In addition to settling on an enlightened choice, property buyers are also working out the best method of obtaining their immovable resources and assets. Whether it’s picking the best financing choice for tax benefits or specifically managing the vendor to maintain a strategic distance from business, Indians are investigating every possibility. One such brilliant way is the choice to enroll the property together, with the companion. There are impalpable advantages of joint enlistment of property like elevating the status of the wife in a man-centric society, better holding, long-haul responsibility, and trust between spouses.
Affordability- With the sky-high prices of property in India, buying a house is 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.
Tax benefits – 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 the self-occupied property.
Stamp duty- 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
Succession- 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 process to get the contract in the beneficiary 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.