Adding another owner (as co-owner) to your property can be done through..
Sale Deed : You can include your Spouse’s name in the new sale deed mentioning the ratio or portion of the ownership and get it registered. The stamp duty is typically in the range of 5-12.5% of the market value of the property (varies in different states), while the registration charge is about 1%.
Gift Deed : You can also share the ownership by gifting it to someone. In this case, you will need to get a gift deed executed on a stamp paper and register it at the registrar’s office. A gift to a relative is not taxable. However, if you gift the property to a non-relative, the value of the house is treated as income and taxed according to the income tax rules for the relevant year. The stamp duty is generally 2% of the value of the property, along with 1% registration charge.
Co-owning a property can be beneficial for married couples because if one of the partner dies, the surviving spouse automatically becomes the sole owner of the house. So, the transfer of rights becomes easy.
Another advantage is that if the couple has taken a home loan jointly, each person can avail of the tax benefits. Under Section 24 of the Income Tax Act, both partners can claim deductions of up to Rs 1.5 lakh for the interest paid on the home loan. They can also claim tax benefits of up to Rs 1 lakh for the principal amount under Section 80C.
Continue reading other related articles;
- 5 ways of transferring your Real Estate Property
- Joint-home loan – Eligibility rules
- What is Mutation of Property? How to apply for Mutation of Property?
- Occupancy Certificate, Possession Certificate & Completion Certificate – Meaning & Importance