Parents give property to children, spouses to each other, relatives to relatives. A gift of immovable property is made through a registered gift deed, and the way it is planned decides the stamp duty you pay and the tax questions that follow. CA Dhiraj Ostwal guides you through both.
What we help with
- Whether a gift deed, a will or a sale at a family price suits your situation better
- Details to be recorded in the gift deed and the documents the sub-registrar expects
- Stamp duty and registration fee for the gift, including concessions for close family where available
- Tax position of the receiver, including gifts from specified relatives
- What happens to the cost and holding period when the receiver later sells the property
- Reporting of the gift in the returns of both parties
Points to keep in mind
- A gift of immovable property must be made by a registered deed.
- The giver must own the property and be competent to give it, and the receiver must accept it.
- Gifts to people who are not specified relatives can be taxable for the receiver above the limits in the law.
- A gift cannot be used to defeat the rights of lenders or co-owners, so the title is checked first.
Note: a legal title opinion or a court matter is given by an advocate; where your case needs one, we coordinate it with you and keep the tax and compliance side in one place.
Talk to CA Dhiraj Ostwal in India. Share your documents and your plan, and we will tell you what is needed, how long it takes and what it costs before you commit.
Documents you will need
- Title documents of the property and the latest property tax receipt
- PAN and Aadhaar of the giver and the receiver
- Proof of relationship, such as a family certificate or birth records
- Passport-size photographs and two witnesses with ID
- Society NOC, where applicable
- Valuation or ready reckoner value of the property on the date of the gift
A gift of property is simple in intention and easy to get wrong on paper. We guide you on the deed, stamp duty, registration and the tax consequences for the giver and the receiver.
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