What Documents are Required for a Home Loan Tax Deduction?

The documents required to claim a home loan tax deduction include an interest certificate, ownership proof, and income proof.

Who is Eligible to Claim a Tax Exemption on a Home Loan?

Any individual, whether an Indian resident or NRI, who is the owner/ co-owner of a resident property and has taken a home loan in their name, can claim tax benefits on it, subject to having a taxable income in the country.

Can my Spouse Claim an Income Tax Deduction If We Buy a House Jointly?

Yes, you and your spouse can claim deductions separately up to INR 3,50,000 each in a financial year, thereby doubling the tax benefit. However, for claiming tax deduction, your spouse should be a co-owner of the property.

NRI Income Tax & Compliance

Tax Deductions on Home Loan Repayment for NRIs

By Pankaj Shaw |Last Updated: February 9, 2026

Tax Deductions on Home Loan Repayment for NRIs

For many NRIs residing outside India, owning a property back home is an emotional and financial goal. It showcases a solid investment for the future and a connection to their roots. Considering this, often through home loans, they invest in Indian property. However, unlike residents, the income tax deductions on home loan repayments for NRIs are significantly different.

Further, under section 80C, they can claim a deduction of up to INR 1,50,000 on principal repayment. Additionally, under section 24(b), they can claim a tax deduction of up to INR 2,00,000 on interest payments.

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Frequently Asked Questions

Yes, NRIs can claim tax benefits if they purchase property in joint ownership with a resident Indian, provided both the owners are contributing towards the home loan. Additionally, on the loan agreement, both have their names. Further, based on their property share and repayment contribution, each co-owner can individually claim tax deductions on home loan repayments.

There is no restriction on the number of properties an NRI can invest in. However, under various sections of the Income Tax Act, tax benefits like principal repayments and interest deductions are limited. Considering this, the interest on let-out properties is deductible fully, for tax purposes, only one property will be considered "self-occupied." Therefore, deemed let-out and taxed according to that.

If an NRI sells the property within 5 years of purchase, the deductions that were claimed previously under section 80C on principal repayment are reversed. Additionally, the total deducted amount in past years gets added back to the income of the NRI in the year of sale and becomes taxable. However, the deductions provided under section 24(b) are not reversed.

Individuals can claim a deduction of up to INR 2,00,000 on the paid home loan interest and up to INR 1,50,000 on the principal repayment. Therefore, you can claim up to INR 3,50,000 as a tax deduction in a financial year on a home loan.

Yes, you can claim tax benefits of up to INR 1,50,000 per financial year on the principal repayment on a housing loan.

Tax Deductions on Home Loan Repayment for NRIs

Frequently Asked Questions

Can NRIs Claim Tax Benefits if They Purchase Property in Joint Ownership with a Resident Indian?

Is there any Limit on the Number of Properties an NRI Can Invest in to Claim Tax Benefits in India?

What Happens to the Tax Deductions if the NRI Sells the Property Within 5 Years of Purchase?

What is the Maximum Amount of Tax Deductible on a Home Loan?

Can I Claim Tax Benefits on the Principal Repaid on a Housing Loan?

Tax Deductions on Home Loan Repayment for NRIs

Frequently Asked Questions

Can NRIs Claim Tax Benefits if They Purchase Property in Joint Ownership with a Resident Indian?

Is there any Limit on the Number of Properties an NRI Can Invest in to Claim Tax Benefits in India?

What Happens to the Tax Deductions if the NRI Sells the Property Within 5 Years of Purchase?

What is the Maximum Amount of Tax Deductible on a Home Loan?

Can I Claim Tax Benefits on the Principal Repaid on a Housing Loan?