Legal advice on gifting of residential flat in mumbai.
Mehta
(Querist) 29 April 2025
This query is : Resolved
Dear Experts,
I hope this message finds you well.
I am seeking your expert legal opinion regarding the gifting of a residential flat located in Mumbai, Maharashtra. Specifically, I would appreciate your guidance on the following points:
1. Whether gifting a residential flat to a non-family member is legally valid and permissible under the laws applicable in Maharashtra.
2. What are the legal formalities and documentation requirements involved in executing such a gift?
3. Is it mandatory to register the gift deed with the local sub-registrar, and if so, what are the stamp duty and registration charges applicable in Maharashtra?
4. Are there any tax implications or reporting requirements, either for the donor or the recipient, under Indian Income Tax laws?
Your professional advice will be greatly appreciated to ensure compliance with all legal formalities and to safeguard the interests of both parties involved.
Thank you in advance for your valuable time and support.
Warm regards,
Mehta
T. Kalaiselvan, Advocate
(Expert) 29 April 2025
The gifting a residential property to a non-relative in Mumbai is legally valid, provided the gift deed is properly executed and registered. A gift deed is a legally binding document that transfers ownership of property without monetary consideration, and it is governed by the Transfer of Property Act, 1882.
.2 You may have to execute a registered gift deed without receiving any consideration.
3. The gift deed must be registered with the appropriate authorities, typically the Sub-Registrar's office, to ensure legal enforceability and protection against disputes. In Maharashtra, the stamp duty for gifting property to non-relatives is 5% of the property's value.
4. For non-relatives, the gift is taxable if the stamp duty value exceeds ₹50,000 and is considered as income in the hands of the recipient.
