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Rekha paliwal (housekeeper)     29 August 2009

Property Gift from brother

My brother who is NRI working at Oman and capable of Gifting ,wants to Gift money for Duplex house being developed by builder at Bhopal,MP.

Pl.tell me whether with this money ,i can buy this house in my name as gift from my brother or firstly he should purchase in his name and later gift  to me.What should be the right way legally ?If later case what would be the registration and stamp duty cost?

Rekha Paliwal


 3 Replies

A V Vishal (Advocate)     29 August 2009

Dear  Rekha

Let your brother execute a gift deed of money and transfer the amount thru the banking channel viz. transfer, drawing a cheque or draft and depositing it in your account from where you can issue a cheque in favour of the developer. This way you you save on paying for stamp duty & registration twice, but, in case if the property is bought by your brother in his name and he later transfers it on to you, you will have to bear stamp duty on the original purchase of the house by your brother in his name and again pay stamp duty to register the gift of the house in your name. Moreover, simple notary is sufficient for notarising the gift of money but in case of gift of immovable property it is mandatory to register the gift deed.

1 Like

Deekshitulu.V.S.R (B.Sc, B.L)     30 August 2009

Mr Vishal is right to some extent

Simply take a letter from your brother that he is gifting the amount to you for purchase of the house in you own name. Then every thing is finished

Vineet (Director)     03 October 2009

A simple confirmation from your brother regarding gift of money alongwith reasonable proof of transfer of funds through legal channels is sufficient in so far as gift from your brother is concerned. It will neither attract stamp duty nor any Income Tax liability. You may have to satisfy the IT authorities regarding creditworthiness or in simple words capability of your brother to gift you the claimed amount.

The purchase of property directly in your name is always stamp duty efficient.

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