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Arvind Gupta   17 November 2019

Gift of unregistered flat to daughter

I had booked a flat in Bhopal in the year 2014.Recently the builder completed the flat and handed over its possession to me,after receiving balance amount .He also gave me No Dues Certificate to me.So far , Sale Deed of the flat is not registered in my name.I want it to be registered in the name of my married daughter,who is my only child and is house wife.Her husband is a businessman and is filing his Income Tax Return every year as well as of my daughter for very nominal income.The builder of the flat is ready for registration of Sale Deed in favour of my daughter, if I submit an Affidavit to him that the entire amount paid by me , should be treated as paid by my daughter and she will be owner of the flat and I will not claim any amount from her in future.
I request the Learned and Experienced Legal Experts to advise me , whether I should give Affidavit to the builder for registration of Sale Deed in favour of my daughter.Is there any other Document/Affidavit/Deed is also required , before or after registration of Sale Deed in favour of my daughter.I don't want any problem from Income Tax Authorities in future.Rate of Stamp Duty for registration of Sale Deed and Gift Deed are same in M.P.and I don't want that first I should spend money for registration of Sale Deed in my favour and again I should spend same amount for registration of Gift Deed in favour if my daughter.I again request the Learned and Experienced Legal Experts to guve me most suitable and cost effective advice. I am a retired Senior Citizen and depend only on limited amount of pension.


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 5 Replies

kavksatyanarayana (subregistrar/supdt.(retired))     17 November 2019

There is no need to give Affidavit to the builder.  The builder is already agreed.  so do the registration of sale deed in the name of your daughter. it is sufficient.

G.L.N. Prasad (Retired employee.)     18 November 2019

You may make a notarized affidavit and give it to your daughter, and a copy may be provided to builder with attestation by you and your daughter as precaution.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     18 November 2019

There is no problem if the sale deed is executed in her name. But it can be viewed as benami or as gift. If the sale deed  states that your daughter is purchasing the flat with cash gift given by you, it will become a gift. In other words it will be cash gift from you instead of property gift. In either case it will appear as income in the income-tax returns of your daughter. Also in all future income tax returns your daughter will have to fill up under "Income from house property". If she stays in the house it will be treated as self-occupied and no tax will be payable. Another alternative available to you is to purchase the flat in your name and write a will bequeathing the flat in her favour..

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     18 November 2019

Gift from father to daughter is exempted from income-tax. But income from house-property shall be taxable.

Arvind Gupta   19 November 2019

I am very much thankful to Legal Experts Mr.kavksatyanarayan,Mr.G.L.N.Prasada & Mr.M.P.S.Rajani.I request other Learned and Experienced Legal Experts for their valuable advices to me.

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