Did You Know?: 3 Secret Benefits of Buying Property in Wife's Name

Ritika

Aspiring home buyers can look for certain benefits including tax exemptions if a home is purchased in the name of his wife. Such offers can also appeal to more women buyers in the realty industry.

Moreover, stimulating women to register assets in their name, also increases women’s empowerment.

There is an ample number of benefits of buying a property in the wife’s name, either making her the sole owner or a joint owner, with governments and banks extending multiple sops.

In this certain blog, you’ll find out the top 3 secret benefits of buying property in your wife’s name. Let’s dive into the post to have exposure to them!

1. Tax Benefit Up to Rs. 1.5 Lakhs

BRICKSNWALL real estate experts state that some of the definite tax benefits of buying a home in the wife’s name comprise an extra deduction of interest up to Rs.1.5 lakhs every fiscal year if the house is self-occupied.

Besides, it’s also applicable if the house is confirmed to be vacant. If a husband and wife are the joint owners of a property and if the wife possesses a part income source, they can both claim tax deductions separately.

The tax benefit will rely on the ownership share of each co-owner.

Moreover, if the property bought is rented out, the wife has the entitlement to claim the total interest payable towards a home loan as a deduction.

2. Relief on Stamp Duty Charges

There are many state governments in north India that are now giving a partial waiver on stamp duty, for home/property buyers registering home or property in the wife’s name (be it as a sole possessor or as a joint owner).

One can save 1-2% on stamp duty if the property is in the wife’s name. For instance, in the national capital state viz. Delhi, the stamp duty charge is 4% for women as contrasted with 6% for men.

Moreover, if you are going through some financial setback and have some debts to pay off, the property bought in your wife’s name, doesn’t come under the cover for your loss.

3. Leverage on Home Loan Interest Rates

The third secret benefit that you can enjoy if you buy a home in your wife's name, is the discount on the home loan interest rate.

There are several banks like SBI, HDFC, ICICI, etc., that offer discounts on home loan interest rates to women as contrasted with men. This differs as per the bank and goes up to around 1%.

Things to Consider While Buying a Home in Wife’s Name

BRICKSNWALL real estate experts state that it’s a virtuous notion to buy a home in the name of a wife or in co-ownership. Even though, the wife can relish the tax advantage, only if she holds a distinct and genuine income source.

In addition to this, if there is any sort of legal dispute on the home/property, in a certain case, both- the husband and the wife will be engaged in the case.

Thus, home buyers must consider assessing all the possibilities prior to finalizing the decision.

The Flip-Side

If there is a case of divorce, the property will then be split as per the wife’s share as stated in the sale deed.

This would take place regardless of the fact that whether the wife has made any sort of monetary contribution to the purchase or loan repayment or not.

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