deduction in a year remains 15 lakh more than one loan benefits under section 80c and section 24b can be taken for more than one home if all the properties meet the requirements irrespective of the number of homes the limit of 1 lakh under section80c and 15 lakh under section 24b still apply however if the house has been given out on rent there is no limit on the deduction of the interest paid joint home loan coborrowers can separately claim tax deduction if the house is jointly owned the tax benefit can be availed of in the same proportion as the ownership in the property if the husband has paid 60 of the total amount the tax deduction will be available in the same proportion so if principal repaid during a year is 1 lakh the husband can claim deduction of 60000 and his wife for 40000 loan from relatives also eligible for tax breaks the tax incentives on home loans are available even if you have borrowed from your relatives or informal sources with respect to claiming deduction for interest on a housing loan there are no conditions regarding the entity from whom the amount is borrowed says parizad sirwalla executive director kpmg adds balwant jain chief financial officer apnapaisacom the requirement is that the loan should have been taken for the purpose of construction purchase renovation and repair of the property however you cannot claim deduction under section 80c for the principal repaid if the loan has not been taken from a financial institutionno tax benefits for buying plots home loan tax benefits are offered only in case of built property there is no tax deduction if the loan is taken to buy a plot of land a plot of land would not qualify as a house property and hence any income derived from it will not be taxable under the head income from house property accordingly the deductions available for interest on loan for purchase of the plot will also not be allowed under the said head says sirwalla ending the loan should you prepaythis is a perennial dilemma for home loan customers and the short answer is yes the long answer is that if the interest you are paying on the home loan is higher than that being earned by your investments you are better off foreclosing the loan five years ago nikhil badkas a mumbaibased software professional took a home loan of 10 lakh at an interest rate of 725 at the time he hadnt imagined that he would have to pay an interest rate of 1112 badkas has prepaid about 1 lakh and plans to refinance his loan at a cheaper rate mumbaibased financial planner ashutosh wakhare advises that if you are paying 89 on the loan it may be a good idea to continue with it and invest your surplus elsewhere after all even bank fixed deposits are offering 910 returns per annum but if the rate of interest is very