Buying Property in Wife's Name? Here's How You Can Save Lakhs in Taxes

Buying a house in your wife's name can save you lakhs through stamp duty discounts, home loan interest benefits, income tax benefits, and government scheme advantages. This also increases women's property ownership.

Let's save.!

Buying a house is a major milestone in every family's life. But, in whose name the house should be bought is a matter that has a big impact financially and legally. Looking at recent government announcements and bank offers, buying a house in the wife's name helps the family save lakhs of rupees.

Stamp Duty Discount

In Tamil Nadu, a 1% discount is given on stamp duty when buying property in the name of women. The stamp duty, which is usually up to 7%, will be reduced to 6% if registered in the name of women. If you buy a house worth one crore, you will directly save up to ₹1 lakh. Similarly, lower stamp duty for women is in practice in many states including Delhi, Maharashtra, and Haryana. This results in huge savings in house registration fees.

Home Loan Interest Benefit

• Banks also offer special interest benefits to women.
• In banks like Indian Bank, Axis Bank, SBI, the home loan interest rate for women will be lower by 0.05% – 0.1%.
• For example, when paying a loan of 50 lakhs for 20 years, this small interest rate reduction will help save around Rs 1.5 lakh – Rs 2 lakh.

Additional Income Tax Benefit

• If the property is purchased in the wife's name and the husband is a co-owner, both can avail benefits under sections 80C and 24(b) of the Income Tax Act.
• Deduction up to Rs 1.5 lakh per year on the principal amount.
• Deduction up to Rs 2 lakh per year on home loan interest.
• If the house is rented out, the entire interest paid will be deducted. This will result in benefits of up to several lakhs in income tax.

Additional benefits in government schemes

Under the Pradhan Mantri Awas Yojana (PMAY) scheme, if a house is bought in the name of women, additional financial assistance will be available from the government. This is a great support for small and medium families. Also, experts say that if women own a house, additional benefits may be announced in the future in some states on property tax or maintenance fees.

Legal, Family Benefits

Owning a house in the name of women increases the security of the family. Even if the husband faces unexpected financial problems, the property in the wife's name will legally be her property. This elevates the social status of women and supports the welfare of the family.

Some things to keep in mind

• If the wife does not have an individual income, the income from that property will be taxed in the husband's name.
• Sometimes, if the husband is also added as a joint owner, bank loan approval is easier.
• If you buy a house in the name of women, it is important to carefully plan for future sale documents, inheritance rights, etc.

Buying a house in the wife's name offers many financial and legal benefits. Savings of lakhs are available in various ways like stamp duty discount, interest benefit, income tax benefit, government scheme benefits. At the same time, women's property ownership increases and family security becomes stronger. So, next time you plan to buy a house, registering it in your wife's name would be a wise decision.