Buying a house is a dream for every middle-class family. But do you know that if you buy the house in your wife’s name, you can get special benefits from the government? You also get big discounts on things like tax and stamp duty. This is a smart trick—if you understand it well, you can save and even earn lakhs of rupees every year.
Buying a House in Wife’s Name is a Smart Deal
Many people believe that there is no special benefit in buying a house in the name of a woman, but this is not true. The Government of India gives special benefits to women in property registration to make them financially strong. This is not only a smart financial decision but also a good way to save tax.
How You Can Save Money Every Year
When you register a house in your wife’s name, many state governments give you a discount on stamp duty. Usually, women get 1 to 2 percent less stamp duty compared to men. For example, in Delhi, men have to pay 6 percent stamp duty, but women pay only 4 percent. This means a saving of ₹1 lakh on a house worth ₹50 lakh. States like Uttar Pradesh, Madhya Pradesh, Punjab, and Rajasthan also give similar benefits.
If a home loan is taken for the house, then women can get extra tax exemption. Under Section 80C, they can claim up to ₹1.5 lakh on the loan’s principal amount. Under Section 24, they can get up to ₹2 lakh tax exemption on the interest. If both husband and wife are co-owners and both are paying the loan, then both can claim the tax benefit separately. This helps save even more money every year.
Banks also give home loans to women at a slightly lower interest rate, usually 0.05 percent less. Even though this difference seems small, it can help save lakhs of rupees during a 20-year loan period. For example, if a man gets a loan at 9 percent, a woman may get it at 8.95 percent.
Extra Benefits Under Government Schemes
Under the Pradhan Mantri Awas Yojana (PMAY), families can get an interest subsidy if the property is in the name of a woman or she is a co-owner. Women from economically weaker sections and low-income groups can get a subsidy of up to ₹2.67 lakh under this scheme. But to get this benefit, the house must be in the woman’s name.
In many government housing schemes like PMAY, it is necessary that the woman is either the owner or co-owner of the house. Only then can the family get full benefits from the scheme. This also increases the chances of getting selected under such schemes.
To get all these benefits, make sure the house is registered in your wife’s name. She should apply as the main person for the home loan. While applying for any government scheme, her name must be included in the property documents. To get the stamp duty discount, check the rules of your state on its official website or visit the sub-registrar office.