Legal advice on gifting of residential flat in mumbai.

Mehta (Querist) 29 April 2025 This query is : Resolved
Dear Experts,

I hope this message finds you well.

I am seeking your expert legal opinion regarding the gifting of a residential flat located in Mumbai, Maharashtra. Specifically, I would appreciate your guidance on the following points:

1. Whether gifting a residential flat to a non-family member is legally valid and permissible under the laws applicable in Maharashtra.

2. What are the legal formalities and documentation requirements involved in executing such a gift?

3. Is it mandatory to register the gift deed with the local sub-registrar, and if so, what are the stamp duty and registration charges applicable in Maharashtra?

4. Are there any tax implications or reporting requirements, either for the donor or the recipient, under Indian Income Tax laws?

Your professional advice will be greatly appreciated to ensure compliance with all legal formalities and to safeguard the interests of both parties involved.

Thank you in advance for your valuable time and support.

Warm regards,
Mehta

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Quick Summary

This discussion addresses the legalities of gifting a residential flat in Mumbai, particularly to non-family members. It clarifies that such gifts are valid if a properly executed and registered gift deed is used, governed by the Transfer of Property Act, 1882. Key points covered include the necessity of registration, stamp duty (5% for non-relatives in Maharashtra), and tax implications where gifts exceeding ₹50,000 in stamp duty value are taxable for the recipient. The thread also delves into rectifying an invalid, unregistered transfer of a flat from 1989, suggesting legal recourse via a declaration suit or a complaint under Section 79 of the Maharashtra Co-operative Societies Act if the society fails to act.

T. Kalaiselvan, Advocate (Expert) 29 April 2025
The gifting a residential property to a non-relative in Mumbai is legally valid, provided the gift deed is properly executed and registered. A gift deed is a legally binding document that transfers ownership of property without monetary consideration, and it is governed by the Transfer of Property Act, 1882.
.2 You may have to execute a registered gift deed without receiving any consideration.
3. The gift deed must be registered with the appropriate authorities, typically the Sub-Registrar's office, to ensure legal enforceability and protection against disputes. In Maharashtra, the stamp duty for gifting property to non-relatives is 5% of the property's value.
4. For non-relatives, the gift is taxable if the stamp duty value exceeds ₹50,000 and is considered as income in the hands of the recipient.

Dr. J C Vashista (Expert) 30 April 2025
Yes, the property can be gifted by executing a registered "Gift Deed"

kavksatyanarayana (Expert) 30 April 2025
Yes. A gift deed can be registered to a non-family member. The gift tax is there; for tax details, you may consult a local CA.

Mehta (Querist) 01 May 2025
Thanks to all the experts for their valuable advise I really appreciate. Now if the flat is transferred by the society in Mumbai, Maharashtra on the basis of unregistered transfer deed in June 1989, then what are the practical ways to cancel the transfer deed and rectify the share certificate. Thanks

P. Venu (Expert) 07 May 2025
What do you mean by "Now if the flat is transferred by the society in Mumbai, Maharashtra on the basis of unregistered transfer deed in June 1989, then what are the practical ways to cancel the transfer deed and rectify the share certificate."?

Mehta (Querist) 08 May 2025
Expert Venu, I have mentioned about my issue, my society transferred the flat to the purchaser in June 1989 on the basis of unregistered and unstamped agreement, which is invalid and void, now to rectify the mistake what are the alternatives I should take to get the flat back to my name. This is my issue now I am asking all the experts, how to resolve this issue, if possible out of court and if not then legal way. Thanks

kavksatyanarayana (Expert) 08 May 2025
If your purchaser is alive, he or his legal heirs, if he is not available, can execute a sale deed in your favour, otherwise, a declaration suit may be filed in a court of law.

P. Venu (Expert) 08 May 2025
"my society transferred the flat to the purchaser in June 1989 on the basis of unregistered and unstamped agreement" Where you the purchaser at that time or someone else who in turn had transferred the flat to you. If the latter case, was it through a registered and stamped deed?

Mehta (Querist) 09 May 2025
Expert kavksatyanarayana, thanks for the advise, the purchaser is alive and he has already executed the Notarized Deed of Cancellation on Dec 2018 and Notarized Affidavit Cum Declaration on Nov 2020 both submitted to the society with a request to rectify the earlier records and transfer the flat back into the original owner (seller). But society is not responding since 2018. If the Declaration suite is the only way to get this done? If yes, than kindly recommend an Expert lawyer from Ghatkopar, Mumbai or near to Ghatkopar, Mumbai. Thanks expert

kavksatyanarayana (Expert) 09 May 2025
The notarised deed of Cancellation is not valid. There are several lawyers in Mumbai and choose one of them.

P. Venu (Expert) 10 May 2025
The querist is yet to provide the information as sought. However, it appears that the allotment made by the Society in 1989 has been in terms of the then prevalent norm that the the ownership of the building vests in the Society and not the members. However, it has been held subsequently that the members have right of occupancy which right itself is a specie of the property (Please see Ramesh Himmatlal Shah vs Harsukh Jadhavji Joshi https://indiankanoon.org/doc/618220/).

Admittedly, the querist had purchased the flat through due execution of conveyance deed. As such, in my considered view, his title to the property in the flat cannot be said to be illegal or void.

Dr. J C Vashista (Expert) 11 May 2025
Presumption shall not be appropriate, however, author of the query has adequatly been advised it is right time to close this thread.
In case any other left out question / query the author is advised to consult a local prudent lawyer.

P. Venu (Expert) 11 May 2025
"Presumption shall not be appropriate" How?

Admittedly, experts in LCI has been unable resolve the issue? As such, is it professional to ask the querist to close the thread?

Mehta (Querist) 11 May 2025
Thanks to all the experts for your valuable advice. I close my discussion.

T. Kalaiselvan, Advocate (Expert) 19 May 2025
The querist himself expressed his satisfaction with the replies he received here hence naturally the query stands resolved

Kishor Mehta (Expert) 19 November 2025
With due respect to all :
An unregistered transfer deed is legally invalid for immovable properties in Maharashtra. It was not proper for the CHS to accept this unregistered deed and transfer the flat in the first place. When the basis of the initial transfer is unlawful all subsequent transactions become null and void.

Mehta (Querist) 19 November 2025
“Thank you, Adv. Kishore Mehta. If the society is still not taking any action on the legal notices served—despite the clear points you have mentioned regarding the invalidity of an unregistered transfer deed—I am concerned about how to move forward. I have been raising this issue since 2019 and the society has never given any written response. What would be the appropriate next step now to finally resolve this long-pending matter?”

Kishor Mehta (Expert) 19 November 2025
You should have immediately taken recourse to legal remedies. You should immediately submit complaint under Section 79 of the Maharashtra Co-operative Societies Act, 1960, to the Dy. Registrar of CHS who has jurisdiction over the area where the flat is situated. You should escalate it further to higher authorities in case of no response or unsatisfactory response. Good Luck.

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