Benefits of buying a house in the wife’s name

Benefits of buying a house in the wife’s name

by AMIT SETHI, Housing.com

 With many Indian states offering benefits for women property buyers to boost  their  empowerment,  we examine why it makes financial sense to register a property in a woman’s name

There are many benefits to buying a property in a woman’s name, either as the sole owner or as a joint owner, with governments and banks offering many sops.

“Aspiring house/ flat buyers can seek certain benefits including  tax exemptions, if a home is bought in a woman’s name. Such offers can also attract more women buyers to the real estate sector,” points out Mr.  Ashok Mohanani, CMD, Ekta World.

Encouraging women to register assets in their name, also boosts women’s empowerment, he adds.

Income Tax benefits..!

Experts explain that some of the obvious income tax benefits of buying a home in the wife’s name, include an extra deduction of interest up to Rs. 1.5 lakh every financial year, if the house is self-occupied.

If a husband and wife are the joint owners of a property and if the wife has a separate source of income, then they can both claim tax deductions individually. The income tax benefit will depend on the ownership share of each co-owner. They also get up to Rs. 2 lakh every financial year for repaying interest.

Discount on stamp duty charges..!

Many states in north India are now offering a partial waiver on stamp duty, for buyers registering properties in a woman’s name – either as a sole owner or as a joint owner.

“You can save 1% to 2% on stamp duty, if the property is in a women’s name. In Delhi and Haryana, the stamp duty rate is 4% for women, compared to 6% for men. Moreover, if you are undergoing some financial setback and have some debts to repay, the property held in your wife’s name, does not come under the cover for your loss,” points out Mr. Sushil Raheja, CEO,  Raheja Homes Builders & Developers.

Stamp duty charges for Women Vs Men

State/UT	For Women	For Men
Delhi	4%	6%
Haryana	3% to 6%	up to 7%
Rajasthan	4%*	5%

* As 1% rebate over normal rate.

Discount on housing loan interest rates..

Many banks like ICICI, HDFC Bank, SBI offer discounted rates on home loans for women borrowers. The prevailing interest rates for women borrowers are as mentioned below:

Interest rate for woman borrower Vs others

Bank	Interest for Women borrower	Interest Rate for men
SBI	9.35%	9.40%
ICICI	9.40%	9.45%
HDFC Bank	9.40%	9.45% to 10.45%

Note: For amount < Rs 1 Cr

Things to keep in mind when buying a house in the wife’s name

Experts maintain that it is a good idea to buy a home in the name of one’s wife or in co-ownership. However, the wife can enjoy the tax benefit, only if she has a separate and genuine source of income.

Moreover, if there is any legal dispute on the property, then both, the husband and wife, will be involved in the case. Therefore, home buyers should evaluate all possibilities, before making a final decision.

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