Many Indian states offer benefits to women property buyers to boost their empowerment, so why is it a good idea to register a property in a woman's name?
Introduction
In an effort to increase the number of women who own real estate (Property) in India, the government of India has introduced a ton of home loan benefits for women home loan borrowers.
In accordance with the objectives of the new norms and regulations in place, the government is offering several benefits for buying property in one’s wife’s name, either as a solitary owner or as a joint owner.
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Advantages Available for Female Property Buyers
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Cheaper loans
All leading Indian banks offer home loans at a lower interest rate to women property buyers especially when it is for buying a home. For instance, if the interest rate for salaried women is around 8.60%, for others it will be around 8.75%.
At a glance, it might seem to be a nominal difference but when the loan amount is high it surely makes a huge impact. Know about the details on Property Registration in India from Experts!
There are also some additional rules catering to these interest amounts and hence it’s best to get the details from the bank before availing of the loan. As of 10th May 2019, here are some general home loan details which should be taken into consideration:
Below mentioned are some bank home loan rates:
| Bank | Interest Rate |
| Union Bank of India Home Loan | 7.40% p.a. |
| Kotak Mahindra Home Loan | 7.50% p.a. |
| Bank of Baroda | 7.45% p.a. |
| SBI Home Loan | 7.55% p.a |
| HDFC Ltd. Home Loan | 7.55% p.a. |
| Axis Bank Home Loan | 7.60% p.a. |
Note that these home loan rates are subject to change.
Some key features on a home loan are:
- Eligibility: Such loan is available for both salaried and self-employed borrowers between 18 and 70 years.
- Security requirement: Mortgage of a home if you are planning to purchase, renovate or construct.
- Loan to property value ratio: Varies from 65% to 90%
- Loan tenure: It can range from 5 to 30 years
- Other charges: Legal charges, technical charges, etc.
- Documents required: Address proof, Identity proof, income documents and property documents
Stamp Duty Concession
State governments in many regions of India offer partial stamp duty waiver to women property buyers or for combined registration when one of the purchasers is a woman. Professional property consultants like Vakilsearch can help you know the same concession they offer at the time of property registration.
For example, let’s take a look at the variation in stamp duty for some regions:
Stamp duty charges for Men v. Women
| State | Rate for Men | Rate for Women |
| Jharkhand | 4% | 4% |
| Delhi | 6% | 4% |
| UP | 7% | Rebate of ₹10,000 on overall charges |
| Rajasthan | 6% | 5% |
| Punjab | 7% | 5% |
| Maharashtra | 5%-6% | 4%-5% |
| Tamil Nadu | 7% | 7% |
| Karnataka | 2% to 5% | Same |
Note that these stamp duty rates are not exhaustive and are subject to change.
This benefit can be availed while gifting the property to the spouse as well. However, if there are some circumstances which do not make it possible for you to register the property in your wife’s name; Vakilsearch experts can help you apply for joint registration.
Tax Exemptions and Rebates
When a house is purchased in your wife’s name, the home loan must also be in her name. This is usually a clear rule according to banking regulations. Doing so provides an extra deduction for interest up to ₹ 1.5 lakh per year. In addition, if the property purchased is rented out, the female spouse can deduct the total interest paid on the home loan.
If a property is purchased in your wife’s name even though she cannot contribute to the 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 in such a scenario is to show that the husband has gifted the money to his wife to buy the property. Thereby, reducing his wealth tax liability.
Conclusion
There are numerous advantages to purchasing a home in your wife’s name, and it is regarded as one of the most financially savvy moves. These advantages range from a variety of advantages, including lower loan rates, lower interest rates, stamp duty exemptions and tax exemptions to rebates.
Good luck with your home search!
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