Home loan for women vs men: Is there a difference in tax benefits?

The tax benefits on home loans in India generally apply equally to both men and women. However, there are certain situations where women might receive additional benefits. Let’s understand the tax benefits, home loans for women and men, and what tax deductions they might offer.

Tax benefits on home loans - The sections you need to know
 

Under the Income Tax Act, you can claim deductions on both the principal repayment and the interest paid on your home loan. These deductions can reduce your taxable income, potentially saving you a considerable amount of money each year. Here are the sections you need to know about -

Section 80C - This section allows for deductions on the repayment of the principal amount of a home loan. The maximum deduction allowed is ₹1.5 lakh per annum.

Section 24(b) - This section pertains to deductions on interest paid on a home loan. The maximum deduction allowed under this section is₹ 2 lakhs per annum for self-occupied property.

Both of these deductions are available on home loans for women as well as men.

Does a home loan for women provide additional gender-based tax benefits?
 

The Income Tax Act does not explicitly provide different tax benefits for women on a home loan. But there are a few added home loan benefits for ladies -

Lower interest rate - Many banks and financial institutions offer women borrowers lower home loan interest rates. The difference is usually around 0.05% to 0.1% lower than the standard rate. This reduced rate is an incentive to encourage more women to opt for a home loan.

Stamp duty - In some states in India, the stamp duty rates are lower if the property is registered in a woman’s name. This can result in significant savings since stamp duty typically ranges from 4% to 8% of the property value. Women may get a reduction of about 1% to 2% in these states.

Joint home loans: Doubling the benefits
 

When a home loan is taken jointly, both borrowers can claim tax benefits, provided they are co-owners of the property and contributors to the loan repayment.

This arrangement can effectively double the tax benefits, with each borrower eligible to claim up to ₹1.5 lakh under Section 80C and ₹2 lakhs under Section 24(b) for the interest component. Joint home loans are a smart way for couples to maximise their tax savings while building a valuable asset together.

How IDFC FIRST Bank Home Loans help maximise your benefits
 

You can unlock the full potential of IDFC FIRST Bank Home Loans through the following benefits -

Competitive interest rates – With rates starting as low as 8.85%, IDFC FIRST Bank offers some of the most competitive rates in the market, making your home loan more affordable.

Tailor-made solutions – IDFC FIRST Bank provides customised loan options to meet your unique needs, whether you're a first-time homebuyer or investing in property.

Hassle-free documentation – Enjoy a streamlined process with minimal documentation requirements, including basic identity, address, income proofs, and property details.

Flexible tenure options – Manage your finances better with flexible tenure options of up to 30 years, allowing for lower EMIs and easier financial planning.

Get the best out of your home loan
 

The right knowledge about your tax benefits is crucial for effectively managing your finances and maximising savings. Choosing the right home loan is equally important to ensure you get the best terms and benefits. By selecting the right home loan and being aware of the home loan benefits for women, you can add to your financial security and stability.

IDFC FIRST Bank offers competitive rates and additional advantages, making it an excellent choice for women who need a home loan. For more information and to apply for your home loan, visit your nearest IDFC FIRST Bank branch today.