In modern times, an increasing number of couples are choosing joint ownership of property. This also contributes to a higher loan amount and added tax benefits. The following is a list of additional benefits of registering a property jointly.
Jointly Owning a Property
1. Tax Benefits:
Jointly Owning a Property can claim a deduction up to Rs. 1,50,000 on the one-time principal under Section 80C. Section 24 offers the loan amount to a leaseholder a tax reduction of Rs. 2,00,000 on the principal amount. However, allowing married couples to buy jointly means they qualify for two kinds of reductions. They can claim deductions separately. So, under Section 80, a couple can claim a tax deduction of Rs. 3 lacs while under Section 24 they can claim it to Rs. 4 lacs. However, tax benefits under Section 80 cannot be claimed for an under-construction property.
2. Stamp Duty:
The Government of India is taking action to empower women in the ownership of property and as individuals. Stamp duty costs in Delhi for women are 4%, in contrast to men, who pay 6%. In Haryana, it is 4% for women in rural regions, and for men, it is 6%. The stamp duty for women in urban areas is 6, while for men this is 8.
3. Home Loans Discount:
Many Commercial banks and PLIs offer women better interest rate deals on home loans. A lower interest rate will also decrease monthly payments. India’s prevailing discount rate on home loans is 0.05 percent for women.
The transfer of property rights in areas of India can be a lengthy and time-consuming process. This is primarily because the Indian legal processes favor a complete property transfer upon death. These are decreased by keeping property ownership among two parties.
When a couple applies jointly for a home mortgage, they are both given better chances of obtaining financing because they have a more secure source of income. It’s a cost-effective tool that decreases the burden of monthly mortgage repayment. Loan repayment of Jointly Owning a Property becomes simpler and at the time of loan amount sanctioned, two sources of revenue contributions will be taken into account when determining the amount.
Planning a joint home loan can be useful for homeowners seeking to achieve the comforts associated with living on the property.