Women home buyers in India enjoy several benefits that go a long way in empowering them. The government also understands this and has therefore come up with several measures that make home purchases beneficial for them.
Reduced Stamp Duty For Women
It would be worth recounting here that most Indian states levy lower stamp duty if the property is registered in the name of a woman. For an instance, in Delhi women, buyers need to pay a mere 4% of the property value as stamp duty. The menfolk, on the other hand, have to shell out a total of 6% of the property value to get it registered in their name. In Mumbai too the women buyers have to pay only 5% of the entire deal, men, on the other hand, have to pay 6%. In Jharkhand, it would be interesting to note, mere “one rupee” is the token amount charged from women on whose name the property is registered.
Lower Rate Of Interest For Women On Home Loan
A majority of home buyers rely on home loans to arrange for finance to buy their home. However, several banks offer home loans at a lesser interest rate to women. State Bank of India, for example, charges an interest rate of 6.8% from women. However, for men, it is 7%. Needless to say that it is a great help and is a big step towards alluring families to register their homes on the names of female members thereby empowering them.
Women Property Buyers Enjoy Tax Benefits
If the property is owned jointly by a couple, the wife would have to become a co-applicant in the home loan application. This would enable both the husband and the wife to claim tax deductions on their incomes, under Section 80C, Section 24, and Sections 80EE and 80EEA (benefits under the latter two sections are available only to first-time homebuyers).
It must however be remembered that being a co-applicant in the home loan application does not make the wife co-owner of the property. However, she would be able to claim a tax rebate on her salary even if she happens to be a borrower
Women Enjoy PMAY Benefits
Pradhan Mantri Awas Yojana (PMAY) makes it mandatory that property purchased under the scheme must be registered in the name of at least one female member of the family. Women get a concession on the interest rate if they opt for a housing loan under the flagship program’s credit-linked subsidy scheme (CLSS).
Women borrowers belonging to economically weaker sections of the society (income less than Rs. 3 lakhs per annum) and low-income group (LIG), on the other hand, can avail interest subsidy of 6.5% on housing loans up to Rs. 6 lakhs.
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