The Benefits of Buying Property in a Woman’s Name
Many states in India offer huge discounts to women homebuyers. This investment initiative aims to encourage women to venture into real estate and empower them by being an equal part of the investment market. Apart from securing a woman’s future, making her a co-owner helps you reap other benefits also. Here is a look at how it can help you invest better and profitable:
Women are eligible for greater tax rebates. Therefore the tax benefits are more. Women enjoy additional tax benefits on the payable interest of up to 1.5 lakhs- that too every financial year. The condition is the property has to be self-occupied. The tax deduction is applicable if a woman is a joint owner, or earns a salary. The tax relief is applicable on half of the property.
Discount on Interest Rates:
People in India generally take a home loan to buy property, that’s why interest on home loans is a significant factor. Since the home loan rate of interest for a woman is low, taking a property in her name or as a co-owner will reduce the overall interest. Nonetheless, for a woman to qualify for a home loan she should be having an income.
Relaxation on Stamp Duty Charges:
Every state government in India has fixed stamp duty charges on the sale or change of ownership of property. No property transaction is deemed legal without stamp duty charges, this can vary from 4-8% depending on the state. When it comes to women owning a property, many states with an intention of empowerment waive off these charged or reduce the comparative percentage. For Example:
In Delhi, men pay 6% stamp duty while women pay 4%. A reduction in 2% charges has a huge impact on overall property cost.
With all these policies by the government for women, it is a brilliant idea to take property under a woman’s name. The only point to remember is- the woman shall have been earning an income. Rest everything is a green flag.