(Guest)

Due property tax paid by donee can be taken as consideration

Respected lawyers, If during the process of property transfer, if recital on gift deed says all dues property tax paid by doner but in actual it was paid by donee. And opposite party successfully prove so. Can that payment of Property tax by donee shall be considered as consideration and will make the gift deed void? Thanks

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Quick Summary

This discussion explores whether a donee paying property taxes, contrary to a gift deed stating the donor paid, can be considered 'consideration' and void the gift. The consensus among legal professionals is that the donee's payment of property tax does not constitute valid consideration. This is because the tax payment goes to the government, not the donor, and gifts are legally defined as being without consideration, thus the gift deed remains valid.

4 Replies

SHIRISH PAWAR, 7738990900 (Advocate) 01 July 2020

Hello,

As per me payment of property tax by donee does not have much significance and it will not make gift deed invalid only on this ground.

1 Like

Adv Keches Shilwante (Partner @ Legal Biceps) 01 July 2020

Gift is made being without any consideration. Here donee has paid the property Tax, which goes to Government and not in hand of donor. It will consider as Gift without consideration. Hence gift deed is very much valid in eye of law.

1 Like

(Guest)

Agree but due tax libality of the Donner which is being paid by the donee so it can be termed as indirect consideration? Not sure

Sunayana Chhabra 04 July 2020

No, the taxes paid will not amount to consideration to owner. So gift is not void. Feel free to contact at sunayana122@gmail.com for further assistance.