The deduction or tax benefit for a home loan is available against income from the house property in the hands of the individual as an owner on payment of interest and repayment in proportion to her share of the payments. If you and your husband own the house jointly and the home loan is repaid by each of you, tax benefits could be claimed in the same proportion by both of you, respectively.

The quantum of deduction towards interest paid on home loan would depend upon whether the residential property against which the home loan is availed is a self-occupied property (SOP) or a let out property (LOP) or deemed to be let out (DLOP).

Where the property is an SOP, each one of you can claim deduction towards respective portions of interest paid subject to the cap of `1.5 lakh per financial year (FY). If the property is treated as LOP or DLOP, the entire interest paid by each of you proportionate to the home loan repaid, can be claimed as deduction against the net rental value or the deemed rental value offered to tax.

If the above deduction leads to a loss, this can be set off against salary or other income as per specified tax provisions.

Additionally, each of you can claim deduction towards respective portions of principal repaid to specified lenders subject to an overall cap of `1 lakh under section 80C, irrespective of the property being SOP, LOP or DLOP.

Wealth tax implications will arise on more than one property. The taxable value will be proportionate to your share in the cost of the property.
What are the tax provisions on National Pension System (NPS)?

The tax benefits in respect of contribution to NPS are available to specified employees as defined in section 80CCD.

The employer’s contributions are allowed as deduction to the extent of lower of actual amount contributed by the employer during the FY, or 10 % of the employee’s salary. This contribution is in addition to an overall limit of `1 lakh per FY under section 80C. The employee’s contribution up to 10% of salary or the actual amount, whichever is lower, can be claimed as deduction with in the overall section 80C limit of `1 lakh per FY.

‘Salary’ includes dearness allowance, but excludes all other allowances and perquisites. On withdrawal, the employer’s and the employee’s contribution to the extent on which the deduction was claimed and the accretion earned shall be taxable in the FY of receipt of the accumulations. But the amount used towards purchase of annuity during the FY of withdrawal shall not be taxable in the hands of the employee.