Several couples are purchasing property jointly for all the beneficial reasons. They are not leaving any stone unturned in choosing the best financial option, but what is the reason behind this?
Joint ownership of a property, not only has tax benefits but also pooling of funds and getting a higher loan sanction are some of the advantages of the acquisition. The financial advantages are more than you can think of. Let’s understand them in detail: –
With the sky-high prices of property in India, buying a house is the one of the most expensive purchases we make in our life. Therefore, most of the couples need to apply for a home loan, and the home loan eligibility depends on the income of the loan applicant. However, in case of a joint home loan, the debt burden can be easily shared between two people and also paves a way for a higher loan as two incomes will be considered.
Co-owners of a property can avail home loan tax benefit on both, the principal as well as the interest paid on the amount taken. Under Section 80C, one can claim a tax deduction of Rs.1,50,000 on the principal amount and under Sector 24, the limit for tax deduction is Rs.2,00,000 on the interest paid on self-occupied property.
However, if the married couple buys a home in India in joint ownership, they both can claim for tax deduction separately. So, together the couple can get a tax deduction of Rs.3 lakhs under Section 80C and Rs.4 lakhs under Section 24. But you cannot claim deduction under Section 80C on an under-construction house.
The government is taking many steps in the direction of women empowerment and therefore encouraging them to own a property jointly or individually because it lowers the stamp duty rate by 1% to 2%, depending on different states. For example, in Delhi the stamp duty rates are: –
- 4% – only for women
- 5% – on joint property
- 6% – only for men
Transfer of a property in case of single ownership is one of the biggest struggles in India because if the owner of the property dies, the process of transferring the property is extremely lengthy and time consuming. The procedure to get the documents in the successor’s name involves excessive conformation to regulations and rules. Nevertheless, all these hassles can be avoided if the property was jointly owned in the first place.
Therefore, joint registration of a property with your better half is always advisable to prevent unwarranted problems in the future and enabling you to live truly carefree!
Visit Home Loan Interest Rates page to know more about the ongoing interest rates on home loans.