Yog Raj Wadhwa (VP(F&C)) 04 May 2015

Gifting / transfer of immovable property

My Sister has made a Gift deed and relinquished her ownership rights in favour of her major unmarried daughter for an immovable property which has been accepted by the daughter.

The Gift deed is Noterised at present and yet to be registered. It will get registered when the daughter will have accumulated/saved funds from her own sources as her mother is not willing to incur any amount of Stamp duty etc.

Please advise on the status of the Gift Deed under I Tax Act, Gift Tax Act and Transfer of Property Act with applicable dates if there is income from that property, Liability of Property Taxes and maintenance expenditure of the Property.

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2 Replies

Vineet (Director) 05 May 2015

No Income tax liability in this transaction of gift between mother and major daughter. Where is the property situated? If in Maharashtra, w.e.f 24th April, stamp duty of Rs 200/- only is payable on gift of immovable property to children.

In other states, please check loacl stamp duty laws. Please be aware, gift instrument will be enforceable only after payment of stamp duty and compulsory registration. They will have to pay interest and penalty also for non payment of stamp duty.

Yog Raj Wadhwa (VP(F&C)) 06 May 2015

Please clarify, Whether the Gift deed, till it is registered, will be a valid document under I Tax Act. Further Effective which date the Daughter will be laible to pay Municipal Taxes, and other maintenance, i.e. the day the Gift was accepted or the day when the Gift deed gets registered as the same is yet to be registered. Pl inform the Stamp duty for this transaction , the property is situated in New Delhi.