Home loan interest tax deduction for joint owners: Andhra Pradesh buyers (Vizag, Vijayawada co-borrowers)
Short answer: if two or more people buy a flat or house in Visakhapatnam, Vijayawada, Guntur, Tirupati or anywhere in Andhra Pradesh together and take a joint home loan, the Income Tax Department's pages say each co-owner can claim home-loan interest separately, in line with their share and what they actually pay towards the interest, as long as the shares are clear. For a home you live in, the limit is Rs. 2,00,000 (or Rs. 30,000 if the conditions are not met), and it is only in the old tax regime: the default new regime does not allow it. Income tax is a central law, so the rule is the same in every state; the local part is how your sale deed and loan papers are written.
What the Income Tax Department's pages say, point by point
| Question | Flat or house you live in (self-occupied) | Flat or house you let out |
|---|---|---|
| Interest deduction limit | Rs. 2,00,000 if the loan was taken on or after 1 April 1999 for buying or building, the purchase or construction is completed within 5 years from the end of the financial year of borrowing, and you have the lender's interest certificate. Otherwise Rs. 30,000 (also for repair or renovation loans). | Interest is allowed without a limit, even if it is more than the property's annual value. |
| In the default (new) tax regime | Not allowed. The department's page says the section 24(b) interest deduction "for a self-occupied house property is not allowed" under section 115BAC. To claim it, you choose the old regime in your return. | Interest still reduces the rent income, but a house-property loss cannot be set off against salary or other income. |
| Joint owners | If the shares are "definite and ascertainable", each co-owner's share is computed separately, and each co-owner claims interest "according to their contribution in repayment of interest". If the shares are not ascertainable, the income is taxed as an Association of Persons / Body of Individuals. | |
| Interest before possession | Interest for the period before the purchase or construction is complete is allowed in 5 equal yearly instalments, starting from the year it is completed. | |
| Not deductible | Processing fees, brokerage, commission and penal interest for late EMIs. | |
Before you sign: six checks for a couple or family buying together
- Write each owner's share in the sale deed (for example 50:50 or 60:40). The department's rule on separate computation depends on shares being "definite and ascertainable".
- Make each owner who wants the deduction a co-borrower on the loan, and pay the EMI from their own account in line with their share. The claim follows each owner's contribution to the interest.
- Ask the bank for an interest certificate in each borrower's name, or one that shows the split. The Rs. 2,00,000 limit needs a certificate from the lender.
- Under-construction flat? Check the builder's RERA completion date. The higher limit needs completion within 5 years from the end of the financial year you borrowed in; interest paid before that is claimed later in 5 instalments.
- Compare old vs new regime each year with the department's Income and Tax Calculator. A salaried owner with no business income can switch every year in the return (FAQ Q11); the self-occupied interest claim is only available in the old regime.
- Keep the file: sale deed with shares, loan sanction letter naming all borrowers, yearly interest certificates, EMI bank statements, and the completion or occupancy certificate date.
Common mistake: one spouse pays the whole EMI but both claim the deduction, or a co-owner who is not on the loan claims interest. The department's text ties each claim to the owner's share and contribution. If your case is unusual, ask a chartered accountant before you file.
Not quoted here (to verify): principal repayment and stamp duty under section 80C, and any first-time-buyer deduction. We did not read these on an official page today, so we don't give limits for them.
Andhra Pradesh: getting the papers right at registration
The share split is written in the sale deed registered through IGRS Andhra Pradesh at the Sub-Registrar office (see our stamp duty guide below for the charges). If you are buying an under-construction flat in Vizag or Vijayawada, check the AP RERA completion date before relying on the higher limit, and keep the bank's legal opinion and the mortgage (deposit of title deeds) papers with your interest certificates.
Related guides
- Stamp duty and registration charges
- Home loan mortgage (deposit of title deeds)
- What the bank's legal opinion checks
- Verify the RERA project registration
- GST on an under-construction flat
Buying in Telangana? See the Telangana guide.
Not tax or legal advice. This page summarises Income Tax Department pages read on 23 Oct 2026, which describe the Income-tax Act, 1961. The Income-tax Act, 2025 applies from 1 April 2026, so confirm the current section, limits and your regime choice with a chartered accountant before you file.
A free sample from our Andhra Pradesh property do-it-yourself pack: which documents to keep, which portal to open, and in what order.
Get it free (instant download)FAQ
Can joint owners in Vizag or Vijayawada both claim home loan interest?
Yes, if the sale deed shows each owner's share and each repays the loan. The Income Tax Department's page says each co-owner claims interest according to their contribution in repayment of interest. Income tax is central, so this is the same in Andhra Pradesh as elsewhere.
What if our shares are not written in the sale deed?
The department's page says that if co-owners' shares are not ascertainable, the income is taxed as an Association of Persons / Body of Individuals. Writing the shares in the deed avoids that question.
Is processing fee on the home loan deductible?
No. The department's House Property page lists processing fees, brokerage, commission and penal interest as not deductible.
Does the Income-tax Act, 2025 change this?
The new Act applies from 1 April 2026. The department pages we read describe the 1961 Act, so the new section numbers and any change in limits are to verify with a chartered accountant.
Official sources
- Income Tax Department: Self-Occupied House Property (co-owners, Rs. 30,000 / Rs. 2,00,000, pre-construction interest)
- Income Tax Department: House Property (no s.24(b) self-occupied interest under s.115BAC; non-deductible charges)
- Income Tax Department e-filing: FAQs on New vs Old Tax Regime (Q7, Q11)
Not legal advice. We don't check properties or certify ads. A lawyer must confirm title, and the Authority's own notices override anything on this page.