1.Explain Tax Deduction on Home Loan Interest. What is the limit for the same?

Homeowners can claim deduction of up to Rs.2 lakhs on their home loan interest if the owner or his family reside in the house property. The same treatment applies when the house is vacant. If you have rented out the property, the entire interest on the home loan is allowed as a deduction.

2.Tax Deduction on Principal Repayment: Section 80C

The deduction to claim principal repayment is available for up to Rs. 1,50,000 within the overall limit of Section 80C from FY 2014-15. Check the principal repayment amount with your lender or look at your loan instalment details.

3.How to claim tax deductions on home loans?

The amount of deduction you can claim depends on the ownership share you have on the property.
The home loan must also be in your name. A co-borrower can claim these deductions too.
The home loan deduction can only be claimed from the financial year in which the construction is completed.

4.Tax benefits on home loan for joint owners

The joint owners, who are also co-borrowers of a self occupied house property can claim - deduction on interest on home loan up to Rs 2,00,000 each. And deduction on principal repayments, including deduction for stamp duty and registration charges under section 80C within the overall limit of Rs 1,50,000 for each of the joint owners. These deductions are allowed to be claimed in the same ratio as that of the ownership share in the property.
You may have taken the loan jointly, but unless you are an owner in the property - you are not entitled to the tax benefits. There have been situations where the property is owned by a parent and the parent and child together take up a loan which is paid off only by the child. In such a case the child, who is not a co-owner is devoid of the tax benefits on the home loan.

5.What is a property as per Income Tax Act?

A house property could be your home, an office, a shop, a building or some land attached to the building say a parking lot. The Income Tax Act does not differentiate between a commercial and a residential property. All types of properties are taxed under the head 'income from house property' in the income tax return.
When a property is used for the purpose of business or profession or for carrying out freelancing work - it is taxed under the 'income from business and profession' head. Expenses on its repair and maintenance are allowed as business expenditure.