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Joint Co-Ownership of House Property Leads to Super Savings

Joint Co-Ownership of House Property Leads to Super Savings

Women have a distinct advantage over men when it comes to investing in real estate as well as income tax. If you decide to co-own your residence, you can save lots of money via tax deductions and reduced stamp duties. Simply registering your property in joint ownership or exclusively in your wife’s name will be beneficial in the long run.

Section 80C of the Income Tax Act specifies that deductions can be availed on a jointly-owned self-occupied or vacant house. Every financial year, up to Rs. 1.5 lakh in deductions can be availed for the principal that you jointly pay. A further tax deduction of a total of Rs. 2 lakhs can be availed on the interest that is paid.

Additionally, Rs. 50,000 can be claimed on the principal amount by your wife if she is a first-time home investor. These deductions are wholly dependent on the share of ownership but are not applicable if your wife is a homemaker. This will mean savings of up to Rx. 3.5 lakhs if you opt to have joint co-ownership of your home.

In many locations in India, the government has allocated lower stamp duty charges for women investors than those for men. For example, in Haryana, women pay only 4% charges as stamp duty on property, while 6% is applicable for men. Though this is just a nominal 2% difference, there is a marked saving when you translate this into money saved.

Banking services also offer women discounts on home loan interest rates in order to empower more women to own property. Several large banks, such as ICICI, SBI, and HDFC, among others, offer lower rates on home loans for women investors. All these benefits are applicable only if your wife has an income source and cannot be availed of by homemakers.

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