To encourage women in the ownership of property, Government of India is offering many incentives. In India the empowerment of Women is on a high rise, of course, there are some financial advantages of registering property in the name of a woman. Apart from impressing your wife and you’re in-laws registering property in your wife’s name has several other benefits. Either you can register the property as a sole owner directly on woman’s name or as a joint owner. Let us understand the tax benefits when you register on your wife’s name.
Concessions on Stamp Duty:
There is a concession of about 2 percent in some states if the property is registered on the name of women. Typically, registration charges are 4% for women and 6% for men in states such as Delhi and Haryana. For an amount of Rs. 50 Lakh, you can save Rs. 1 Lakh during the registration if you register it on your spouse.
Claiming Tax Exemptions and Rebates:
If a woman opts for the Home Loan, the tax benefits and exemption can be well availed.
The tax deduction towards interest is limited to Rs 1.5 lakh per financial year if the property is self-occupied.
The full amount related to interest on Home Loan can be claimed as a deduction against the net rental value if the property is given on rent.
Sharing Benefits – The Tax rebate can also be shared with the spouse and with the co-applicant of the Home Loan. Apart from discounts and exemptions, several other benefits can be well availed through special offers from time to time. These depends on the state in which you are residing and the bank in which you took the loan.
Availing Discounts on Home Loan Interest Rates:
Many leading banks in the Indian States provide low interest for women who opt for Home Loan. There are also other options, for instance, if a woman has her own source of income, buying a property in her name is a great idea.
For instance, If the husband incurs any losses and debts in his business, the property that is registered in the wife’s name cannot be touched or attached to cover losses or debts. In the same instance, If the husband owns many assets in the house which is already registered in his spouse’s name, there will be a reduction in the husband’s wealth tax liability. Moreover, if the wife is a co-owner she can claim a deduction on the interest of up to 1.5 lakh per annum.
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