Posted on 30th November 2018 Author: Planet Homes
In India, several couples are purchasing properties jointly to avail the financial benefits offered by various banking institutions and banks. Joint possession of a property, not only has tax benefits but it also blends funds and helps in getting a higher loan sanction. The co-owners of the joint property can claim deductions individually on the stamp duty & registration charges, interest and principal repayment amounts.
Applying for a joint home loan as a married couple is more beneficial in India because there are multiple perks provided by banks and government.
There are various financial and economic gains of having a joint-ownership of the property that is purchased. Let us understand some of them below.
1. Easy Home Loans
The real estate prices are soaring sky-high in India. And the dream of purchasing the ‘dream home’ is one of the most expensive investments any individual or married couple makes. Lenders tend to favourably consider home loan applications, where the co-borrower is a close relative, like spouse or parents. The application for joint home loans as a married couple allows the couple to claim a higher loan as two incomes will be considered.
2. Tax Benefits
If married couples jointly buy a home in India, the co-owners of the property can avail home loan tax benefit on both, the principal as well as the interest paid on the amount taken. Individual spouses can claim for a tax deduction, registration charges and stamp duty charges that they have paid for, separately.
3. Lower Stamp Duty Charge
In many Indian states, if the property is registered in the name of a female partner, the stamp duty will be lower. Stamp duty for women is often 1-2% lower than men. Hence it advisable for married couples to buy their home in the name of the wife. The couple can also enjoy stamp duty discounts if the property is registered in the name of the wife.
4. Easy Transfer of property
The procedure for transferring the property is lengthy and time-consuming. The biggest advantage of owning a property jointly is that, in the event of the death of any partner, the other partner won’t have to go through a turmoil of property transfer issues. Due to joint ownership, the property can easily get transferred to surviving spouse’s name.
Therefore, joint registration of a property with your better half is always advisable to prevent unwarranted problems in the future and allowing you to live truly carefree!