Tax benefits for co-borrower

In case the home loan is taken by two or more people with independent income sources, then all of them can avail tax benefits with respect to the same housing loan to the extent of the amount of loan taken in their own respective name and thereby their contribution towards the repayment of a loan.

Any one planning to buy a house should undergo proper tax planning and avail maximum tax benefits under the home loans. However if it is proved that the home loan is simply an arrangement between the loan-seeker and the builder or with a third party for the purpose of claiming tax benefits, then tax benefits will not be allowed and benefits, previously claimed, will be added to the income and taxed accordingly.