Gift deed
sumit vyas
(Querist) 06 May 2012
This query is : Resolved
i want to gift my residential property to my aunty,is it possible?
if yes,what is the procedure ,how long is the procedure,and what are the expenses in doing so,such as stamp duty and all.
pls guide
Adv Archana Deshmukh
(Expert) 06 May 2012
Execute a gift deed in favor of your aunty and get it registered in the sub-registrar's office. Consult a local lawyer who will draft the gift deed. Stamp duty shall be payable on the market value and amount of stamp depends upon the where the property is situated.
R.K Nanda
(Expert) 06 May 2012
I fully agree with the reply of expert
Archana.
adv. rajeev ( rajoo )
(Expert) 06 May 2012
yes you can gift the property to your aunty thru., regd., gift deed. For registration of gift deed refer the statel stmaps act.
sumit vyas
(Querist) 06 May 2012
thanx a lot mam for ur vauable advise
can u pls make me know about %age of stamp duty as i leave in nagpur maharashtra
A V Vishal
(Expert) 06 May 2012
Following are a few legalities that prospective donors and donees should take into account when gifting and/or receiving a gift of immoveable property.
Donor’s perspective Under Section 123 of TPA, gifting of an immoveable property shall be considered as a valid gift only if the transfer of such property is effected by way of an instrument (gift deed) in writing that has been signed by or on behalf of the donor, and attested by at least two witnesses. By corollary, an oral gift of immoveable property or mere delivery of possession of such immoveable property without executing a valid written instrument will not confer any title of ownership in favour of the donee.
The property forming the subject matter of the gift must be clearly specified in the gift deed for such gift to be considered as valid.
Importantly, under Section 17 of the Registration Act, 1908, an instrument of gift of immoveable property must be compulsorily registered with the competent authorities. A gift deed that has not been registered does not pass any title of ownership of the property in favour of the donee.
A donor can only gift his existing property. This means a gift made of future property which is not owned by the donor at the time of execution of the gift deed shall be considered as void.
Once a gift is made by a donor to a donee, he cannot revoke such a gift, either wholly or in part, at his mere will. Even if both parties agree in writing that the gift can be revoked in the future, either wholly or in part, at the mere will of the donor, such gift cannot be revoked and will continue to vest with the donee. However, a donor is legally permitted to revoke his gift if the parties agree to the suspension/revocation of such gift upon the happening of an event (that has been specified in writing in the instrument), the occurrence of which does not depend on the will of the donor.
Donee’s perspective It is the essence of a gift that it should be made as an act of generosity and without consideration. Thus, donees should not pay any consideration in lieu of a gift made in their favour.
A gift of a property is not considered complete unless it has been accepted by the donee or on behalf of the donee. Such acceptance can be express or implied.
Following are the steps that generally make the process of gifting complete: Execution of the gift deed; Donee’s acceptance of the gift; Payment of adequate stamp duty and registration of the property; Delivery/handing over of possession of the property; Applying for mutation of the property in the municipal records by donee in his name, if required.
It is imperative that the above-mentioned procedure is completed during the lifetime of both the donee as well as the donor. Where a gift consists of the donor’s entire property, the donee becomes personally liable for all the debts taken on by, and liabilities of the donor existing when the gift (the property in question) was given.
Donee’s liability under Income Tax Act (ITA), 1961 A gift of an immoveable property received by a donee [an Individual or Hindu Undivided Family (HUF)] from a relative (as defined under ITA) or on the occasion of his/her marriage is not chargeable to tax under ITA. However, if gifts are received by a donee from any person other than his relatives or from other sources except those that are exempted under ITA, such gifts are chargeable to tax under Section 56 of ITA under the head “Income from other sources“.
It is to be noted that even if a gift is received by a donee from any person other than those who are exempted under ITA, if the amount of stamp duty value of such immovable property does not exceed R50,000, then such immovable property will be not be chargeable to tax.
However, if such stamp duty value exceeds R50,000, then it is the stamp duty value of such immovable property that will be chargeable to tax under ITA.
Keeping these pointers and income tax implications in mind when effectuating transfer of property by way of gift can help ensure that such gift is not rendered invalid, thereby protecting the interests the donor and donee
A V Vishal
(Expert) 06 May 2012
Gift (other than a settlement, will or transfer): Same duty as on conveyance.
In case of a gift to spouse, brother, sister, lineal ascendants or descendants @ Rs. 10 for every Rs. 500 or part thereof (approx. 2%) of market value
Shonee Kapoor
(Expert) 07 May 2012
Nothing left to be added.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
sumit vyas
(Querist) 10 May 2012
who is liable to income tax?
donor or donee
