We list some of the monetary benefits that women homebuyers in
India can avail of if the property is registered in their
name
With an aim to increase property ownership among women, the
Indian government has put in place several measures to make house purchases
more profitable for them. Listed below are some of the monetary benefits that
women homebuyers in India can avail of if the property is registered in their
name.
Lower
stamp duty for women
Most Indian states charge a lower stamp duty (the charge that
the buyer has to pay, in order to get the property registered in the
government’s records) if the property is registered in the name of a woman. For
example, in the national capital of Delhi, women buyers only pay 4% of the
property value as stamp duty, as compared to 6% payable by men. In Mumbai, too,
women pay only 5% of the deal value as stamp duty, while the rate for men is
6%. States like Jharkhand and Jammu have gone a step ahead, by waiving stamp
duty on property purchases by women. Jharkhand charges a token Re 1 on such
transactions.
In Uttar Pradesh, women
are offered a 1% reduction in stamp duty charges. This reduction, however, is
applicable only up to Rs 10 lakhs, out of the total value of the transaction.
In Himachal Pradesh, there
is a two percentage points difference – 4% for women and 6% for men – in rates,
if a property is registered in the name of a woman. In the case of joint
ownership, the stamp duty will be 5%.
Home loan
interest rates for women
A majority of homebuyers in India rely on housing finance, to
buy properties. While this credit enables consumers to own properties in the
early years of their working life, it also increases the overall cost of the
purchase. Women, however, do not have to spend as much as men, as several banks
offer home loans to
women at lower interest rates. Typically, home loans meant for women are priced
50-100 basis points lower than the average rate. (A 100 basis point makes up
for one percentage point.)
If a woman were to take a home loan from the country’s biggest
lender, State Bank of India (SBI) at present, they would have to pay only 6.80%
interest, if the loan size is up to Rs 30 lakhs. On the other hand, the
effective rate for men is 7%. For a similar loan amount, housing finance company HDFC
currently charges 6.90% from women borrowers. For men, on the other hand, the
interest rate may be higher per annum.
Someone paying an interest of 7% on a loan of Rs 30 lakhs for 20
years, would ultimately pay around Rs 55,95,125. In case the loan is priced at
7.2%, the overall loan liability would be Rs 56,68,915. Even though the
difference might not seem substantial, any saving is better than no savings at
all.
Tax
benefits for women property buyers
It is pertinent to mention here that by merely being a
co-applicant in the home loan application, a wife does not become a co-owner in
the property. Even if she is just a borrower, she would, however, be able to
claim tax deductions on her salaried income.
PMAY
benefits for women
Under its Pradhan Mantri Awas Yojana (PMAY), the government has
made it mandatory that property bought under the scheme, must be registered in
the name of at least one woman in the household. In case a woman is borrowing a
housing loan under the flagship program’s credit-linked subsidy scheme (CLSS),
they also enjoy concessions on interest. Women borrowers from the economically
weaker section (those earning up to Rs 3 lakhs per annum) and low-income group
(LIG) category can avail of an interest subsidy of 6.5% on housing loans of up
to Rs 6 lakhs.
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