Buying property in wife's name can save on Stamp Duty. Rates are often lower for women. E.g., Delhi: 4% for women, 6% for men. Haryana: 3% (rural)/5% (urban) for women, 5% (rural)/7% (urban) for men. Rajasthan: 5% for women, 6% for men.
Banks offer lower interest rates on home loans for women. Examples: SBI: 6.90% - 7.95% for women, ICICI: 8.10% for women, HDFC: 8.50% for women. (Rates as of April 2022-2023)
Women as sole owners can enjoy a ₹2 lakh deduction annually on home loan payment. Co-ownership allows both spouses to claim deductions proportionate to their ownership share.
1. If the husband is self-employed and has incurred a debt or loss in business, then the property if registered in the wife’s name, cannot be attached to cover the losses
2. Making your wife the co-owner of the property, also known as ‘joint ownership’ is beneficial if both the partners have an independent source of income, as both can individually claim exemption in tax for the interest paid on home loan
3. If the husband owns some other assets too, registering property in the wife’s name will reduce his wealth tax liability