Monday, June 21, 2010

Joint Ownership of Property

Most of us buy a property just before we get married or soon after marriage. Now Property may be purchased in own name i.e. singly or jointly. Jointly would be one or more persons, so usually husband and wife or within the family. Once you purchase a property jointly you say that all the owners would have equal rights to use the property.

One of the advantages of joint ownership is if anything happens to one owner the title automatically passes to the other joint owner/s. There are other advantage is, if the joint owners have taxable income and loan you need a loan, you can get a higher loan amount.

All the joint owners will also get the tax benefits. Joint Owners can claim separate deductions for their share in the property. But we have to be careful, while making payments ensure that all the joint owners make payments directly as per their share in the property.

This way there will not be any tax complications in future. As an individual one can claim deduction of Rs. 1.5 Lakhs towards interest payment against loan during a fiscal year. So each joint owner can claim upto Rs. 1.5 Lakhs towards interest payment, subject to the total of all claims does not exceed the total interest actually paid during the year.

So if the joint owners have their own taxable income, its best to go for joint ownership. Tax saved is money earned.

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