Pradhan Mantri Awas Yojana (PMAY)
The Government implemented Pradhan Mantri Awas Yojana (PMAY) scheme by Respected Narendra Modi Sir. It had provided interest subsidies like when the women turn homeowners; the incentives are increased. If you buy a home in your wife's name, you'll be able to save money. If you don't want to do this, you can apply for a joint home loan and share repayment obligations as the co-owners. Tax benefits, Discounts on registration charges and stamp duty, subsidy on interest rates of home loans are the benefits of buying property in a women's name/ female family member. Gaining from tax savings, enjoying lower home loan interest rates and paying reduced stamp duty charges are the three good reasons to buy a home in a wife's name.
Gain from tax savings
By creating joint home ownership, tax deductions can be claimed by husband and wife under section 80C from taxable income. The deduction amount depends on how you (husband and wife) decide on the ownership share. Upto 1.5 lakh are claimed in the year by section 80C for the principal, which you repay on your home loan jointly. For the interest repaid on your home loan, both can claim a deduction of about two lakhs. If your wife is a first-time homebuyer, additionally, she can claim an amount upto Rs. 50,000 under section 80EE, she repays on housing loan for principle. So now, you have to decide whether to buy the property jointly or keep it in her name only. You've to decide all these looking at home loan tax benefits
Pay reduced stamp duty charges.
Housing loans do not cover stamp duty charges because while buying, stamp duty costs are an essential part of registration. The Government has approved some notable concessions to women on stamp duty charges. You pay a stamp duty rate of about 4%, but if your wife buys a home in her name, she spends less than you, which is 2%. While looking at this stamp duty rate percentage, you may find it very minute, but it'll be a significant saving for you during the property valuation. So for, eg. For property worth Rs. You pay at least 50% more stamp duty with eighty lakhs than your wife.
Low home loan interest
Under Pradhan Mantri Awas Yojana (PMAY) on home loan interest, you'll be able to enjoy a subsidy of about 6.5% for the long term of 20 years. Eligibility terms are given on the site; you can learn and understand them. Either your wife can take a loan in her name, or you can apply for the loan jointly. Various lenders give loans to the women at lowest interest rates. One familiar with providing loans to women at low-interest rates is Bajaj Finserv which offers Home loans at lower interest rates.
Can I buy property in my wife's name?
There are several tax benefits and exemptions, including stamp duty discounts for registering property in the name of the wife. Several benefits, including tax exemptions, are sought if the home is bought in the wife/woman's name. But such kind of offers attracts women buyers to the realty sector. Not only women but men believe it in the name of their wives.
Can the husband claim property bought in the wife's name?
Extra interest deduction happens when you buy a home in your wife's name. It deducts interest upto 1.5 lakh in every financial year ( if the house is self-occupied). If the wife is earning and has a separate source of income, then, individually, the husband and wife can claim tax deductions. Only when husband and wife are joint owners of the property. The conclusion is applicable if the house is empty or vacant. The ownership share of each owner will decide the tax benefit.
Can I claim the tax benefit if I buy a home in my wife's name?
If you ask about claiming tax benefits by buying a home in my wife's name, then it is not possible. Because you cannot claim tax benefits if the property is in your wife's name, but if you're the joint owner ( husband and wife), then you can claim tax.
Can I claim tax exemption for a property in my mother's name for which I am paying complete EMI?
Tax benefits will not be claimed if you buy property in your mother's name. Even EMI will be paid by you only; No tax exemption benefit is found. You can't claim breaks unless you co-own the property if your parents own property for which you pay EMIs.
There are some things you need to keep in mind before taking a house loan:
Claiming tax deductions seems invalid if your wife is a housewife. If your wife has separate income, you can avail of tax benefits and deductions.
If the house is registered in the wife's name, proof should be provided for the wife's financial contribution.
You'll be taxed in case of joint ownership according to the gain added to both of your incomes.
Now it's totally upon you to decide whether to make a joint application ( Husband and wife's) or only of your wife. In various states of India, a 3% discount is offered to women. Below are the following states ( some states) and their stamp duty charges for men & women: