Want to gift property to daughter in Delhi
9 Dec 2013, 17:11
I want to gift a freely-held property (market value: Rs. 55 lakh) registered under my name to my 24-yr old daughter. The property is located in New Delhi, India. Can you give me an estimate of cost involved (in INR) related to stamp duty? Also, is there a discount on stamp duty when it comes to transfer blood relatives?
I’ll greatly appreciate a response.
Many Thanks
3 Replies
Dear Sudha Chandan, In order to gift a property you need to prepare a gift deed in favor of your daughter. This document allows you to gift your assets or transfer ownership without any exchange of money. To gift immovable property, you just have to draft the document on a stamp paper, have it attested by two witnesses and register it. Registering a gift deed with the sub-registrar of assurances is mandatory as per Section 17 of the Registration Act, 1908, failing which the transfer will be invalid. Besides, such a transfer is irrevocable. Once the property is gifted, it belongs to the beneficiary and you cannot reverse the transfer or even ask for monetary compensation.
Stamp Duty on Gift Deeds
1. The property being gifted has to be valued by an approved valuer.
2. Stamp duty and transfer duty @ 4% if the donee is a woman and @ 6% if the donee is a man. Registration fee is 1% of the total value+Rs.100/- pasting charges. State governments offer a concession on stamp duty rates if the property is gifted to blood relatives, although this varies from state to state. When the property is gifted to a person outside the family, the stamp duty is higher and is applicable according to the rules of a normal transfer of property. Get an expert to guide you through the entire process. […]
[quote=“Rutumbhara.Advocate” post=9780]Dear Sudha Chandan, In order to gift a property you need to prepare a gift deed in favor of your daughter. This document allows you to gift your assets or transfer ownership without any exchange of money. To gift immovable property, you just have to draft the document on a stamp paper, have it attested by two witnesses and register it. Registering a gift deed with the sub-registrar of assurances is mandatory as per Section 17 of the Registration Act, 1908, failing which the transfer will be invalid. Besides, such a transfer is irrevocable. Once the property is gifted, it belongs to the beneficiary and you cannot reverse the transfer or even ask for monetary compensation.
Stamp Duty on Gift Deeds
1. The property being gifted has to be valued by an approved valuer.
2. Stamp duty and transfer duty @ 4% if the donee is a woman and @ 6% if the donee is a man. Registration fee is 1% of the total value+Rs.100/- pasting charges. State governments offer a concession on stamp duty rates if the property is gifted to blood relatives, although this varies from state to state. When the property is gifted to a person outside the family, the stamp duty is higher and is applicable according to the rules of a normal transfer of property. Get an expert to guide you through the entire process. […][/quote]
Dear All,
I have a further question to the same effect. If I want to gift a property I co-own with my Son, can I do so. Can I gift my share of property to my Daughter. Also, this property is now under a contract with a Builder to build flats with an agreement 50-50 shares. (50% the builder will take and rest 50% is for us. Can I gift the 25% of the share proceeds to my daughter? How will this be dealt and treated. Please advise.