Tranfer of plot title in son's favour

1. Any transfer, other then by succession i.e. to the legal heirs after the death of the owner has to be by a written document which has to be stamped and registered as per the Stamp Act. The property of your mother can be trasnferred to your name by way of Gift deed or a sale transfer deed. the satmp duty on the Gift deed would be lower than that on the sale transfer deed so you can make a gift deed from your mother in favour of yourself.

2. Stamp Duty has to be paid on the market value or agreement value whichever is higher. Hence it is advisable that you put in the same market value as per the Ready Reckoner and pay appropriate stamp duty.

3. There could be a long term capital gains depending on the amount of money she will get. If she would get an amount on which the income tax is nil (then no tax is to be paid) or low, it is advisable that she pays the tax.

4. Your mother does not require a PAN no to execute the deed but she may require one if she has to pay income tax.

Hope this clarifies.

S Jadhav

Thanks Mr Jadhav for your valuable response. Would appreciate small clarification on point no. 3 - If I get the property registered in my favour through Gift Deed without any actual monetary transaction (in favour of mother), would this mean there is no capital gains tax applicable for her ?

Thanks & rgds

Kuldeep