. If either of you is better off under the new regime overall — quite possible given its lower rates — the joint-loan deductions don't apply to that person. Each co-borrower should compare regimes on their own income; see [old vs new regime for borrowers](/learn/old-vs-new-tax-regime-for-home-loan/). As always, confirm the split and the claims with a chartered accountant.