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Regarding buying property in India, there are several benefits for female buyers. To encourage women’s empowerment and increase the number of women who own real estate, the government of India has introduced various home loan benefits for women borrowers.

Advantages Available for Female Property Buyers

Cheaper loans Advantage

One of the main advantages for female property buyers is the availability of cheaper loans. Many leading Indian banks offer home loans at a lower interest rate to women, especially for buying a home. For example, the interest rate for salaried women may be around 8.60%, while for others, it may be around 8.75%. While this may seem like a slight difference, it can significantly impact the overall loan amount. As of 10th May 2019, here are some general home loan details which should be taken into consideration:

Below mentioned are some bank home loan rates:

Bank	Interest Rate
Union Bank of India Home Loan	7.40% p.a.
Kotak Mahindra Home Loan	7.50% p.a.
Bank of Baroda	7.45% p.a.
SBI Home Loan	7.55% p.a
HDFC Ltd. Home Loan	7.55% p.a.
Axis Bank Home Loan	7.60% p.a.

Note that these home loan rates are subject to change.

Stamp Duty Concessions

Another benefit for female buyers is the availability of stamp duty concessions. In many regions of India, state governments offer partial stamp duty waivers to women property buyers or for combined registration when one of the purchasers is a woman. This can reduce the overall cost of buying a property.

For example, let’s take a look at the variation in stamp duty for some regions:

Stamp duty charges for Men VS. Women

State	Rate for Men	Rate for Women
Jharkhand	4%	4%
Delhi	6%	4%
UP	7%	Rebate of ₹10,000 on overall charges
Uttarakhand	5%	3.75%
Punjab	7%	5%
Maharashtra	5%-6%	4%-5%
Tamil Nadu	7%	7%
Karnataka	2% to 5%	Same

 

Note that these stamp duty rates are not exhaustive and are subject to change.

If you’re facing any circumstances while registering property in your wife’s name, BDS4LOANS experts can help you apply for joint registration.

Tax Exemptions and Rebates

In addition, there are also tax exemptions and rebates available for female property buyers. The home loan must also be in her name when a house is purchased in a woman’s name. This can provide an extra deduction for interest up to ₹ 1.5 lahks per year. Additionally, the female spouse can deduct the total interest paid on the home loan if the property is rented out.

It is worth noting that if a property is purchased in a woman’s name, she cannot contribute financially. The rental income from the property will be treated as the husband’s income and be taxed accordingly. However, the husband can show that he gifted his wife the money to buy the property, thereby reducing his wealth tax liability.

Final Words

Buying a property in your wife’s name in India can be a financially savvy move, offering a variety of benefits, including lower loan rates, stamp duty exemptions, and tax exemptions. 

January 24, 2023