Buying a property in the name of your wife: An investment banker explains why it pays

Buying a house in your wife’s name might be more than just symbolic—it could be a strategic financial decision. In a detailed LinkedIn post, investment banker Sarthak Ahuja outlined five reasons why purchasing property under a woman’s name can save you significant money and offer legal advantages.

First, stamp duty for women is typically 1–2% lower than for men in many Indian states. On a ₹3 crore property, that’s a ₹6 lakh saving right off the bat. Many couples also opt for joint ownership to benefit from split stamp duty rates—saving an additional 1% of the transaction value when 50% is in the wife’s name.

Second, banks often offer lower interest rates—by 0.5% to 1%—for women borrowers. The PMAY (Pradhan Mantri Awas Yojana) scheme also offers interest subsidies to female homebuyers. Over a typical loan tenure, this could mean savings of ₹10 lakh or more.

Third, co-ownership allows both spouses to claim tax benefits. Under Section 80C, both can claim principal repayments, while Section 24(b) allows for dual claims on interest paid—effectively doubling the tax efficiency of the home loan.

Fourth, Ahuja points out a lesser-known legal advantage: if the husband is involved in a business or carries personal liabilities, creditors may not be able to touch the wife's share of the property—provided she is a co-owner and has contributed financially. This makes property in a spouse's name a strategic shield in some legal situations.

But there’s a caveat. If the wife’s name is on the property but she hasn't contributed financially, rental income may be taxed in the husband’s hands under the clubbing provisions of Indian tax law. So, the move needs to be planned carefully.