Homebuyers are still figuring out the best way to purchase their properties, in addition to making an educated decision. Whether it’s selecting the perfect funding choice for tax benefits or negotiating directly with the seller to reduce brokerage, no stone is left unturned by Indians. The decision to register the property jointly, with the partner, is one such clever way.
There are many intangible advantages of joint property registration, such as raising the status of women in a patriarchal society, strengthened bonding, enhancing long-term commitment and trust between couples. Not many are, however, aware of the financial benefits.
You can utilize the free services of an online home loan EMI calculator to figure out what amount of monetary benefits you would be entitled to in case of joint home registration.
The budget for the purchasing of property is determined by the eligibility of the loan, which, depending on revenue, has a particular cap. Spouses can opt for a joint home loan in the event of joint registration.
It divides the debt burden between two entities and paves the way for a higher amount of the loan as two separate tax benefits would be taken into account.
- Taxation benefits
From a tax point of view, all co-borrowers who are eligible to demand a tax deduction of Rs 1.50 lakhs for principal repayment under Sec 80C and Rs 2 lakhs for interest payment under Sec 24 can benefit from a joint home loan.
In the case of two or more individuals receiving a joint home loan, each person can receive, on a proportionate basis, tax benefits under the Income Tax Act with respect to the principal and interest paid during the year.
- Lower stamp duty
Some states allow women to own property separately or jointly through lower stamp duty rates by 1 to 2 percent. A woman, for example, has to pay a stamp duty of 4 percent in Delhi and a man has to pay 6 percent of the market value. A woman has to pay 4 percent of the stamp duty in Rajasthan, while a man has to pay 5 percent of the market value. This clearly suggests that you can ultimately save a lot of money simply by choosing joint registration of your property.
- Easier succession later on
Transferring property can be an extremely long and time-consuming process in the case of single ownership. For example, after the death of a resident, his family members eventually discovered that the apartment they lived in was solely owned by the deceased. As a result, they faced tremendous problems as far as the succession procedure is concerned.
Excessive compliance with laws and guidelines was involved in the process of acquiring documents in the name of the successor. Joint property registration is always advisable as the heir is always the partner. After the death of any person, this will avoid unwarranted issues in the future. And this is where a joint home loan comes in handy.
You can visit your nearest PNB Housing branch or utilize their online home loan EMI calculator before choosing any specific home loan plan.