Benefits of Buying a House in the Name of Your Wife
30 Dec 2019
Almost everyone dreams of getting a home, to put down roots and be responsible for their own little corner of the world. When buying a house you require a basic overview. This is especially true if you are purchasing a home for the first time and you aren't quite familiar with the process. However, the process of buying a new home may vary from state to state, depending on the local custom.
A lot of effort goes into finding a suitable house that fulfills the needs of all family members. Since it also involves a large amount, a lot of times all of your life savings, it’s better to be forethoughtful about every step you take when making the buying decision. You can buy a house jointly with your spouse, purchase the house in wife’s name or other women in your family.
If you buy a property in a woman’s name, either as the sole owner or as a joint owner, with governments and banks you can avail of a variety of benefits. Moreover, this is an invitation for women buyers to take the plunge in the property market. Encouraging more and more women to register assets in their name, also boosts women’s empowerment.
The Tax benefits of buying a home in the wife’s name
Some of the tax benefits of buying house in a women’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 home and if the wife has a separate source of income, then they both can claim tax deductions individually.
However, the tax benefit will depend on the ownership share of the co-owner. Women buyers also get a depletion of 1-2% of the property value. Several state governments offer women a discount on stamp duty. This benefit of low stamp duty can still be availed of even when the property is gifted to the spouse.
Let’s have a look at how this benefit is stretched out to women.
It empowers women
The aim is to empower all women regardless of their role and responsibility in society. With more assets in their name, the overall economic status of women in India can improve, which in turn can make them less vulnerable to being exploited. The benefits that woman buyers receive was originally made to encourage women property owners to get assets in their name. This deal applies to all subsequent property purchases. It’s a smart way to save a small percentage in a speculative transaction, making it a good deal.
Joint property ownership
Joint registration is one option you should consider if it’s not possible to buy a property in your wife’s name. Some states, offer a 1% discount on stamp duty in such cases. There are some legal and tax benefits in purchasing a second joint property with your wife. Being a co-owner the wife has the right to claim a deduction of up to Rs 1.5 lakh for the interest paid on a home loan in case of self-occupied property.
In wealth tax, the asset is treated as net wealth in the hands of the person who owns the property. To get the maximum benefit from this incentive, remember that simply registering the house in the name of the wife won’t be enough. The provisions of the domestic tax law in India states that the income earned directly or indirectly by the wife from assets transferred to her will be clubbed with the income of the husband. However, before you decide to buy a house in wife’s name, remember that home loans can also be a deciding factor. Banks typically insist that the property is in the name of the person who is applying for a home loan.
This means that if you buy a house in wife’s name, but she does not contribute monetarily, the rental income from that particular property will be treated as your income and taxed at the applicable rate. It is always a good idea to buy a home in the name of one’s wife or in co-ownership. However, if the wife has a separate source of income she can avail the tax benefits. Moreover, if any legal dispute arises regarding the ownership of the property, then both, the husband and wife, will be involved in the case. Therefore, home buyers should evaluate all possibilities, before taking a final call. If you require financial support when purchasing a home you can always opt for a home loan without blowing up all your personal savings.
With a home loan at Finserv MARKETS, you can purchase the house of your dreams with ease. You can apply for a loan amount of up to Rs 3.5 Crore. If you have a working partner, you also have the option of getting a joint home loan to avail of a higher loan amount. You can avail home loan interest rate of 8.80% onwards with foreclosure charges of 4% plus applicable charges. Finserv MARKETS is an online platform and therefore, no matter where you wish to buy a new home you can avail quick approval for a home loan in the top metropolitan cities of India and meet the financial requirements to fulfill your dream without any worry. The home loan applicants are free to choose their repayment tenure up to 300 months.
Through the Pradhan Mantri Awas Yojna scheme, first-time home loan applicants also get the added benefit of reduced EMI’s and loan interest rates up to 6.93%. What’s more? You also get an insurance cover, in case of an unfortunate incident, you can protect your loved ones from the burden of paying off your home loan with customized insurance plans. If you are confused, read Pradhan mantra awas yojana and avail its benefits to the fullest only at Finserv MARKETS.
The online home loan application process is quite simple and requires minimal paperwork. The loan amount will get disbursed in your account post verification. Home loans at Finserv MARKETS provide complete transparency with no hidden charges, no dubious policies. Their custom made loans make it easier to finance your dream home and meet your specific requirements
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