stamp duty less paid whether title transfers
PrnBCRBant
(Querist) 03 April 2011
This query is : Resolved
One of my client has been gifted by his father in law an immovable property & the same has been registered by the concerned S.R.O. & now has approached to me for a legal opinion for obtaining a loan from the Nationalised bank. However on go through the document I have noticed that the stamp duty on the same has been paid as if gift has been made within the family members. In my view son in law is not within the definition of family. So duty has to be paid as applicable to normal conveyance.
As in this case, actually this has to be claimed by the concerned S.R.O. where it is regd. However, without any remarks it has duly regd. Now my queries are
1) whether a valid title has been passed to the donee or not.
2) whether the donee can create a valid mortgage or charge on the property.
3) if answers are negative then how it can be rectified.
Chanchal Nag Chowdhury
(Expert) 03 April 2011
1. YES. When the SRO has not made out a case for deficit stamp duty & has duly registered the Deed, it is to be taken to have been validly registered & as such, title has duly passed.
2. YES.
3. The question of rectification, if any, will arise if the SRO, for valid reason, calls for addl. stamp duty. In my view the Gift is valid & final & nothing more deeds to be done about the Deed, at least not at this stage.Cross the bridge when it comes.
R.Ramachandran
(Expert) 03 April 2011
What is necessary to determine whether a valid title passed on to the donee or not is not the adequacy of the stamp duty affixed, but the factum of execution of the Gift deed by the donor and the factum of the same having been registered.
As rightly pointed out by Mr. Chanchal, in case any question arises about the short fall in the stamp duty, the same has to be met at the appropriate time and not now.
Kirti Kar Tripathi
(Expert) 04 April 2011
I am also of the same view as above experts have expressed. If doner was having legal title and property was transfered to donee,the question of inadequate stamp duty has no relevance. However, if any question of insufficient stamp duty is raised by the registration authorities in future, the same can be rectified. It is an irregularity not illegality.
Naresh Kudal
(Expert) 04 April 2011
In your case registration of gift deed is complete and your client is a valid owner of concerned property and has all rights for the same.
M V Gupta
(Expert) 05 April 2011
If the lending institution raises ojection on the inadequacy of the stamp duty, you may give them an indemnity against any claims raised by the state for deficit in the stamp duty. In adequacy of the stamp duty in my view should not go to ivalidate the gift which is otherwise valid.
