To boost the empowerment of woman, several tax concessions and benefits have been provided by the government of India exclusively for woman, making buying-home in wife’s name a profitable deal. Either as sole owner or joint owner, there are several benefits in buying a property in the name of a woman or your wife. Here is why you should by a home in your wife’s name.
Lower Stamp Duty Charges
Partial waiver in the stamp duty is offered by the several states in India, where the property has been registered in the name of a Woman. Approximately 1%-2% can be saved on account of stamp duty. In Delhi and Haryana, Men are required to pay 6% as stamp duty over woman who are required to pay 4% only.
Tax Benefit
An extra deduction of interest up to Rs. 1.5 Lakh each financial year can be claimed by a woman tax payer in case the house is self occupied. With separate sources of income, even if the husband and wife are joint owners in a property; they both can claim tax deductions under Sec 80 C. The amount of tax benefit will depend upon the ownership of individual co-owner. So, buying a home in the name of a wife as a co-owner or sole owner will help you grab some extra share of income tax deduction.
Lower Home Loan Interest Rates
Home Loans for women borrowers are offered at discounted rates by the banks like HDFC, SBI and ICICI. While SBI charges an interest rate of 9.35% from women borrowers, others are required to pay 9.40% for an amount less than 1 crore. The HDFC bank charges 9.40% from women while men pay around 9.45%-9.50% for an amount of 1 crore.
One of the greatest benefits of purchasing a property in wife’s name is that, in case one undergoes some of the financial setback and is liable to repay some debt, the property held in the wife’s name shall not be clubbed to cover the losses.
However, the tax benefits can only be enjoyed in case the wife has a separate source of income. But, in case of any legal dispute against the property, both husband and wife shall be involved as co-owners. So, one should make a decision after inspecting each and every pro and con associated to it.
