Indian constitution advocates same parity for both men and women. Somehow it is not practiced in day-to-day life. It is generally observed that till it is necessary, the home or any property is purchased in the name of male members of the family. The central and many state government for women empowerment provide benefits for women property buyers. A peep in as to what is the benefit when a home is bought in wife’s name.

There are several benefits to buying a property in a woman’s name, either as the sole owner or as a joint owner, with governments and banks offering several sops. Aspiring homebuyers can seek certain benefits including tax exemptions if a home is bought in a woman’s name. Such offers can also attract more women buyers to the realty sector. Encouraging women to register assets in their name, also boosts women’s empowerment.

Tax benefits

Experts explain that some of the obvious tax benefits of buying a home in the wife’s name include an extra deduction of interest up to Rs 1.5 lakh every financial year if the house is self-occupied. If a husband and wife are the joint owners of a property and if the wife has a separate source of income, then they can both claim tax deductions individually. The tax benefit will depend on the ownership share of each co-owner.

Discount on stamp duty charges

Several state governments in north India are now offering a partial waiver on stamp duty, for buyers registering properties in a woman’s name – either as a sole owner or as a joint owner.

You can save 1%-2% on stamp duty if the property is in a lady’s name. In Delhi and Haryana, the stamp duty rate is 4% for women, compared to 6% for men. Moreover, if you are undergoing some financial setback and have some debts to repay, the property held in your wife’s name, does not come under the cover for your loss.

Discount on home loan interest rates

Many banks like SBI, ICICI and HDFC Bank, offer discounted rates on home loans for women borrowers. The prevailing interest rates for women borrowers are as mentioned below:

Interest rate for woman borrower vs. men borrowers

Note: For amount less than Rs. 1 Cr.

Things to keep in mind when buying a home in the wife’s name

Experts maintain that it is a good idea to buy a home in the name of one’s wife or in co-ownership. However, the wife can enjoy the tax benefit, only if she has a separate and genuine source of income. Moreover, if there is any legal dispute on the property, then both, the husband and wife will be involved in the case. Therefore, homebuyers should evaluate all possibilities, before making a final decision.