While the idea of Buying Property in your wife’s name may sound like an odd concept, it truly is a smart and well calculated decision to make, given the benefits that it provides.
Firstly, in many states such as Punjab, Haryana, Rajasthan and Uttar Pradesh offer a slightly discounted rate on Stamp Duty. Where Delhi offers 6% stamp duty to men, it offers 4% to the women and this is seen as a step towards women empowerment in the country. Stamp duty is the tax that is paid to the state government when an individual invests in a property and has it transferred in their name and ownership. While in many states there stamp duty charges differ from that of men and women, the state of Maharashtra gives equal stamp duty for all genders, i.e., 6% tax is to be paid n purchase of any property.
The idea behind providing these discounts and benefits is to empower women of the society with more assets in her name. Eventually, this concept helps in the economic well-being and sustainability of a country in the long run as well.
Similarly, in the case of the buying property on woman’s name in the house, then the rate of interest levied on a home loan is also lower. While the difference in rates does not look like much, it makes for a significant difference if the loan amount is high. Financial institutions also tend to offer such differential rates on home loans only when a woman is the sole applicant for a property.