Liability to pay stamp duty !
Anmol
(Querist) 30 August 2016
This query is : Resolved
On a gift deed within blood relation for an immovable property a stamp duty of 5% is to be paid . Who is liable to pay that 5% . The donor or receiver ?
The receiver of the property had no money
and stamp duty was by donor . The case dates back when stamp duty was liable now it is not liable .
(The law now has changed and now there no stamp duty on gift by blood relation)
Raj Kumar Makkad
(Expert) 30 August 2016
Legally donee is liable to pay but this is adjustment between the parties by whom actually to be paid.
What is the issue left when the gift registration has already been complete a long ago and if it has not materialized then why not to take benefit of latest provisions when no stamp duty is to be paid?
Anmol
(Querist) 30 August 2016
its related to IT dept sending a letter to donee to furnish details of , source of money for the value of property gifted , which stands nil as in a gift deed no money is transacted actually , now the IT dept has issues about the amount of stamp duty .
Ms.Usha Kapoor
(Expert) 31 August 2016
Dear Client,
Neither the donor nor the recipient Donee is liable to pay stamp duty as they come within the definition of close blood relatives or specified blood relatives under IT/gift tax law and therefore no stamp duty is payable on a gift deed to be registered.
Rajendra K Goyal
(Expert) 31 August 2016
Reply the IT notice after consultation with your tax consultant.
Raj Kumar Makkad
(Expert) 01 September 2016
It is very difficult to be agree with expert Usha because the stamp duty is required for the registration. If donor and donee both have not to pay then who shall pay it?
The donor in the given case can disclose that the stamp duty was paid by donor himself due to blood relationship and moreover the donee was not having such amount with him to pay.
Ms.Usha Kapoor
(Expert) 01 September 2016
Dear experts,
I'm sorry. State of Maharashtra has abolished stamp duty for gifts made to specified blood relations on lot of public pressure..Read TOI's news item and ET article or news item.I'm providing the link.
http://timesofindia.indiatimes.com/city/mumbai/Maharashtra-waives-stamp-duty-on-transfer-of-flat-or-land-to-heirs/articleshow/46693819.cms
Due to oversight this mistake happened.
Dr J C Vashista
(Expert) 02 September 2016
Stamp duty is a state subject, wherein "few" states like Maharashtra do not charge any stamp duty for registration of gift deed to blood relation.
However, no such exemption is there in Delhi wherein the donor has to bear the expenses.
Submit your reply to IT Notice through a "tax" consultant
