Yes, separate deductions can be claimed provided the co-owner has a different source of income. Both co-owners can claim deduction under Section 80C up to Rs.1.50 lakh. Both co-owners can also claim deductions up to Rs.2 lakh on the interest paid on the loan. If the house is rented out, there is no restriction on the interest deduction and both can individually claim deductions based on the ratio of possession of the flat.

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