Property buying has mostly been dominated by the males in the society. However, due to mighty tax benefits and rebates the male home buyers are not shying away from registering the property in a female’s name, be it their wife or mother. Moreover, this is attracting women buyers to take the plunge in the property market. This is also attached to several concessions and exemptions which are available only for ladies.
Stamp duty concession
Several northern region state
governments offer partial stamp duty waiver to woman property buyers or to the
joint registration, when one of them is a female. “If the property is registered
in the name of women solely, there is a concession given of about 2 per cent,”
says Rajiv Raj from Credit Vidya, an investment consultancy firm based in
Mumbai. “The stamp duty charges in Delhi are four per cent if the property is
registered solely in the name of a woman and 5 per cent for joint
registration,” added Raj.
Tax exemption and rebate
Several tax benefits and exemption
can be availed if a woman buyer opts for home loan -
- If the property is self occupied
then the deduction towards interest is limited to Rs 1.5 lakh per financial
year.
- If the property is rented out, the
entire interest on home loan can be claimed as deduction against the net rental
value.
- For first time home buyers this
year (April 2013 – March 2014), income tax rebate on interest of home loan up
to Rs 25 lakh is Rs 1 lakh.
Sharing the benefits
The benefit of being a woman does
not end here. Tax rebate can be shared with the husband as well if he is a
co-applicant of the home loan. Not just the exemptions and discounts but several
other featured advantages make property registration at the name of female a
fruitful choice to avail special offers.
For those living on rent
Ladies living on rent can avail
house rent allowance exemption on their taxable income. “If the female tax
payer is living on rent and has any type of income from any source and she does
not own a house, in that situation she enjoys a tax deduction in terms of
section 80GG of the Income-tax Act, 1961 subject to 25 per cent of her income
but restricted to the sum of Rs 2000 per month,” says Subhash Lakhotia, tax and
investment consultant at RN Lakhotia & Associates.
With so many benefits, registering
your house on your mother’s or wife’s name is truly a smart choice.
Surbhi Gupta, Magicbricks.com
Bureau
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