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Reviewer : Roshani Ballal
Table of Contents
You can either buy a home in your name or you can make your wife a joint owner. But, what you probably did not know is that buying a house solely in the name of your wife can come with several benefits. This article will tell you everything about the positives of doing so. Read on to know more.
You get to enjoy the following benefits if you buy a house in the name of your wife or get her to be a joint owner:
Tax benefits
Discounts on registration charges and stamp duty
Subsidy on interest rates of home loan
1. Tax Benefits of Buying a Home in the Name of Your Wife
If you purchase the property solely in the name of your wife or jointly with her, you can claim additional tax benefits. These amounts can be as high as ₹1.5 Lakhs on the housing loan principal amount paid under Section 80C of the Income Tax Act of 1961 and up to ₹2 Lakhs under Section 24 of the same Act. But, note that the tax deductions can only be claimed if you and your wife are living in that home. If your wife has a separate income source, the total deduction claimed will be as per the home ownership share. If the house has been rented out, your wife will still be able to claim the tax deductions on the home loan principal amount paid.
2. Discount on Stamp Duty Charges for Women
States in India offer up to 3% discount on stamp duty charges for women if a house is purchased in their name. The below table will tell you more about the stamp duty rates applicable for men and women in each state.
3. Discount on Home Loan Interest Rates for Women
Several banks and financial institutions offer a discount of up to 1% on the home loan interest rates if you take a home loan in the name of your wife. The extent of discount will, however, vary from bank to bank; hence, you should check for the same with your lender.
4. Joint Property Ownership
To put it very simply, if the property you own is owned by more than one person, it would be considered to be a case of joint property ownership. The ownership share is usually expressed in terms of percentage. If you are also planning on buying a property jointly with your wife, you will also have to decide the ownership share beforehand.
| State | Stamp Duty Charges for Men | Stamp Duty Charges for Women |
|---|---|---|
Delhi |
6% of the property value |
4% of the property value |
Haryana |
5% of the property value in rural 7% of the property value in urban |
3% of the property value in rural 5% of the property value in urban |
Uttar Pradesh |
7% of the property value |
Rebate of ₹10,000 on overall charges |
Rajasthan |
6% of the property value |
5% of the property value |
Punjab |
7% of the property value |
5% of the property value |
Maharashtra |
5%-6% of the property value |
4%-5% of the property value |
Tamil Nadu |
7% of the property value |
7% of the property value |
Jharkhand |
4% of the property value |
4% of the property value |
West Bengal |
5% of the property value in rural 6% of the property value in urban (Plus 1% if property cost is >₹40 Lakhs) |
Same |
Karnataka |
2% to 5% of the property value |
Same |
Some of the things that you must keep in mind while buying a property in the name of your wife or doing so jointly with her are:
Your wife can only claim the home loan tax benefits for the property if her source of income is genuine
In the event of a legal dispute of the property, you and your wife will both have to be available for legal proceedings as by law, both of you will be involved in the case
In the event of a divorce, the property will be divided as per the ownership share both of you decided upon beforehand, even if she did not make any monetary contribution at the time of purchasing the home
Yes, you can purchase a property in the name of your wife or with her as a co-owner. You can avail several tax benefits, exemptions, and discounts for doing so.
Yes, you can take a house loan in the name of your wife. If you do so, you may even get to enjoy reduced interest rates. Additionally, provided the income source of your wife is separate and genuine, you can avail additional tax benefits for taking a home loan in her name.
Yes, a husband can claim ownership of the property that was purchased in the name of the wife, provided the money that allows him to do so has come from known and genuine sources.
Yes, it is possible for the wife to be on the title deed but not on the home loan documents. But, your wife can only claim tax benefits on the home loan if the loan has been taken in her name or has been availed jointly with her.
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