Gift deed to a grand daughter

Satish (Querist) 27 February 2022 This query is : Resolved
Dear All,

When i approached a Document Writer regarding transferring my father-in-law's self-acquired property to my daughter as a gift deed, he said that we have to pay 6% as it falls into 'others'. I was not convinced though. Since my daughter's surname is different to my in-law's surname it falls into 'other' categories, he claimed.

I believe that we have to pay less stamp duty as she is a blood relative. The property is located in Telangana.

Do maternal grandchildren qualify for the 'blood-related' category of a Gift Deed? Please suggest me.

Your help is greatly appreciated.

Satish

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Quick Summary

This discussion clarifies stamp duty rates for gift deeds in Telangana, specifically concerning a granddaughter. Initially, a document writer suggested a 6% rate, categorising the granddaughter as 'other' due to a different surname. However, it was confirmed that under the Telangana Stamp Act and Section 56(2) of the Income Tax Act, a 'relative' includes lineal ascendants and descendants. Therefore, a granddaughter, whether paternal or maternal, qualifies for the concessional stamp duty rate of 1%.

Isaac Gabriel (Expert) 27 February 2022
Family consists of father, mother, and children. Grand daughter not entitled for stamp duty.

Satish (Querist) 27 February 2022
Thank you, Mr Isaac. But the Doc writer is telling me that paternal grandchildren are eligible for low stamp duty.

kavksatyanarayana (Expert) 27 February 2022
The paternal grandchildren, father, mother, brother, and sister come under family members. The other relatives are other than family members. The Stamp duty for other than relatives is 6.5% if the property is other than the Gram Panchayat area. If the property is fallen under Gram Panchayat are is only 5%.

Satish (Querist) 27 February 2022
Thanks for confirming that my daughter (maternal granddaughter) fall into the 'other family' members category. I guess a married daughter is eligible for low Stamp duty as of a family member. Am I right?

P. Venu (Expert) 28 February 2022
Stamp duty varies from State tp State, so does the concessional rate as to gift deeds. You have not disclosed the State where the document is being executed. Anyhow, surname is not a deciding factor.

Satish (Querist) 28 February 2022
Thanks, Mr Venu.

The state is Telangana. Hyderabad precisely.

Satish (Querist) 28 February 2022
Thanks, Mr Venu. The state is Telangana. Hyderabad precisely.

P. Venu (Expert) 15 April 2022
In terms of article 29 of Schedule Schedule IA of the Stamp Act, the stamp duty payable in respect of gifts made to relatives as defined under Section 56(2) of the Income Tax Act, 1961 is 1%. The schedule could be accessed at http://registration.telangana.gov.in/resources/downloads/StampFees.pdf

Section 56(2) of the IT Act, 1961 provides the following explanation -

Explanation.—For the purposes of this clause, "relative" means—

(i) spouse of the individual;

(ii) brother or sister of the individual;

(iii) brother or sister of the spouse of the individual;

(iv) brother or sister of either of the parents of the individual;

(v) any lineal ascendant or descendant of the individual;

(vi) any lineal ascendant or descendant of the spouse of the individual;

(vii) spouse of the person referred to in clauses (ii) to (vi);

As such, in the instant case, stamp duty is leviable is 1% only.

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