Benefits of buying a home in the wife’s name are enough to tilt your decision towards registration of the property in her name. The reasons are not only the financial benefits that many states in India offer but also it helps provide social security, and works for the empowerment of the women.
Why it is important that the house you buy preferably be registered in your wife’s name? The right answers are emotional, social and financial, all three. Naming her as the rightful owner or a joint owner enhances her trust in family and emotionally gives her a sense of belonging. Socially, it would be a supportive gesture for woman empowerment. Financially, it would be a great decision for saving on stamp duty, home loan interest rates, and tax exemptions.
Women empowerment reflects in various housing schemes, in resale or ready to move property in Delhi/NCR there is 2% less stamp duty for women. In Delhi and Haryana, for women, the stamp duty on house registry is 4% in place of 6% for men. This 2% calculated on the total value of the house amounts to a substantial sum. Therefore, buy property in wife’s name to secure substantial savings.
Experts opinion advocates for registration of property in wife’s name or joint ownership with husband. But for her tax exemption benefits, she can avail that benefit only if she has her own earning with all genuine support documents to prove that. In the case of property dispute both co-owners will be involved and responsible. These two major points should be kept in mind before taking a decision in this regard.
There is a benefit in shape of deduction in home loan interest rates in every financial year when the house is occupied by the owners. The women on their own genuine income can have a benefit up to 1.5 lac every financial year. The couple can claim tax deductions individually, on basis of their ownership of the property.
There are benefits on exemption in interest rates for home loan for women up to an amount of maximum 1 crore. The nationalized banks and private banks normally give 0.05% benefit in the interest rates for women borrowers. This may vary from bank to bank.
Regarding additional tax and related benefits for women, if the liability of husband increases through debt or loss in business, the property of his wife can’t be attached to cover the loss. Also, if the husband has many assets, to reduce his wealth tax liability he can transfer property in the wife’s name. In nutshell, whether you choose ready to move flats in Gurgaon or purchase property in Delhi, the joint ownership is beneficial if both can avail and claim tax deductions on interest paid on home loan.