Are you planning to move into a bigger house along with your spouse? Then why not opt for joint ownership of the property. With both spouses increasingly opting to work, many couples register for joint property. And why not? After all, it has its fair share of advantages. With the property prices skyrocketing, especially in metros, you can avail of a higher loan, but joint ownership can also provide you with some additional tax benefits. From better home loan eligibility, double tax benefits, stamp duty benefits for woman homebuyers, and easy succession of the property, here's a quick peek at some of the perks of jointly owning a property.
Loan eligibility and affordability
The property's budget depends on the loan eligibility, which in turn, is based on your income. If you opt for a joint property, your combined income is considered, and you can avail of a higher loan. Yet another advantage is that the burden of principal and interest repayment is reduced. Loan sanctions also get easier as the collateral provided is mutually pledged by both the spouses. This becomes convenient for both spouses as the equated monthly installments (EMI) decrease. Many banks and private lending institutions provide discounts, too, on the interest rate of home loans to the woman as the primary applicant.
Tax benefits for both spouses
A joint home loan has its own tax benefits. Joint owners of a property can avail a tax deduction of Rs. 1,50,000 on the principal amount under Section 80C of the Income Tax Act and Rs 2,00,000 for interest payment under Section 24. A married couple can claim Rs 3,00,000 under Section 80 C and Rs 4,00,000 under Section 24. However, one cannot claim tax benefits under Section 80 for a property that is under construction.
Stamp duty benefits
Holding a joint property allows owners to enjoy certain benefits in stamp duty. The government offers a lower stamp duty rate for women property buyers. This empowers women to have a share in property as joint owners or sole owners. The stamp duty rates get reduced by 1-2 percent when the spouses jointly hold the property. Many states like Delhi, Jharkhand, Haryana, Rajasthan, and Uttar Pradesh have this benefit.
Succession of the property
The process of property transfer is a tedious one in India. If a single person owns the property, transferring the property rights at a later stage becomes a huge struggle. The procedure to get the documents in the successor's name becomes taxing as it requires excessive conformation to rules and regulations. This becomes simplified when couples opt for joint ownership because, in case of an unfortunate incident, the property automatically gets transferred to the living spouse, and they become the successor. This also prevents any unwarranted problems in the future.