gift deed

Gift deed of any amount from close relative dosen't attract any income tax. But I've some questions?

1. While registering gift deed of immovable property; whether stamp duty of consideration as per market value of gift should be paid? and at what rate?

2. If aforesaid gift deed doesn't attract income tax, whether it is considered as Wealth of donee and attract tax under wealth tax paid by donee?


generally the Stamp Duty is levied as per Stamp Schedule of the State where the property is situated. (amendment of Act of that State where the property is situated) so where the property is situated?  The stamp duty shall be levied on Market value of the property or as noted by the parties, whichever is higher.  The person who obtained the property shall pay incometax.  This is for information only.



1)Stamp Duty is to be paid as per ready reckoner value of the property and if property is to be transferred to a close blood  relative by way of gift then  stamp duty requires to be paid  at rate of 2% of value

2)If gift is made to close relative as specified in sec 56 of I T Act then only there is no income tax liability. However such property is  taxable as wealth as per wealth ACT  how ever one residential property is exempted from wealth  tax similarly assets like FDR, BUSINESS ASSETS, BANK BALANCE ETC are exempt  from Wealth tax. please note that asset in excess of Rs 5 crore only are taxable


please refer to my earlier reply in which  I have stated that wealth up to Rs 5 crore is exempt , this  needs correction  please note that  wealth up to Rs 30,00,000/- only is exempt for AY 2013-14  and  wealth in excess of Rs 30,00,000/-  is taxable at rate of 1% . I highly regret mistake on my part .




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