India, Dec. 13 -- Ahmedabad-based Arjun Saxena and Kavya Saxena purchased a flat with an annual home loan interest of Rs.3 lakh. If Arjun had taken the loan alone, he could claim only Rs.2 lakh under Section 24B, losing the tax benefit on the remaining Rs.1 lakh. Instead, they chose joint ownership with equal EMI contribution.

The Rs.3 lakh interest is split into Rs.1.5 lakh each, well within the Rs.2 lakh limit, allowing both to claim their full share. Together, they deducted Rs.3 lakh from their taxable income, saving Rs.90,000 in tax compared to Rs.60,000 if only one person had claimed it. By sharing the loan, the couple increased tax savings and reduced their effective borrowing cost.Also Read: Property Tax made simple: Rules, rebate...