Gifting house to sister, tax applicable
Dhondiba
(Querist) 01 November 2019
This query is : Resolved
We are from Indore, House purchased 40 years back by my Maternal Uncle (Mama) is gifted to My mother two years back. We are living in same house since purchased i;e 40 years back, Whereas Uncle is living in Maharashtra.
Tow years back Uncle write on a plain paper with signature that they are gifting this house to Sister.
Now as there is no legal value of that paper, We want to properly registered it to registrar office.
Please guide the process and the tax applicable on it, We have not much money, please suggest where less tax to be paid.
Thanks
kavksatyanarayana
(Expert) 01 November 2019
Ji, gifted the property through a white paper is no sanctity. Your uncle (mother's brother) has to execute a Gift deed in favour of his sister (your mother). The stamp duty in favour of family members is 2.5% of stamp duty shall be leviable on the Market value of the property besides registration fee and user charges. consult local senior Document writer or a lawyer having knowledge in drafting documents.
Dr J C Vashista
(Expert) 02 November 2019
Pay appropriate Stamp Duty and Registration charges as applicable in Madhya Pardesh for the gifted property otherwise, it is no gift.
Dhondiba
(Querist) 02 November 2019
Thanks for your valuable feed back.
Stamp duty on market value, or as per the guidelines of government, and is there any depreciation of property value, as it is 50 years old house.
kavksatyanarayana
(Expert) 02 November 2019
as it is state subject inquire in the SRO concerned. so 5% to 20% depreciation may be allowed but not sure.
H.M.Patnaik
(Expert) 04 November 2019
Contact jurisdictional Sub-registrar's office reg. valuation of land & building at prevailing rate only after which fees & stamp duty can be determined as per state rules for execution of suitable Gift Deed by your Uncle.
P. Venu
(Expert) 04 November 2019
The conveyance could be only through a gift deed. In many States, stamp duty payable is only nominal for gift deed in specified cases. You may inquire with the Registration. Most probably, information could be accessed on the internet.
Guest
(Expert) 06 November 2019
You could go for Executing an Settlement Deed instead of Gift Deed for which the Registration Cost is very less in many States
