March 2018 | Back to all Real Estate Articles
Women employees, especially those pursuing their first job, have a key reason to rejoice. With the promise of a higher take-home pay packet, lower interest rates on home loans for women, reduced stamp duty, and a slew of affordable housing options on offer, there’s more power to the young woman on a home-hunt
It’s every modern woman’s dream to enjoy independence. With prudent planning, she can now own a home. The amendment to the Employees’ Provident Fund & Miscellaneous Provisions Act, 1952, will allow women employees to take home more. This means, while employers’ contribution of 12 per cent will continue, new women employees will not be required to pay 12 per cent of their basic salary for three years as this will be borne by the government.
The government’s Housing for All by 2022 Scheme, which states that women should be either co-owners or sole owners of an affordable house, clearly empowers more women to aim for that dream home more than ever.
The Credit Linked Subsidy Scheme (CLSS) has given the first-time woman home-buyer more benefits. If her annual household income is less than Rs 6 lakh per annum, she is eligible for an interest subsidy of 6.5 per cent on the principal of Rs 6 lakh.
Women borrowers are eligible for tax benefits on home loans. Her home loan repayments can reduce her taxable income upto Rs 3.5 lakh. Eligibility for tax deductions on interest paid on home loans is upto Rs 2 lakh for women. Maximum tax deductions for principal and interest repayments are Rs 1.5 lakh and Rs 2 lakh respectively.
Believe in starting early. If a woman embarks on her career when she’s 22 years with, for example, an average salary of Rs 4.5 lakh/annum, which is the average employee salary in the IT industry, she can opt for a home loan when she is 25-26 years. By this time, her income could be around Rs 6-8 lakh based on her increments. Most banks offer home loans upto 60 times of the net.
For example, if the net pay is Rs 50,000, the employee would be eligible for a home loan of upto Rs 30 lakh. She can look for affordable housing projects that offer homes within this budget.