Benefits of Buying a House in the Name of Your Wife

You can either buy a home in your name or you can make your wife a joint owner. But, what you probably did not know is that buying a house solely in the name of your wife can come with several benefits. This article will tell you everything about the positives of doing so. Read on to know more.

You get to enjoy the following benefits if you buy a house in the name of your wife or get her to be a joint owner:

• Tax benefits

• Discounts on registration charges and stamp duty

• Subsidy on interest rates of home loan

1. Tax Benefits of Buying a Home in the Name of Your Wife

If you purchase the property solely in the name of your wife or jointly with her, you can claim additional tax benefits. These amounts can be as high as ₹1.5 Lakhs on the housing loan principal amount paid under Section 80C of the Income Tax Act of 1961 and up to ₹2 Lakhs under Section 24 of the same Act. But, note that the tax deductions can only be claimed if you and your wife are living in that home. If your wife has a separate income source, the total deduction claimed will be as per the home ownership share. If the house has been rented out, your wife will still be able to claim the tax deductions on the home loan principal amount paid.

2. Discount on Stamp Duty Charges for Women

States in India offer up to 3% discount on stamp duty charges for women if a house is purchased in their name. The below table will tell you more about the stamp duty rates applicable for men and women in each state.

3. Discount on Home Loan Interest Rates for Women

Several banks and financial institutions offer a discount of up to 1% on the home loan interest rates if you take a home loan in the name of your wife. The extent of discount will, however, vary from bank to bank; hence, you should check for the same with your lender.

4. Joint Property Ownership

To put it very simply, if the property you own is owned by more than one person, it would be considered to be a case of joint property ownership. The ownership share is usually expressed in terms of percentage. If you are also planning on buying a property jointly with your wife, you will also have to decide the ownership share beforehand.

Some of the things that you must keep in mind while buying a property in the name of your wife or doing so jointly with her are:

• Your wife can only claim the home loan tax benefits for the property if her source of income is genuine

• In the event of a legal dispute of the property, you and your wife will both have to be available for legal proceedings as by law, both of you will be involved in the case

• In the event of a divorce, the property will be divided as per the ownership share both of you decided upon beforehand, even if she did not make any monetary contribution at the time of purchasing the home