gift deed to wife


Dear Sir,

I would like to gift a plot to my wife so the income will be her's when we build something on it. Whats the best way transfer plot ownership to her? Plot was registered in my name as her POA was not available during registration. Funds used to purchase was both mine and her (we both work).

Currently, plot is vacant but would like to build something in future after which I'm assuming that I can show the rental income as her income for taxation?


My goal is to show the rental income (when we built something in future) as her income as she is planning to quit work soon. What would you recommend that I should do?

 
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ha21@rediffmail.com Mumbai : 9820174108

OPTION - 1

1.  Execute a Stamp duty paid Registered Gift Deed in favour of your wife. Submit the deed alongwith appropriate applications to the revenue / civic authorities or the Society (as the case may be), who would mutate the title-ownership entries in your wife's name.  After this wife can build house and rent it out and any income arising of this can be reflected in her income tax returns.


OPTiON - 2

2.  Execute a long-term lease agreement (register it for 50 - 99 years) with appropriate property development clauses.  The title-ownership of the plot remains with you, but the house building + renting and so on can be be done by the wife. After this wife can build house and rent it out and any income arising of this can be reflected in her income tax returns.


Keep Smiling .... Hemant Agarwal

 
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ceo

be ware gift deed cannot be revoked... gone is gone...

 
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LEGAL CONSULTANT

Dear Kiran,

Rightly adivced by Mr.Hemant.

Generally every gift should be supported by gift deed. But practically we dont feel the need of the same while doing the transaction with the close relatives.

To get rid of any income tax proceedings, it is better to be on safe side on our part and should prepare a gift deed evidencing the genuineness of transaction.

 
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Advocate

I would suggest Option 1 as suggested by Hemant is better.

 
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Will rights delinquish deed also work? Will this be any cheaper than gift registration?

 
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LEGAL CONSULTANT

Dear Kiran,

It is relinquish deed and not delinquishment deed.

When joint owners of property wish to release or relinquish their share to anyone or more of other joint owners favour, a release deed or relinquishment deed is used.Two or more may join in one deed.The contents are similar to a sale deed.But once this deed is executed,you loose your rights forever.There is not much of a difference in the cost of executing this deed or a gift deed or a sale deed.

 
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Sir,

There is a big difference between Gift Deed Stamp Duty of 2% and Release Deed Stamp Duty of 5%. On a sum of Rs. 15 Lakhs it comes to Rs. 30,000 and Rs. 75,000 resp.

 

Regards,

Amit

 
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ha21@rediffmail.com Mumbai : 9820174108

For Introspection:


1.  Gift Deed in favour of a FAMILY member = means 2% stamp duty


2.  Gift Deed to a NON-FAMILY member = means 5% stamp duty.


3. Registration fees @ 1%  remains static, in all and any transactions required to be registered


4.  Gift Deed MUST be unconditional and is NOT revocable,  WHEREAS a "relinquishment deed"  CAN be conditional & revocable


Keep Smiling .... Hemant Agarwal

 
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