House given on rent

If you are serving the EMI of a property that you have let out then the entire interest irrespective of the maximum limit of Rs 1.5 lakh is deductible under Section 24 but the benefits of principal deduction cannot be availed by you. Moreover the rent earned through this property is added to your taxable income.

Joint ownership and Joint loans

If the property is jointly acquired by a couple and they become co-applicants for the loan then they can individually claim the tax benefit of Rs 1.5 lakh each. This is a wise option as it increases the tax free income for the family. However it should be remembered that the joint ownership of the property is a necessity to avail this benefit.

The tax deduction on home loan is a factor that is attracting majority of the people to buy houses despite of the property prices soaring high.