Until recently, mostly the men in the society were investing in properties in their names.
But off late, huge tax benefits and rebates are the reason why male home buyers have been vastly encouraged to buy properties in the name of the women’ in the family – whether wife, mother, or sister. Women too themselves, have been majorly promoted to enter the world of property investments which has a plethora of exemptions and concessions that are solely reserved for women.
Let’s look at some of the most beneficial advantages for female property buyers in India:
Concession on Stamp Duty
Several state governments in India provide partial concession on stamp duty to women property buyers and in some cases, even in the case of a joint registration where one of the persons is a woman.
Check with the relevant authorities in your area to find the exact figure for the concession being offered on stamp duty.
For instance, in Maharashtra, the stamp duty concession for women is 1%. It is a lot higher in places like Delhi where it is 4% when the property is being registered in the name of a woman, and 5% in the case of a joint registration.
Exemption on Tax
In case a woman who is interested in buying a property is going for a home loan, then some tax exemptions and benefits can be availed.
Suppose that the income source for the man and woman is different, then both of them can avail tax benefits on the installments that they are paying, resulting in two times the tax benefit with zero added investment.
And in case, the property is solely in the name of the woman, then the deduction towards the interest can reach a maximum amount of 2 lacs every financial year.
Reduced Rate of Interest
When one is applying for a home loan before registering a new property, the rate of interest is a big factor to consider. This interest rate has discouraged quite a few people in their decision to buy a home.
Where women are concerned, housing finance institutes set interest rates that are 0-0.5% lower than the standard rates. When it comes to a home loan, this reduction would matter a great deal.
Taking all these factors into consideration, it is significantly beneficial for home-buyers to register their new home in the name of a woman.
Not to forget, a commendable step taken by the Government to empower women in our society.