Benefits of Buying a House in the Name of Your Wife

✓ Home Loan from ₹2 Lakhs To ₹15 Cr ✓ Multiple Lending Partners ✓ Interest Rates Starting @ 8.25%

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.

Benefits of Buying a Property in the Name of Your Wife

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

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.

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.

 

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

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.

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.

Things to Keep in Mind Before Buying a Property in Your Wife’s Name

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

FAQs on Buying Property in Wife’s Name

  • ✔️Can I buy a property in the name of my wife?

    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.

  • ✔️Can I take a home loan in the name of my wife?

    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.

  • ✔️Can a husband claim ownership of the property bought in wife’s 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.

  • ✔️Can the wife be on title but not on the home loan?

    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.