There are many states in India that offer benefits when you buy a home in your wife’s name. It is done primarily to help boost the empowerment of women. You can buy the house in your wife’s name either as a joint owner or a sole owner. Does it really make financial sense to buy a property in your wife’s name?
If a home or a residential property is bought in your wife’s name, then the aspiring home buyers can get benefits. One such benefit is the tax exemption when a residential property is bought in a wife’s name. Ashok Mohanani, CMD, Ekta World, due to such offers, women buyers are increasing in number in the realty sector. He said, buying home in women’s name encourages women to buy properties in their name and also boosts empowerment of the women.
Benefits Related To Tax
According to experts, there are tax benefits that one can enjoy if he buys the home in his wife’s name. If the house is self occupied, one can enjoy an extra deduction of interest up to Rs 1.5 lakh every financial year. In case, if both husband and wife are joint owners of the house, and the wife’s source of income is separate, then both of them can claim tax deductions on an individual basis however, the ownership share of both husband and wife will decide the tax benefit.
Get Discount On Stamp Duty Charges
If you are registering the house in your wife’s name either as a sole or joint owner, there are many states in north India which are giving a waiver on stamp duty. If the house in a woman’s name, you can get a waiver of 1 to 2 percent on stamp duty. The rate of the stamp duty is 4 percent for women and that of men is 6 percent in Delhi. In case, if you have financial setback and have many debts to pay, in that case the property registered under your wife’s name cannot be used for the repayment of the debts.
.If the borrowers are women, many banks like ICICI, SBI and HDFC Bank will give discounted rates on home loans.
It is indeed a good idea to buy a residential property in the name of your wife. However, it should be kept in mind the tax benefits can be enjoyed by the wife if she a separate source of income. In case of any legal dispute, then both the spouses will be involved in the dispute. Hence, before making the final decision, aspiring buyers should evaluate all possibilities.