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Benefits Of Jointly Owned Property



Benefits Of Jointly Owned Property

Property buyers have started working out the best mode of acquiring their immovable assets by delving ahead of informed decision. Whether it is directly dealing with the seller to avoid brokerage or choosing the best financing option for tax benefits, Indian buyers are leaving no stone unturned. One of the best ways to facilitate this is the decision to register the property jointly, with the spouse.


There are many benefits of joint registration of property like better bonding, long-term commitment and trust between spouses, and elevating the status of the wife in a patriarchal society. But a majority of the buyer’s section is unaware of the financial advantages.


Loan eligibility is the major factor that determines the budget to purchase a property, with a specific limit dependency on the income. Whereas, a joint registration allows the spouses to opt for a joint home loan. This provides for sharing of the debt burden between two people, paving the way for a higher loan amount as two incomes will be considered. The candidates falling under the eligibility criteria for a joint home loan could be applicant along with their spouse, siblings or parents.


On the taxation point of view, experts claim that a joint home loan is beneficial to all co-borrowers, who can claim a tax deduction of Rs 2 lakhs for interest payment under Sec 24 and Rs 1.50 lakhs for principal repayment under Sec 80C. Tax benefits can be availed by individuals if two or more people take a joint home loan, this can be done under the Income-tax Act on proportionate basis, in respect of the interest and principal paid during a year


Some of the states provide lower stamp duty rates by 1 to 2% to encourage women to own property individually or jointly. For instance, in Rajasthan a man has to pay 5% as stamp duty whereas a woman has to pay 4% of the market value. Similarly, in Delhi, a man has to pay 6% of the market value whereas the woman has to pay a stamp duty of 4%.


The transfer of property can be time consuming and lengthy in the case of single ownership. As in a recent case in New Delhi, after a local resident passed away, his family members found that the flat they lived in, was solely owned by the deceased. They had to face excessive conformation to regulations and rules in order to get through the procedure of getting the documents in the successor’s name.


After quite a mental stress and hard work put into the extensive paperwork, finally landed the possession with the spouse of the deceased. These hassles could have been avoided if the property was jointly owned. It is always advisable that the joint registration of property should be opted as the spouse is always the successor. As it will prevent the unwarranted problems in the future after the demise of any person.

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