Buying a home is a costly affair and hence most people wait for years to buy their home. Not only the cost of the house, but they have to spend lakhs in completing various other formalities ranging from tax. You may not be prepared for these financial expenses. In this situation, the best solution is to buy a house in your wife's name. Husband and wife are two sides of the same coin. In such a situation, if the house is bought in the name of the wife, then both of them get benefit from it.
In India, women are given additional discounts when buying a home, which makes it easier for couples to save some of their extra money. So, today in this article we are telling you what are the benefits you can get by buying a house in the name of your wife-
Get tax benefit on buying a house
If you buy a house jointly with or in the name of your wife, you can claim additional tax benefits. In this way, you can get an exemption from ₹ 1.5 lakh to ₹ 2 lakh annually. You can claim it under section 80C of the Income Tax Act of 1961. However, keep in mind that the tax exemption can be claimed only if you and your spouse are living in the house. If your wife has a separate source of income, then the total deduction claimed will be according to her share of ownership of the house. Even if the house is given out on rent, the wife can claim a tax deduction on the home loan principal amount repaid.
You can get an exemption in the stamp duty charge
In many states of India, one of the advantages of buying a house in the name of the wife is that it can give you additional exemption in stamp duty charges. If a property is in the name of the wife, then you can save one to two percent in stamp duty charges. However, here you should also keep in mind that stamp duty charges differ from state to state. In some states, the stamp duty charges are the same for both men and women. But in most states, the wife is exempted from this. For example, in Delhi, the stamp duty charge for men is 6 per cent, while for women the stamp duty charge is 4 per cent. Apart from Delhi, states like UP, Punjab, Haryana and Rajasthan give additional exemptions to the wife.
Additional discount on home loan interest
If you are buying a house for yourself, then you will need a loan. In this situation, buying a house in the name of the wife can be beneficial. Many banks offer up to 1 percent discount on home loan interest rates for women as compared to men. However, keep in mind that this discount may differ from bank to bank. Also, whenever a home loan is applied for, the bank checks the CIBIL score of the wife as well as the husband. If the husband's CIBIL score is low, then the chances of loan rejection increase.
Image Credit – freepik
DISCLAIMER
Your skin and body are as different as you are. We endeavour to bring you correct, safe and expert-verified information through our articles and social media handles, but still, you must consult your doctor before trying any home remedy, hack or fitness tip.
