Benefits of buying a house in the
wife’s name
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
|
|
4%
|
6%
|
|
|
3% to 6%
|
up to 7%
|
|
|
4%*
|
5%
|
* As 1% rebate over
normal rate.
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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