Owning a home is a common desire. However, the expenses involved in purchasing a home, such as registration costs, stamp duty, and property tax, can be pretty high. Financial experts suggest buying the house in the wife’s name to reduce these costs.
The Indian government is committed to promoting women’s participation in various fields and provides significant concessions to women, including the purchase of a house.
These concessions, such as discounts on property tax payments, make buying a house in a woman’s name financially advantageous.
Women are prioritized in lending and are offered lower interest rates on home loans than men. Many banks and housing finance companies provide special schemes and lower interest rates for women applicants.
When a husband applies for a home loan in his wife’s name, he may benefit from a lower interest rate, potentially saving money. Some banks even offer a discount of up to 1% to female applicants, making it easier for women to obtain loans.
In many Indian states, women pay less stamp duty than men when purchasing a house. For instance, men in Delhi may pay 6% stamp duty, while women spend only 4%. Similarly, in Uttar Pradesh, men may pay 7% stamp duty, whereas women pay 5%.
Moreover, women who buy and reside in a house receive additional tax deductions. They can avail of a tax deduction of up to Rs.1.5 lakh per annum on the annual interest paid on the loan for purchasing a house, with tax benefits available under Section 80C. This further enhances the financial benefits of buying a house in a woman’s name.