Financial benefits for woman homeowners explained.

Benefits of buying a property in a woman's name

Buying property in a woman’s name has become quite advantageous in recent times. The Government of India, a few states, and banks have joined hands in celebrating ‘woman empowerment’ to help women establish their right as equals in society. The benefits vary from state to state and bank to bank, either as the sole owner or joint owner. The discounts, when added up, justify financial prudence to register a property in a woman’s name.

Let’s look at the benefits:

Related: What are the property rights in India for women?

1. Discount on stamp duty

In many states, women enjoy additional stamp duty discounts over men, but the extent varies from state to state. Here’s a breakup of the stamp duty charges for men and women by some states:

Benefits of buying a property in a woman's name

Related: An expert guide on how the price of a house is determined

2. Home loan benefits

Both private and nationalised banks offer lower interest rates for listing properties in a woman’s name. The interest rates vary across banks, but discounts are around 1% additionally for a woman owner.

Benefits of buying a property in a woman's name

Related: Here's why a woman should be the primary applicant for a home loan

3. Tax benefits 

Tax deductions of Rs 1.5 lakh per financial year are provided if the property is owned entirely by a woman and is self-occupied. A woman can claim these tax benefits on property bought with her known sources of income. A husband and wife can both claim tax deductions separately if a property is jointly owned and if both have a known source of income. In this case, the share of ownership will determine the extent of tax benefit for the couple.

Related: Planning to share a property? Here are some pros and cons

Points to remember

  • For joint ownership, the husband should note that in the event of a divorce, the property will be divided based on the articulations on the sale deed. If the wife has not contributed to the property at the time of purchase, she would still be considered the sole owner. However, the husband can claim a share, provided the source of funds at the time of purchasing the property are known and were legal.
  • Any woman with a work experience of 3 years or more is eligible for home loans from 30 lakh to 3.5 crore. She needs to be an Indian citizen between 23 to 58 years of age. A woman can get upto 30 years for repayment.
  • If the wife is a homemaker and the property is listed solely in her name, it would be treated as an asset. To avoid complications of being declared a Benami asset, it is advised that the couple jointly own the property. However, if the woman has a legal source of income, all the benefits can be applied.
  • Banks will not provide a home loan if the woman is a homemaker. Home loans are approved only if there is a known source of income.
  • In the case of joint ownership, the rental income will be taxed separately for the husband and wife. If the wife is a homemaker, standard taxes will be applicable considering the income of the husband only.
  • If there are legal implications on the property where the wife is the sole owner, the husband will be jointly responsible.

Last words

The ownership of property in the name of a woman affords plenty of financial advantages, whether she is married or single. If the woman is an earning member, she enjoys all the benefits; but if she is not, she can still claim some of the benefits at the time of purchase, such as the discount offered on stamp duty. As a society, we must encourage the empowerment of women, and the government and banks are ensuring just that.