Atul K. Puranik (Sr.Executive - Imports) 21 May 2012

Transfer of property

Sir,

Currently I'm residing at Anand Nagar, Sinhagad Road, Pune. My flat area is 577 Sq.Ft. I've purchased this flat in 2005 at cost of around Rs.5,00,000. I've loan of Rs.4,00,000.00 from Cosmos Bank. I'm regularly paying EMI of Rs.5,000/- p.m. from my pocket. But, due to salary constraints at that time, the home loan was in the name of my elder brother. His account is showing regular deduction from his saving account towards the repayment of the subject loan. Now, he is insisting me to transfer the subject flat on my name. Can you please explain the cheapest way to transfer the above property on my name. Needless to say about my eleder brother concern on this issue. According to my knowledge, the market price of my flat is around Rs.28-30 Lacs, as on date. Whether there is any Gift Deed option is also available for this transaction. Please reply.

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4 Replies

Atul K. Puranik (Sr.Executive - Imports) 22 May 2012

ok i will look

S Jadhav 98336 98330 (Jadhav & Associates) 23 May 2012

Your brother will have to gift you the flat and you have to pay stamp duty on today's market rates.(at reduced rates for gifts to specified relatives )

Vefore transfer you will have to approach the lending bank to provide you a loan for the outstanding amount or whatever amount you can get depending on the eligibiity without which you cannot transfer the flat. They may give you a loan depending on your eligibility and then you can transfer the flat in your name and also repay your own housing loan.

S Jadhav

Atul K. Puranik (Sr.Executive - Imports) 23 May 2012

Sir,

If my brother would like to Gift me a flat, where, currently I'm residing, (Current Market price is Rs.28 Lacs apprx.)

This flat was purchased in 2005. (Housing Loan is in the name of Elder Brother - Rs.4 Lacs approx)

1. What % Stamp Duty, I've to pay

2. Whether this Duty on Current Market Rate of the subject flat

3. Whether there is any Exemption / Specila Duty in case of "Gift Deed" from Brother.

4. Whether Registration Charges and / or any other charges, are applicable for this Gift Deed.

Please reply.

S Jadhav 98336 98330 (Jadhav & Associates) 23 May 2012

As per art 25 of the Bombay Stamp Act, 1958 a gift deed requires a stamp duty of 2% of the market value as on the date of execution i.e in your case it will be the current market value as per the ready reckoner(RR). Please refer to the RR for the market value. The RR value is normally lower than the price at which market transactions take place.

There is no exemption on payment of stamp duty to anyone for gift deed.

Registration charges of 1% are applicable over and above the stamp duty.

S Jadhav