Taxation

In order to avail maximum benefit from this initiative you must remember that only registering the property in the name of your wife won’t be enough. As per the provision of domestic tax law in India, when you buy a property and register it in your wife’s name and she did not make any monetary contribution in the purchase of the property then the income earned directly or indirectly from the property would be taxed as income earned by you. You can still solve this issue by proving loan to your wife in exchange of some valuable goods equal to the loan amount. Doing this, the rental income will not be taxable to you.

For financing home loan banks will not consider your wife’s eligibility for applying for home loan if she does not earn any income of her own. "This means that if the husband is the sole earning member in a family, it may be difficult to get the property registered in the name of the wife," explains Panjwani.

Other Tax Benefits: The ways by which you can reduce your tax liability.

In case you suffer any business debt or loss, the house registered in your wife's name will not be attached to cover the loss.

Joint property ownership can be favorable if you and your wife take home loan then each of you can claim tax deduction for the interest paid on loan.

If you already own many assets then registering the house in your wife's name will reduce your wealth tax liability.