There are various benefits to buying property in India on wife’s name, either as a joint owner or as the sole owner, with governments and banks offering several sops.
Aspiring homebuyers can seek certain benefits including tax exemptions if a home is bought on a woman’s name. Such offers can also attract more women buyers to the realty sector.
Tax benefits while buying property in India
Some of the prominent tax benefits of buying property in India on wife’s name include an additional deduction of interest up to Rs 1.5 lakh every financial year if the property is self-occupied. In case if a husband and wife are the joint owners of a home and if the wife has a separate source of revenue, then they can both claim tax deductions separately. The tax benefit will depend on the property ownership share of each co-owner.
Discount on stamp duty charges
Several northern region state governments grant partial stamp duty waiver to woman home buyers or to the joint registration when one of them is a woman. You can check with the authorities in your area to know the exact concession that they offer at the time of property registration.
Discount on home loan interest rates and rebate
Many banks like SBI, ICICI, and HDFC Bank, offer discounted rates on home loans for women borrowers. Several tax benefits and exemption can be availed if a woman buyer opts for home loan –
- If the property is self-occupied, then the deduction towards interest is limited to Rs 1.5 lakh through the financial year.
- In case of the property is rented out, the entire interest on the home loan can be claimed as a deduction against the net rental value.
Sharing the benefits
The advantage of being a woman home buyer does not end here. Tax rebate can be shared with the spouse as well if he is a co-applicant of the home loan. Not just the discounts and exemptions but several other featured advantages make property registration at the name of female a fruitful choice to avail special offers.
Benefit for those living on rent
Ladies living on rent can avail house rent allowance exemption on their taxable income. If the female taxpayer is living on rent and has any kind of income from any source and she does not have an own house, in that condition she enjoys a tax deduction regarding section 80GG of the Income-tax Act.
Things to remember during buying property in India on wife’s name
Usually, it is a good concept of buying property in India on wife’s name or in co-ownership. Though, the wife can enjoy the tax benefit, only if she has a separate and reliable source of income. Besides, if there is any legal dispute on the property and land, then both, the husband and wife, will be involved in the matter. Hence, home buyers should evaluate all possibilities, before making a final decision.