DELHI: Being a woman property buyer would mean a special concession with reference to registration of the property in the Office of the Sub-Registrar. The stamp duty payment in many states of India is lower for the woman tax payer. This is the single biggest advantage which is available to the woman tax payer.
Hence, if you are a woman tax payer and you are contemplating to buy your new property in your name, then surely the stamp duty charges of your immovable property will go a long way to save some money for you because the stamp duty expenses will be lower.
However, whenever you are contemplating to buy the property in the name of the tax payer, in the first place, please find out from the Office of the Sub-Registrar about the applicable stamp duty charges in case the property is purchased in the name of a woman tax payer.
In certain states of India, there is no restriction nor any concession granted to woman tax payer while buying immovable property. Similarly, in some other places there is also a law that if the property is purchased in the name of the husband and the wife, then no tax concession is permissible because the property has been purchased jointly in the name of husband and the wife.
Finally, please do remember that in advance one should find out the applicable stamp duty charges as are applicable for a woman tax payer and only then take a decision to invest or not to invest in the name of the woman tax payer.
The income-tax exemption for a woman property buyer is exactly the same like an individual male property buyer. It may be noted that a tax payer is entitled to a tax deduction in respect of interest on housing loan up to Rs 1,50,000 per annum for interest payable for availing housing loan. However, this deduction is permissible only when the house is completed.
Likewise, in terms of section 80C yet another tax deduction is permissible on repayment of housing loan and such deduction is limited to maximum of Rs 1 lakh being the maximum amount of tax deduction for payment like repayment of the housing loan coupled with insurance premium as also PF and PPF contribution.
A very special tax deduction for the first time is being made available this financial year for new home buyer because the Government has granted a special tax deduction to them up to Rs 1 lakh towards interest payment specially for new purchase of the house property during the Financial Year 2013-14.
This deduction is by way of the provisions contained in section 80EE of the Income-tax Act, 1961 which provides for maximum of Rs 1 lakh rupees deduction for interest on loan if you buy your first home by 31st March 2014.
It may also be noted that the benefit under section 80EE can be availed only when the value of the first house does not exceed Rs 40 lakh and that the loan taken for the new house does not exceed Rs 25 lakh.
The female co-owner of the house property will be independently eligible for all tax benefits as mentioned above exactly in tune with the benefits which are available to her husband.
However, for this purpose the one most important point which should be taken into consideration is that the married lady when buying a property and when interested to take all the tax benefits independently in her name, then she should ensure that the payment required for purchasing the property is made out with her own funds and that the husband does not buy such property in the name of the wife out of his own money.
However, the married lady can receive loan from her husband with reasonable rate of interest but she should always avoid receiving the gift from her husband. Otherwise, the provisions relating to clubbing of income would become applicable.
If the female tax payer is living on rent and has any type of any income from any source and she does not own a house, in that situation she enjoys a tax deduction in terms of section 80GG of the Income-tax Act, 1961 subject to 25 per cent of her income but restricted to the sum of Rs 2,000 per month.
No other special type of tax benefit on property tax is available to the female tax payer under the income-tax law. However, like any other individual tax payer a female tax payer also is entitled to complete wealth-tax exemption in respect of one property purchased by her.