Stamp duty for gift deed of funds from father to daughter
Querist :
Anonymous
(Querist) 21 April 2024
This query is : Resolved
Stamp duty for gift of fund transfer by bank from father to daughter. Is stamp duty 1% applicable for movable property also. Is there any maximum cap for transfer. Amount transferred is Rs 50 Lac.
Isaac Gabriel
(Expert) 21 April 2024
It differs from state to state.You can verify with the registry concerned.
Querist :
Anonymous
(Querist) 21 April 2024
Thank you for the answer. State is TAMIL NADU. I Would like to know if gift of movable property (fund transfer) is also charged with same stamp duty rate%as immovable property.
T. Kalaiselvan, Advocate
(Expert) 21 April 2024
Gifts from specified relatives are exempted, regardless of the amount received. These relatives are spouse, father, mother, brother and sister
Querist :
Anonymous
(Querist) 21 April 2024
Thanks for the reply. Yes there is no tax on gift from relatives. My question is on the Stamp paper charges for gift deed in TN for gift amount received from parents. This is needed to support source of funds to transfer balance in NRO a/c to overseas.
kavksatyanarayana
(Expert) 21 April 2024
The gift deed is not mandatory to register. Once the movable asset is delivered to and accepted by the donee, gifting is considered to be completed.
T. Kalaiselvan, Advocate
(Expert) 21 April 2024
There's no necessity for reducing the gift of money to relatives to writing.
Even if it is executed by a deed, the unregistered gift deed for transfer of money is recognised as legally valid even for income tax purposes.
SIVARAMAPRASAD KAPPAGANTU
(Expert) 22 April 2024
In your subsequent clarification, you mentioned
"This is needed to support the source of funds to transfer the balance in NRO a/c overseas".
Please elaborate on this point, as FEMA regulations also are likely to be attracted.
Querist :
Anonymous
(Querist) 22 April 2024
Thank you all . This is transfer of money from nro to overseas a/c . Source of funds being monetary gifts from parents and interest tax free bonds credited in nro a/c invested by parents in daughters name. To transfer bank had asked for Form 15CA and 15CB. Auditor advised that as funds are not taxable no need for form15CB . Bank asked for Gift deed and bank stmts for proof of source of funds. As per the above explanations , understand that monetary gift and movable property (bonds)from relatives is exempted from stamp duty and registration. So a deed of stamp paper of Rs100 will do.
T. Kalaiselvan, Advocate
(Expert) 22 April 2024
A deed executed on a plain paper to this effect will also serve as a gift deed.
The bank cannot insist the deed to be prepared on a non judicial stamp paper alone, because of the fact that a mere declaration by the donor declaring that the amount transferred by the donor in the capacity of a parent to the child will neither attract the tax nor there is any provision in law to execute the deed on a stamp paper or to pay any stamp duty for this purpose.
Therefore you can conveniently execute a gift deed on a plaint paper too and ask the bank o show under which law or rule that they demand the execution of this deed to be made on a non judicial stamp paper.
