7 Benefits of Buying a Property in a Woman’s Name

In India, property ownership has traditionally been in the name of the male head of the household. However, in recent years, there has been a growing trend of women taking ownership of properties in their name. 

Women are increasingly becoming financially independent and taking charge of their financial future, and this is reflected in their property ownership decisions as well. Women’s property ownership – whether sole or joint is also an act of women empowerment that the government is encouraging. 

This blog will take you through the benefits of a home registry in a female’s name in India. 

1. Lower Interest Rates

Interest rates on a home loan are a crucial factor when buying a home. This is where women benefit the most. Many banks provide an upfront discount of up to 1% to women applicants. This is because banks and other lending institutions view women as less of a risk, as they are typically seen as more responsible and dependable borrowers. Women may also be eligible for special loan programs designed specifically for women. A woman owner can even avail of benefits of government schemes like Pradhan Mantri Awas Yojana (PMAY) which provide a subsidy of 6.5% for a term of 20 years.

2. Stamp Duty Relaxation

Many states in India have a lower stamp duty for women property owners than men. In Delhi, the stamp duty is 5.5%, while for women buyers, it is 3.5%. Similarly, many other states give up to 2% concessions to women on stamp duty.  Lower stamp duty can be a huge relief to buyers, especially middle-class property owners. Though the difference in stamp duty may seem to be only 1-2%, it can be huge in terms of absolute value.

3. Tax Savings

Women who buy property in their own name are also eligible for tax benefits. If there is a joint ownership, both individuals can avail of tax deductions under Section 80C. An annual joint deduction of up to 1.5 lakh can be claimed on the principal of the home loan. Another joint deduction of up to 2 lakh can be claimed on the interest of the home loan. 

If a woman is a sole owner and a first-time buyer, she can claim an additional deduction of up to 50,000 for the principal of a housing loan under Section 80EE. Additionally, women can also be eligible for other tax benefits, such as capital gain exemptions on the sale of property.

4. Financial Independence

One of the biggest benefits of registering a property in a woman’s name is that a long-term real estate investment in India gives her financial independence. Property ownership is a tangible asset that provides security and stability, and it gives women a sense of empowerment and control over their financial future. This independence can help women make important financial decisions without relying on their spouses or other family members.

5. Better Estate Planning

When women buy property in their own name, it becomes part of their estate and can be passed down to their heirs. The property will pass to the heirs without any need for probate. This makes estate planning easier, as property ownership and distribution are clearly defined. This can help avoid disputes and ensure that the property passes to the intended heirs.

6. Improved Negotiation Power

In the case of women’s property ownership, women have improved negotiating power when it comes to property transactions. They can make decisions about their property without having to rely on their spouse or other family members, and they can negotiate more favourable terms and conditions when buying, selling, or renting their property.

7. Deduction on Rental Income

If you have given a property on rent, you can claim deductions on rental income. Women can have interest deductions on interest paid on loans against rental value over and above the standard 30% deduction on rental income.  

How to Register a Property in a Woman’s Name?

When registering a property in a woman’s name, it is important to know the whole process so that the registration is hassle-free.

Documentation – Ensure that all property-related documents are in place. This includes identity proof, sale deed, property title, and property photos if needed. The documents should be the latest ones.

Application form submission – Schedule a visit to the sub-registrar’s office for submitting the application form for property registration. You can coordinate with your developer for this or book a slot yourself.

Stamp duty & registration charges – Pay the stamp duty and registration fee to the Government before registering the property. The stamp duty and registration rate vary according to the location. However, these rates are lower for women than for men.

Document verification – Once you have applied along with documents and fees, the authorities will verify the submitted documents.

Registration – Once all verifications are complete, the sub-registrar will officially register the property in the woman’s name.

Collect Registration deed -After successful registration, collect the registration deed from the Sub-Registrar’s office. This document serves as legal proof of ownership.

Other Points to Remember When Buying a Property in Women’s Name

– Women should have a source of income to individually claim tax benefits.

– Banks do not provide home loans to a woman with no source of income.

– In case of divorce, the property is divided based on the sale deed. 

– If any legal disputes arise in the future, the husband will be jointly responsible, even if the woman is the owner.

FAQs

Conclusion

In conclusion, there are many benefits to buying property in a woman’s name in India. From lower interest rates to tax benefits and financial independence to better estate planning, women who own property in their own name are better equipped to manage their finances, build their assets, and ensure their financial security. Whether you are a young woman just starting out or an older woman looking to secure your financial future, buying property in your own name is a smart and empowering decision.