Know the Benefits of Buying a Home in Your Wife’s Name
Sep 28, 2018 Real Estate News
Women now play a significant role in real estate investment whether single or married. Almost 30 per cent of the contribution to real estate investment in urban areas comes from women investors. Several states are now encouraging real estate benefits to women for their empowerment. So if you are planning to buy your new home, consider to buy it in your wife’s name either as a sole owner or as a joint owner. The most common benefit is the tax exemption for women.
Here are the details that you should know before you make your decision of ownership.
- Tax benefits for women: Women get an extra tax benefit with a deduction on interest up to INR 1.5 Lakhs each financial year in case the house is self-occupied. In case of joint ownership, both husband and wife can claim the tax deduction if both have a separate source of income although the benefit will depend on co-ownership.
- Stamp duty charge is less for women: If the property in the name of a woman (sole owner or co-owner) she can save up to 1 to 2 per cent on the stamp duty in several states, such as Delhi, Haryana and Rajasthan. This applies to property gifted to women as well.
- Benefits on home loan interest rate too: Several banks such as ICICI, SBI and HDFC Ltd have discounted rate of interest woman borrowers although it is not a vast difference even 0.05 percent of interest does matter when the loan amount is significant for a long duration. The reason for this benefit could be the belief that women may be fewer defaulters in repayment of the loan.
- If the property is your wife’s name, she is also allowed to deduct the interest rate that is paid against the mortgage loan upon the net rental value in case you decide to rent out their home.
- States like West Bengal have poverty alleviation schemes. In such a scheme, the government allocates plots to households with low income, where women's names are added in the land titles of the plots.
Points to remember
Tax benefits are applicable only if the wife has a separate source of income in case of ownership or co-ownership of the house. In case of any property dispute, both husband and wife will be involved. So, you need to consider all aspects before you consider buying your home.Looking for property portal?
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