Benefits of Buying a Property in Wife’s Name

Last Updated at: October 23, 2019
8243
Buying a Property in Wife's Name

Introduction

In an effort to increase the number of women who invest in real estate, the government of India has introduced a lot of home loan benefits for women borrowers. The purpose of this feature is to help the reader understand what those advantages are and how they can be leveraged.

With new norms and regulations in place, the government offers several benefits to buy a property in a wife’s name, either as the solitary owner or as a joint owner. Therefore, making it more lucrative and inviting for women buyers to take the plunge in the property market.

If you’re looking for specific legal services related to tax registration or startup business,,
you might want to browse the services below to see how our team of experts that assures you to
run the business smoothly.

Here are some of the advantages available for female property buyers

Cheaper loans

Majorly all leading Indian banks offer home loans at a lower interest rate to women property buyers especially when it is buying a home. For example, the current interest rate for salaried women is 8.60% while for others it is 8.75%.

At a glance, it might seem to b;e having a nominal difference but when the loan amount is high it surely makes a huge impact. There are some additional rules catering to these interest amounts and hence it’s best to get the details from the bank before availing the loan.

As of 10th May 2019, here are some general home loan details which should be taken into consideration:

Interest rate 8.65% onwards
Maximum loan amount Up to 90% of property value
Processing fees Up to 1% of the loan amount or Rs. 10,000 whichever is lower
Loan tenure Up to 30 years
Lowest EMI per lakh Rs. 780 for 30 years
Prepayment charges Nil charges for floating rates loans

Below mentioned are some bank home loan rates:

Bank Home loan interest rates Home loan interest rates for women borrowers
SBI 8.75% 8.85-8.95%
HDFC 8.75% 8.80-9.30%
ICICI 9.05% 9.10%
Axis Bank 8.90% 8.85%
Canara Bank 8.75% 8.70%
Kotak Mahindra 8.90% 8.90%

Please note that these home loans rates are not final and are subject to change.

Some key features on a home loan are:

    • Eligibility: Loan is available for both salaried and self-employed borrowers within the age group of 18 and 70 years.
    • Security: Mortgage of a home if you are planning to purchase, renovate or construct.
    • Loan amount: In the range of Rs. 1 Lakh to 15 Cr.
    • Loan to property value ratio: Varies from 65% to 90%
    • Loan tenure: It can range from 5 to 30 years
    • Interest rates: Home loan Interest rates start from 8.65% and there are special rates for women borrowers.
    • Lowest EMI: Lowest EMI of Rs. 780 per lakh.
    • Other charges: Legal charges, technical charges, etc.
    • Documents required: Address proof, Identity proof, Income documents, property documents

Get legal advice from experts

Stamp Duty Concession

State governments in many regions of India offer partial stamp duty waiver to women property buyers or to the combined registration when one of them is a woman. Professional property consultants like Vakilsearch can help you know the exact concession which they offer at the time of property registration.

For example, let’s take a look at the variation in stamp duty for some regions:

State Stamp Duty Rate Stamp Duty Rate for Women
Rajasthan 5% 4%
Haryana 6% 4%
Delhi 6% 4%
Punjab 8% 4%

The same benefit can be also be availed while gifting the property to the spouse. Though, there are some circumstances when it is not possible to register the property in your wife’s name; here Vakilsearch suggests you apply for joint registration. Several states even offer a low discount rate of 1% in such scenarios. Moreover, both husband and wife can also tax benefits on a home loan.

Tax exemptions and Rebates

When a house if purchased on your wife’s name, it is essential for the home loan to also be in her name. This is usually a clear instruction from the banking regulations which also offers a deduction towards interest up to Rs. 1.5 lakh per year. Also, if the property bought is being rented out, then the total interest paid towards the home loan can be claimed as a deduction by her.

Taxation

The property is purchased at your wife’s name although if she cannot contribute to purchase financially, then the rental income from the property will be treated as the husband’s income and will be taxed accordingly.

The other option is such a scenario is to show that the husband has gifted the money to his wife to buy the property. Moreover, reducing his wealth tax liability.

“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense paid for in full, and managed with reasonable care, it is about the safe investment in the world.” ~ Franklin Roosevelt

Conclusion

There are various benefits for buying a house on your wife’s name and is considered as one of the most financially smart moves. So go ahead and happy home searching!

In conclusion, there are several paybacks of taking a home loan in the wife’s name or for any female borrowers. Some of the benefits women accrue are: the loans are cheaper, the interest rate is different, they get a concession on stamp duty, and they are offered tax exemptions and rebates.

Frequently Asked Questions

Who has to file taxes in India

An individual who claims relief under the section 90 or 90A or deductions under section 91 has to file taxes in India. Learn More about Income Tax filing

Who is eligible for ESI?

The ESI scheme is used in all the factories and other organisation whose employeers monthly wage do not exceed Rs.21,000. More info on ESI registration

Is Fssai license mandatory?

FSSAI Registration is compulsory for all the individuals who are engaged in food business. It is necessary for every businesses to print that number on the product package. More information on FSSAI


Who gives ISO certification?

A certification body or an accredited registrar grants the ISO certification and not an ISO certified organization. These are independent of ISO and are recognized internationally. More on ISO Certification


What are the payments on which tax is deducted at source?

TDS was introduced by the government to collect tax from the very income source. TDS is applicable on salaries, rent payments, commission payments, interest payments by bank and others. Details on TDS Return Filing


How to register for trademark online

With U.S. Patent and Trademark Office(USPTO), you can fill the application and submit it. You can also do it online through Trademark Electronic Application System(TEAS). Details on Trademark Registration

What is the criteria for MSME?

As per the MSMED (Micro, Small & Medium Enterprises Development) Act implemented in 2006, MSMEs are classified into two classes such as Manufacturing Enterprises and Service Enterprises. Learn more about SSI/ MSME Registration

Benefits of Buying a Property in Wife’s Name

8243

Introduction

In an effort to increase the number of women who invest in real estate, the government of India has introduced a lot of home loan benefits for women borrowers. The purpose of this feature is to help the reader understand what those advantages are and how they can be leveraged.

With new norms and regulations in place, the government offers several benefits to buy a property in a wife’s name, either as the solitary owner or as a joint owner. Therefore, making it more lucrative and inviting for women buyers to take the plunge in the property market.

If you’re looking for specific legal services related to tax registration or startup business,,
you might want to browse the services below to see how our team of experts that assures you to
run the business smoothly.

Here are some of the advantages available for female property buyers

Cheaper loans

Majorly all leading Indian banks offer home loans at a lower interest rate to women property buyers especially when it is buying a home. For example, the current interest rate for salaried women is 8.60% while for others it is 8.75%.

At a glance, it might seem to b;e having a nominal difference but when the loan amount is high it surely makes a huge impact. There are some additional rules catering to these interest amounts and hence it’s best to get the details from the bank before availing the loan.

As of 10th May 2019, here are some general home loan details which should be taken into consideration:

Interest rate 8.65% onwards
Maximum loan amount Up to 90% of property value
Processing fees Up to 1% of the loan amount or Rs. 10,000 whichever is lower
Loan tenure Up to 30 years
Lowest EMI per lakh Rs. 780 for 30 years
Prepayment charges Nil charges for floating rates loans

Below mentioned are some bank home loan rates:

Bank Home loan interest rates Home loan interest rates for women borrowers
SBI 8.75% 8.85-8.95%
HDFC 8.75% 8.80-9.30%
ICICI 9.05% 9.10%
Axis Bank 8.90% 8.85%
Canara Bank 8.75% 8.70%
Kotak Mahindra 8.90% 8.90%

Please note that these home loans rates are not final and are subject to change.

Some key features on a home loan are:

    • Eligibility: Loan is available for both salaried and self-employed borrowers within the age group of 18 and 70 years.
    • Security: Mortgage of a home if you are planning to purchase, renovate or construct.
    • Loan amount: In the range of Rs. 1 Lakh to 15 Cr.
    • Loan to property value ratio: Varies from 65% to 90%
    • Loan tenure: It can range from 5 to 30 years
    • Interest rates: Home loan Interest rates start from 8.65% and there are special rates for women borrowers.
    • Lowest EMI: Lowest EMI of Rs. 780 per lakh.
    • Other charges: Legal charges, technical charges, etc.
    • Documents required: Address proof, Identity proof, Income documents, property documents

Get legal advice from experts

Stamp Duty Concession

State governments in many regions of India offer partial stamp duty waiver to women property buyers or to the combined registration when one of them is a woman. Professional property consultants like Vakilsearch can help you know the exact concession which they offer at the time of property registration.

For example, let’s take a look at the variation in stamp duty for some regions:

State Stamp Duty Rate Stamp Duty Rate for Women
Rajasthan 5% 4%
Haryana 6% 4%
Delhi 6% 4%
Punjab 8% 4%

The same benefit can be also be availed while gifting the property to the spouse. Though, there are some circumstances when it is not possible to register the property in your wife’s name; here Vakilsearch suggests you apply for joint registration. Several states even offer a low discount rate of 1% in such scenarios. Moreover, both husband and wife can also tax benefits on a home loan.

Tax exemptions and Rebates

When a house if purchased on your wife’s name, it is essential for the home loan to also be in her name. This is usually a clear instruction from the banking regulations which also offers a deduction towards interest up to Rs. 1.5 lakh per year. Also, if the property bought is being rented out, then the total interest paid towards the home loan can be claimed as a deduction by her.

Taxation

The property is purchased at your wife’s name although if she cannot contribute to purchase financially, then the rental income from the property will be treated as the husband’s income and will be taxed accordingly.

The other option is such a scenario is to show that the husband has gifted the money to his wife to buy the property. Moreover, reducing his wealth tax liability.

“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense paid for in full, and managed with reasonable care, it is about the safe investment in the world.” ~ Franklin Roosevelt

Conclusion

There are various benefits for buying a house on your wife’s name and is considered as one of the most financially smart moves. So go ahead and happy home searching!

In conclusion, there are several paybacks of taking a home loan in the wife’s name or for any female borrowers. Some of the benefits women accrue are: the loans are cheaper, the interest rate is different, they get a concession on stamp duty, and they are offered tax exemptions and rebates.

Frequently Asked Questions

Who has to file taxes in India

An individual who claims relief under the section 90 or 90A or deductions under section 91 has to file taxes in India. Learn More about Income Tax filing

Who is eligible for ESI?

The ESI scheme is used in all the factories and other organisation whose employeers monthly wage do not exceed Rs.21,000. More info on ESI registration

Is Fssai license mandatory?

FSSAI Registration is compulsory for all the individuals who are engaged in food business. It is necessary for every businesses to print that number on the product package. More information on FSSAI


Who gives ISO certification?

A certification body or an accredited registrar grants the ISO certification and not an ISO certified organization. These are independent of ISO and are recognized internationally. More on ISO Certification


What are the payments on which tax is deducted at source?

TDS was introduced by the government to collect tax from the very income source. TDS is applicable on salaries, rent payments, commission payments, interest payments by bank and others. Details on TDS Return Filing


How to register for trademark online

With U.S. Patent and Trademark Office(USPTO), you can fill the application and submit it. You can also do it online through Trademark Electronic Application System(TEAS). Details on Trademark Registration

What is the criteria for MSME?

As per the MSMED (Micro, Small & Medium Enterprises Development) Act implemented in 2006, MSMEs are classified into two classes such as Manufacturing Enterprises and Service Enterprises. Learn more about SSI/ MSME Registration

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