Secret Benefits of Buying Property in Woman's Name
You may have often heard of new home buyers registering their property in their wives ' names. While this is certainly an act of empowerment, it also comes with many benefits that you can enjoy especially if you are planning to get a home loan. Apart from providing your wife with a valuable asset registered in her name, here are some more advantages of buying the property in a woman's name.
When we seek a home loan, the biggest factor to consider is the rate of interest. If your wife is a working woman, she can avail of a home loan and also enjoy exclusive home loan benefits for women. Most of the banks provide a lesser rate of interest for women borrowers.
For instance, the rate of interest on a home loan for working women can be around 8.55%, while for her male counterparts, it is 8.60%. This lower percentage can also be redeemed if a woman is a co-applicant. Hence, it is very beneficial to those who wish to take a home loan, to do so by registering the property in their wife's name.
Another benefit of buying a property in a woman's name is the tax rebates that women can enjoy. If it is a self-occupied property, an additional deduction of interest summing up to an amount of Rs 1.5 lakh every financial year will be offered for women property owners.
Many parts of India have set a lower stamp duty charge for women property owners as compared to men. While the exact percentage may vary, more and more states are now embracing this idea to empower more women property owners. Delhi, for instance, has set a 7% stamp duty for men and it is about 5% for women.
Some other states are leading the way, with Jharkhand setting an example. Women property buyers will have to pay Re.1, as stamp duty in this state. This can be a great monetary relief for someone who is shouldering the cost of the home, thus making it a good idea to register the property in a woman's name.
These are a few benefits of registering a property in the name of a woman in the family, be it your mother or wife. It is important to understand the finer nuances of buying a property in a woman's name to make the most of this and avoid any financial debacle.
Let's discuss some other important factors that you must keep in mind.
If your wife is a homemaker, registering it in her name can lead to a Benami transaction that can make the entire process quite tricky. So to avoid any complications, it is better to opt for co-ownership in this situation.
If your wife does not have a source of income, she may not be able to get a home loan at all as most banks refuse to provide a loan to an individual without a fixed source of income.
If you both have combined your income to buy the property, then the rental income earned from the property will be taxed separately. However, if the woman is a homemaker and has not contributed monetarily to the purchase, then the rental income is combined with the husband's income and standard taxes apply to the same.
If there is any dispute over the property in the future, the husband is equally accountable even if the property is registered in the name of his spouse.
We hope that the above information has helped you understand more about the home loan benefits, tax benefits on a home loan, stamp duty benefits, etc. that one can enjoy when a property is registered in the name of a woman.