Introduction
With a view to women also acquiring property ownership, the Indian government has taken several measures to make the home-buying more affordable for them. Below are some of the financial benefits that female home buyers in India can get if they register a property in their name. Let’s see that now.
Table of Contents
- Lowest Stamp Duty for Women
- Reduced Stamp Duty for Women
- Home Loan Interest Rates for Women
- Tax Benefits for Female Property Buyers
- Benefits of PMAY for Women
Lowest Stamp Duty for Women
Most Indian states charge a lower stamp duty (the charge that the buyer has to pay to get the property registered in the government’s records) if the property is registered in the name of a woman.
For example, in the national capital of Delhi, women buyers only pay 4% of the property value as stamp duty, as compared to 6% payable by men. States like Jammu have gone a step ahead by waiving stamp duty on property purchases by women.
Reduced Stamp Duty for Women
It’s great to hear that the Maharashtra government is providing a concession of one percentage point for women home buyers. This will bring some relief to women home buyers, as they will now only have to pay 2% of the property value as stamp duty on property registration.
Note that stamp duty has been reduced to 3% in Maharashtra from January 1, 2021, to March 31, 2021. This is a great initiative by the government to promote the real estate sector and encourage more people to invest. in assets.
In Uttar Pradesh, women are given a 1% discount on stamp duty charges. But this discount is in the total transaction value of Rs. 10 lakhs only.
Home Loan Interest Rates for Women
Most home buyers in India rely on housing finance to purchase properties. This credit enables consumers to own it in the early years of their working lives. But it also increases the total cost of the purchase.
But as many banks offer home loans to women at low interest rates, women do not need to spend more than men. Generally, home loans meant for women are 50–100 basis points lower than the average rate. (A 100-basis point consists of one percentage point.)
Tax Benefits for Female Property Buyers
If a person and his wife jointly own a property, she should also be a co-applicant for a home loan. Both husband & wife are exempt from tax on their incomes under Section 80C, Section 24, and Sections 80EE and 80EEA.
It is pertinent to mention here that being a co-applicant in a home loan application does not make the wife a co-owner of the property. Even if she is just a borrower, she can claim tax deductions on her salary income.
Benefits of PMAY for Women
Under the Pradhan Mantri Awas Yojana (PMAY), The government now requires that property purchased under the scheme must be registered in the name of at least one woman in the household. If a woman takes a home loan under the flagship program Credit-Linked Subsidy Scheme (CLSS), they also get subsidies on interest.
Economically Backward Section (earning up to Rs. 3 lakh per annum) and women borrowers belonging to the Low-Income Group (LIG) category receive a 6.5% interest subsidy on home loans up to Rs. 6 lakhs.
Conclusion
By registering property in the name of women, the government has moved forward with the good aim of making women the owners of property. Accordingly, people are also registering the property in the name of women and getting the subsidy. For more information, visit openplot.
Also read: Mumbai Stamp Duty and Registration Charges in 2024