New Delhi, Manish Kumar Mishra. Everyone’s dream is their own home. This requires a huge investment. In such a situation, Home Loan comes in handy for us. It is not that those who are short of money, only those people take home loan for home purchase. The wealthy and the capable also take the help of home loans for income tax benefits. Let us understand, based on our discussion with our expert Balwant Jain in Jagran Dialogues, how to make the most of a home loan.

Watch the full video of this special episode of Jagran Dialogues here

Do this home work, it will take less time for home loan processing

According to tax and investment expert Balwant Jain, first of all arrange your income related documents like income tax return, salary slip, bank statement etc. If you are taking a joint home loan, that is, you have a co-borrower with you, then collect the income related documents as well. KYC documents are also required for home loan application. If you have identified the property, keep the property documents ready as well. With all this applying for a home loan will not take much time in processing your loan.

Benefits of joint home loan

There are many benefits of taking a joint home loan. Jain said that the biggest advantage of taking a joint home loan is that your loan eligibility increases. You can take a joint loan with your parents and spouse. Explaining other benefits of joint home loan, Jain said that the co-borrower also gets the benefit of deduction in income tax. He said that there is benefit in taking a joint home loan only if the co-borrower is also earning. Only then can you get more money under the home loan.

Anyone paying home loan EMI cannot avail tax benefits

Jain said that not all borrowers who take home loans get the benefit of income tax. He explained that it is necessary that the property should be in the name of the EMI payer or it is a co-borrower, only then he will be able to get the benefit of deduction in income tax.

If you have taken home loan with co-borrower, then know in what ratio you will get income tax benefit

A big question is that if you take a home loan with a co-borrower, then in what proportion can you claim the income tax benefit on the repayment of the EMI. In response to this question, Balwant Jain said that the ratio in which your share in the property is not necessarily the same ratio in the home loan. You will get the benefit of income tax under Section 80C and 24B of Income Tax in the same proportion in which you are repaying the home loan. Even though you have taken a home loan with a co-borrower, but if you are paying the EMI in the ratio of 100:0, then your co-borrower will not get the income tax benefit.

Edited By: Manish Mishra