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Shweta (Lawyer)     10 September 2009

Stamp Duty for Gift Deed

Hi All

My client  wants to gift his flat to his so. Can someone pl advice me on the procedure. Also pl let me know wat is the registration amount as well as on how much Rs. stamp paper should be used.

Regards

Adv. Shweta Prabhu

 



Learning

 11 Replies

A V Vishal (Advocate)     10 September 2009

Shwetha,

Kindly tell in which state does your client resides, Stamp duty may vary from state to state. The procedure is simple, you can draft a gift deed for your client and both the donor and donee have to appear before the registration officer and execute the deed before him . A Rs.100 Stamp paper is sufficient and the remaining DSD should be paid in the designated bank and the copy enclosed along with the deed.

m.kupparaju (Advocate)     11 September 2009

If the Gift Deed is executed within Karnataka State Stamp Duty is Rs.1120 and Registration Cost is Rs.500/- and the Gift Deed executed should be between (Husband, Wife, Son & Daughter) I Degree and other expenses like scanning fee etc.,

Shweta (Lawyer)     15 September 2009

The Client resides in Bombay... Wat would be the stamp duty here. Alternatively also want to know wat would be the stamp duty for a genral power of Attorney in Mumbai

V. VASUDEVAN (LEGAL COUNSEL)     09 October 2009

 The stamp duty for transfer of immovable property is same as the stamp duty applicable on a sale transaction, based on the market value of the property. In Maharasthra, different slabs are applicable depending on the city/district. Hence precise details of the Flat is required for determination of the stamp duty. for a general power of attorney (GPA) for registration the stamp duty as applicable in MAH is Rs.100/- only.

Vasudevan

Sushant Singh (Private Service)     12 October 2009

Sir, from your reply I understand that irrespective of the gift deed, even if the flat is not sold but gifted to mother / sister, we still have to pay stamp duty as pre prevalent market rate (in the same way we pay stamp duty while registrating new flat / property). Are there no discounts for second flats or gifts to blood relatives. This would mean shelling out huge sums of money in the vent of gift transfer.

Property Location : 2 BHK flat in Pune

V. VASUDEVAN (LEGAL COUNSEL)     12 October 2009

 There is no option but to pay the stamp duty as if the transaction is sale. However, if the sale of 2nd sale of old flat, the stamp duty original paid when the flat was purchased would be considered for a remission. There is a reckoner available for calculation the remission (reduction). You may check with a local agent who has good contacts with the registrar office to get the transaction done smoothly. The Agents should be available near by the Registrar Office.

Vineet (Director)     16 November 2009

I respectfully disagree with Mr Vasudevan on both the issues.

In the case of gift of immovable property to spouse,  Sister, Brother or any lineal ascendant or descendant in Maharashtra, the stamp duty is leviable at a reduced rate of 2%. Hence gifts to these specified relatives is charged stamp duty at a much lesser rate.

 

As far issue of 2nd sale of residential unit is concerned, the stamp duty charged on first sale is adjusted against the duty chargeable on second sale provided such transfer or agreement for 2nd sale is made within one year from the date of original agreement.

2 Like

V. VASUDEVAN (LEGAL COUNSEL)     16 November 2009

 Dear Mr. Vineet, Thanks for the clarification. I stand corrected. Article 34, as amended by the Mah.tax Laws (Levy & Amendment) Act 2002, provides for the concessional rate @ Rs.10 for every rupees five hundred or part thereof on the market value of the property which is the subject matter of the Gift.

best regards

V.VASUDEVAN

1 Like

Vineet (Director)     16 November 2009

My pleasure Sir.

Shweta (Lawyer)     18 November 2009

So in case the value of the property is Rs. 35,00,00/- then we wil have to calculate 2% on the stampduty that would be levied otherwise had it been a sale transaction. Kindly pl ease give me the working if possible

Vineet (Director)     18 November 2009

The stamp duty in case of gift deed will be Rs 70,000/- for market value of property Rs 35 Lakhs.

In case of sale deed the stamp duty shall be Rs 1,57,600/-

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