Top 4 Benefits of Married Couples Jointly Owning Property

Last Updated at: October 23, 2019
1446
Top 4 benefits of married couples jointly owning a property
Top 4 benefits of married couples jointly owning a property

Be it choosing the best financial option for the tax advantages or dealing with the seller directly to avoid the brokerage, the best way is registering the property jointly with the spouse! Not many people are aware of the financial benefits it holds. So, in this article, we will discuss the major benefits of the married couple jointly owning the property.

Registering a joint property is beneficial provided you register it with your spouse. But not many people know the financial benefits that they can enjoy with the jointly owned property. Here, you will get to know the benefits of owning a property jointly as a married couple. These include tax benefits, stamp duty and affordability.

Tax Benefits

From the taxation perspective, a joint home loan is advantageous to all the co-borrowers who can claim the tax deduction of Rs.1.5 lakh for principal repayment under Sec 80C of Income Tax Act, 1961 and Rs.2 lakh for interest payment under Sec 24 of the Act. In the situation of two or more individuals taking the joint home loan, each of them will have a privilege to enjoy the tax benefits under the Income Tax Act, in respect to the principal and interest paid during the year, on a proportionate basis.

Under section 80C of the act, each joint owner is allowed a deduction of Rs.1,50,000 for principal repayment. They are also allowed to claim deduction on the registration and stamp duty charges that they have paid for, with the total deduction, not more than Rs.1,50,000. Furthermore, they can also apply for the deduction of housing loan interest from the house property income, up to Rs.2,00,000 each. However, the deduction should not be more than the interest. However, tax benefits under Section 80C cannot be claimed by an under construction property.

Stamp Duty and Discounts

Having the joint ownership of the property with wife will reduce the stamp duty rate by 1% to 2%. This is an initiative taken by the government for the sake of women empowerment in taking the ownership of property jointly or as individuals.

Stamp duty rates in Delhi and Rajasthan are 4% for women whereas 6% for men. In Haryana rural areas, it is 4% for women whereas 6% for men. Again in urban areas of Haryana, the stamp duty for women is 6% whereas men have to pay 8%. In the same way, many states have less stamp duty for women compared to men.

Moreover, many banks such as SBI, ICICI, HDFC etc., offer decent discounts on home loan interest rates to women compared to men. This differs from bank to bank and mostly goes up to nearly one per cent. Lower interest always promises a cost-friendly home loan repayment. The lower interest rate will also low down the monthly instalment. The basic rate of discount on home loans for women in India is 0.05%.

Get Expert Advice on Marriage

Affordability

There is no refuting of the fact that property prices have increased in recent times. These days most of the couples apply for home loans jointly because combined higher income generally promises the higher loan sanction amount. This is one of the convenient ways of lessening the loan repayment burden. By this, the pressure to repay the loan is not on a single person but on two people i.e. husband and wife.

Succession

Transfer of the property in the case of single ownership is one of the main struggles in India when the owner of the property dies. As it is single ownership the process of transferring the property will now become extremely lengthy and time-consuming. The procedure to get the documents in the name of successor involves excessive confirmation of rules and regulations.

However, all these hurdles can be evaded if it is a jointly owned property. So, jointly owning the property along with your spouse is always a better option to prevent unwanted problems in the future.

Are you also looking forward to buying a new house? Then, you should definitely go for a jointly owned property along with your spouse to avail all these benefits!

What GST returns have to be furnished by a non-resident taxable assessee?

The non-resident persons should file the GST returns form. They are the business people who do not own any business in this country. The GSTR 5 is filed for imported good, outward supplies, imported services,details of debit and credit. Understand the procedure for GST registration and GST returns here.

Why should I apply before commencing operations?

It is vital to get a PRC (Provisional SSI Registration Certificate) prior to starting your business operations. The PRC will run smoothly and will help you with specific NOCs as well as clearances.More on Income Tax Return Filing.

I made an error in my ITR. Can I revise it?

It is possible to revise the ITR form when there are errors in it. The revised ITR would be substituted with the original ITR.Learn more about ISO Certification.

What is latest ISO standard?

ISO 9001 helps organization to remain more efficient. It is a standard that sets out needs for the quality management system.More info on NGO Registration in india.

When can an NGO be blacklisted?

The NGO can be blacklisted if the funds are utilized for personal interests or if it is not filing its compliance in time.More about Udyog Aadhar Registration.

    SHARE