Home Loan Interest

Introduction

Have you bought a house with your spouse or a family member? Are you also paying a home loan and wondering if both of you can get tax benefits? You’re in the right place!

This article explains everything about the exemption of interest on a housing loan in case of co-ownership, especially for salaried persons. And the best part? We’ll show you how to do it automatically in Excel using Income Tax Preparation Software All in One.

It’s like having a tax expert right in your spreadsheet. Let’s dive in.

Table of Contents

Sr#Headings
1What Is Housing Loan Interest Exemption?
2Who Can Claim Housing Loan Interest Exemption?
3What Is Co-Ownership of a Property?
4How Co-Owners Can Claim Tax Benefits
5Section 24(b) and Its Role
6Conditions for Claiming Interest Deduction
7Principal Deduction Under Section 80C
8Budget 2025-26: What’s New?
9How Excel Software Makes It Easier
10Benefits of Income Tax Preparation Software All in One in Excel
11How to Use the Software Step-by-Step
12Auto-Calculate Interest Exemption in Excel
13Avoid Mistakes in Co-Ownership Deductions
14Form 16 and Form 10E Generation
15Final Tips for Salaried Individuals

1. What Is Housing Loan Interest Exemption?

Housing loan interest exemption refers to the tax benefit you get on the interest paid for a home loan. Under Section 24(b), a person can claim up to ₹2,00,000 as a deduction on their taxable income.

2. Who Can Claim Housing Loan Interest Exemption?

Any individual who:

  • Has taken a home loan,
  • Owns the property,
  • Lives in or rents out the house,
    can claim this exemption.

Even better? If the house is jointly owned, each owner can claim it separately!

3. What Is Co-Ownership of a Property?

Co-ownership means two or more people legally own the property. For example, if you and your spouse jointly buy a house, both names appear in the property documents and the loan.

It’s like two people paddling the same boat—both share the weight and the journey.

4. How Co-Owners Can Claim Tax Benefits

When two co-owners pay the loan together:

  • Both must be co-borrowers of the loan.
  • Both must contribute to EMI payments.
  • Both must be co-owners in the property documents.

Then each can claim:

  • Up to ₹2,00,000 under Section 24(b) for interest.
  • Up to ₹1,50,000 under Section 80C for principal.

5. Section 24(b) and Its Role

This section is the backbone of the home loan interest exemption. It allows deductions up to ₹2 lakh on self-occupied houses and even more for rented properties (as per actual interest paid).

6. Conditions for Claiming Interest Deduction

To claim exemption under Section 24(b):

  • The loan must be taken for the purchase/construction of a house.
  • Construction should be completed within 5 years.
  • You must be the owner and borrower.

Miss one of these, and the benefit may slip away!

7. Principal Deduction Under Section 80C

Under Section 80C, the principal part of the EMI is also eligible for deduction up to ₹1.5 lakh per year. But this is shared among co-owners based on their EMI contribution.

8. Budget 2025-26: What’s New?

The Budget 2025-26 has not changed the limits, but it has emphasised digital filing, making tools like Excel-based tax software more useful than ever.

9. How Excel Software Makes It Easier

Filing taxes manually can be tricky. That’s where Income Tax Preparation Software All in One in Excel comes in. It:

  • Auto-calculates deductions,
  • Applies the latest tax rules,
  • Generates Form 16, Form 10E, and salary sheets.

It’s like autopilot for your tax returns.

10. Benefits of Income Tax Preparation Software All in One in Excel

This software is:

  • User-friendly, even if you’re not a tax expert,
  • Updated for Budget 2025-26,
  • Suitable for Govt. and Non-Govt. Salaried employees,
  • Handles co-ownership cases efficiently.

11. How to Use the Software Step-by-Step

  1. Download the Excel software from the Direct Link as given below
  2. Enter personal, salary, and loan details.
  3. Select co-ownership details.
  4. Automatically calculate all deductions.
  5. Generate Forms like Form 16.

It’s that simple.

12. Auto-Calculate Interest Exemption in Excel

Once you input the loan interest and ownership share, the Income Tax Preparation Software All in One in Excel calculates:

  • Individual exemption limits,
  • Total deduction,
  • Whether Form 10E is needed.

13. Avoid Mistakes in Co-Ownership Deductions

Common mistakes:

  • Not declaring the ownership ratio,
  • Only one co-owner claiming full exemption,
  • Mismatched EMI contributions.

The Excel software helps avoid all of these with validation checks.

14. Form 16 and Form 10E Generation

One of the best parts? You can:

  • Generate Form 16 Part A and B,
  • Prepare Form 10E for arrears.
  • Maintain proper records for salary and deductions.

All this—automatically.

15. Final Tips for Salaried Individuals

  • Keep all documents: loan statement, EMI proofs, property papers.
  • Use Excel software every year to stay up-to-date.
  • Split EMI payments as per ownership.
  • Claim tax benefits smartly and legally.

Conclusion

Owning a home is a dream. And saving taxes while doing so? That’s the cherry on top. If you’ve bought a house with a co-owner, you’re eligible for double benefits—but only if you do it right.

With Income Tax Preparation Software All in One in Excel, you don’t need to worry about errors or missing out. It’s your all-in-one tool to sail through tax season with ease.

So, take control of your taxes now. Why do it manually when Excel can do it smartly?

Frequently Asked Questions (FAQs)

  1. Can both co-owners claim ₹2 lakh each on interest exemption?
    Yes, if both are co-borrowers and co-owners and contribute to EMI payments.
  2. Is Income Tax Preparation Software All in One in Excel free?
    Some versions are free, while others may have premium features. Choose as per your needs.
  3. What happens if only one co-owner pays the EMI?
    Only the person paying the EMI can claim tax benefits, even if both own the house.
  4. Does the software work for both old and new tax regimes?
    Yes, it supports calculations for both tax regimes as per Budget 2025-26.
  5. Can the software handle multiple income sources or arrears?
    Yes, it includes options for income from other sources, arrears, and even Form 10E.

16. Real-Life Example of Co-Ownership and Tax Savings

Let’s understand with a simple example.

Imagine Ramesh and Sita, a married couple, jointly buy a home worth ₹60 lakhs. They take a loan of ₹50 lakhs and contribute equally to the EMIs.

  • Their annual interest component is ₹4 lakhs.
  • Since both are co-owners and co-borrowers:
    • Ramesh claims ₹2 lakhs under Section 24(b),
    • Sita also claims ₹2 lakhs under the same section.

This means ₹4 lakhs of income gets tax exemption, just by planning smartly.

Using the Income Tax Preparation Software All in One in Excel, they:

  • Enter their respective income details,
  • Mention the ownership ratio (50-50),
  • Feed in loan repayment values.

Within seconds, the software calculates:

  • Exemption eligibility,
  • Final taxable income,
  • Tax payable or refund.

17. How the Software Handles Ownership Ratio

Ownership doesn’t always have to be 50:50. It could be 60:40, 70:30, etc., depending on how much each person contributes.

The Excel software includes input fields for:

  • Ownership percentage, and
  • Loan repayment share.

It then allocates the correct exemption accordingly, avoiding over-claims that might get flagged during tax assessments.

18. Software Highlights: What's Inside the Excel File?

The Income Tax Preparation Software All in One in Excel is packed with helpful features:

  • Automatic Income Tax Calculation as per Old and New Tax Regime.
  • In-built Salary Structure for Govt. and Non-Govt. employees.
  • Auto-calculation of HRA Exemption U/s 10(13A).
  • Tax Arrears Relief Calculation U/s 89(1) with Form 10E.
  • Generates:
    • Form 16 Part A and B,
    • Salary Statement,
    • Computation Sheet,
    • And more — all in one click.

19. Advantages Over Manual Calculations

Manually calculating tax benefits, especially in co-ownership scenarios, is time-consuming and risky. One small mistake can lead to:

  • Excess tax payment,
  • Notices from the IT Department,
  • Delayed refunds.

With the Excel software:

  • You reduce errors,
  • Save time,
  • Gain peace of mind.

It’s like switching from a hand calculator to a smart assistant!

20. Yearly Updates for Budget Compliance

Every financial year, tax laws evolve. The software is regularly updated to reflect:

  • Latest income tax slabs,
  • Updated deductions,
  • Any new compliance rules introduced in the Budget?

For FY 2025-26, it’s already configured with Budget 2025-26 guidelines, ensuring you're always ahead of the curve.

21. Safe for Beginners and Professionals

Whether you’re:

  • A salaried employee filing your return for the first time,
  • An accountant managing multiple clients,
  • Or an HR professional creating salary sheets,

This Excel-based software is your perfect companion.

Its intuitive layout and step-by-step guides make it usable by anyone — no prior tax knowledge required.

22. Download and Try the Software

Most versions of the software are downloadable directly from https://pranabbanerjee.com, https://apnataxplan.in or https://itaxsoftware.net. Once downloaded:

  • Open it in MS Excel (2010 or above),
  • Enable macros (if required),
  • Start entering your data.

You’ll be surprised how much it can do.

23. Keep Documents Ready for Smooth Filing

To get maximum benefit from co-ownership and the software, keep these ready:

  • Property deed (mentioning co-ownership),
  • Home loan statement,
  • EMI payment proof,
  • PAN and salary slips,
  • Interest certificate from the bank.

Feeding this data into the Excel software ensures accurate results and faster filing.

24. Legal Compliance and Audit-Friendly Reports

This Income Tax Preparation Software All in One in Excel also creates reports that:

  • Match with Form 16,
  • Reflect deductions properly,
  • Stand strong in case of an audit or an IT notice.

You’ll always have proper documentation ready, just like a professional CA would do.

25. Final Thought: Turn Your Tax Time into a Smooth Ride

Let’s face it — tax season can be stressful. But with the right tools, it doesn’t have to be. Co-owning a home offers great tax savings, but only if you plan properly and file correctly.

Thanks to Income Tax Preparation Software All in One in Excel, you no longer have to worry about:

  • Missing deductions,
  • Misfiling returns,
  • Or wasting hours on calculations.

Instead, you gain:
✅ Clarity
✅ Confidence
✅ Control

It’s like having a digital CA on your desktop.

More FAQs

  1. How do I determine the ownership ratio for tax purposes?
    You can check your registered property deed. If unspecified, the ratio is generally based on the EMI payment share.
  2. Can co-owners also claim a deduction for stamp duty and registration charges?
    Yes, under Section 80C, both co-owners can claim it — again, based on contribution.
  3. Is it necessary to file jointly to get co-owner benefits?
    No. You can file separately but declare your share of ownership and loan repayment in your individual return.
  4. Can I use the Excel software to prepare returns for others?
    Yes, professionals and accountants can use it to prepare returns for multiple salaried employees.
  5. Where can I get this Excel software?
    You can find it on trusted tax filing platforms, CA forums, or request access from verified developers online.

Download the Automatic Income Tax Calculator All in One in Excel for Government and Non-Government Employees with Form 10E for the F.Y. 2025-26


📥 Download Excel Tax Software

 

Features of this Excel Calculator:

  • Prepares your Tax Computed Sheet instantly as per Budget 2025.

  • Includes the inbuilt salary structure for both Government and Non-Government Employees.

  • Generates your Automatic Salary Sheet without manual effort.

  • Calculates your H.R.A. Exemption under Section 10(13A)

  • Computes Income Tax Arrears Relief under Section 89(1) with Form 10E.

  • Generates Form 16 Part A and Part B

  • Creates Income Tax Form 16 Part B with accuracy.

Download Automatic Income Tax Preparation Software in Excel All in One with Form 10E for the Government and Non-Government Employees for the F.Y.2025-26Download Automatic Income Tax Calculator All in One for the Government and Non-Government in Excel for the F.Y. 2025-26