Introduction
Gifting house property in India has certain income tax and stamp duty implications. The stamp duty on gift deeds in India varies from state to state. Stamp duty on gift deeds can vary from 2% to 7%, depending on the value of the property. However, many states waive stamp duty charges when gifts are given to relatives. Now let’s find out how.
Table of Contents
- Gift Deed Stamp Duty, Registration Fee
- How to Calculate Stamp Duty on Gift Deed?
- Who Pays the Stamp Duty on the Gift Deed?
- Registration of Gift Deed is Mandatory
- Stamp Duty And Registration Charge Must Be Paid
Gift Deed Stamp Duty, Registration Fee
When it comes to gift deeds in India, there are some legal and financial implications to consider.
- Stamp Duty on Gift Deeds:
Stamp duty on gift deeds varies from state to state based on the value of the property. Generally, it ranges from 2% to 7% of the property value. However, some states waive stamp duty charges when gifts are given to blood relatives.
- Gift Deed Registration Fee:
Note that stamp duty is payable by the gift giver at the time of registration. As with most property-related deeds, gift deed registration charges apply to make the instrument legally binding. The registration fee is usually 1% of the property value.
| States | Stamp duty as a Percentage. | Registration fee as percentage |
| UP | Rs 5,000 for property exchange among blood relatives 5% for others | 1% |
| Haryana | 5% | 1% |
| Delhi | 4% | 1% |
| Maharashtra | 3% | 1% |
| Gujarat | 3.5% | 1% |
| Rajasthan | 6% | 1% |
| Madhya Pradesh | 5% | 1% |
| Andhra Pradesh | 2% | 1% |
| Himachal Pradesh | 6% | 1% |
| Tamil Nadu | 7% | 1% |
| Karnataka | 5% | 1% |
| Punjab | 6% | 1% |
| Bihar | 5.7% (for women) and 6% (for men) | 1% |
| Jharkhand | 3% | 1% |
| Kerala | 2% | 1% |
| Chhattisgarh | 5% | 1% |
| Uttarakhand | 5% | 1% |
| Telangana | 0.5 % (subject to a minimum of Rs 1,000 and maximum of Rs 10,000 | 1% |
| Odisha | 3% | 1% |
How to Calculate Stamp Duty on Gift Deed?
A certain percentage of the property value is payable as stamp duty on gift deed registrations in the state. For example, in UP, the recipient of the gift has to pay 2% of the value of the gift as stamp duty. The stated value of the gifted property is Rs. Suppose Rs. 10 thousand. 1 crore. Then, the recipient pays Rs. 2 lakhs.
Who Pays the Stamp Duty on the Gift Deed?
The donor pays stamp duty and other ancillary charges at the time of registration of the deed. In other words, in the case of a gift deed, the responsibility of paying stamp duty and registration fees is on the donor. Not on the recipient.
Any disbursements from the recipient of the gift shall be payable to the owner. As per the provisions of the Transfer of Property Act, the transaction falls within the ambit of ‘sale’. So, the donor pays stamp duty and registration fees on the gift.
Registration of Gift Deed is Mandatory
The Transfer of Property Act lays down the legal framework for transfers of property in India. According to this Act, if one wishes to transfer a house property as a gift, certain legal formalities have to be completed. These formalities are essential to ensuring that the transfer is legal and enforceable.
To transfer house property by gift under this Act, a registered instrument or document is required. The document must be signed by or on behalf of the person gifting the property and attested by at least two eyewitnesses. The purpose of attesting the document is to ensure that the transfer is voluntary and without any coercion or undue influence.
Emphasizing that the document must be formally registered with the relevant governing body. An unregistered document cannot be used as evidence of the transfer of property. Has no legal significance.
Additionally, payment of stamp duty on the gift deed is also mandatory. The amount of stamp duty varies from state to state and is usually a percentage of the market value of the gifted property.
Stamp Duty And Registration Charge Must Be Paid
If you are gifting a property to someone, you will also have to pay stamp duty and registration charges on the gift deed. A gift deed is a legal document that transfers the ownership of a property from the donor to the recipient. When you submit for registration, the registrar should affix the correct document.
The amount of stamp duty and registration charges payable on a gift deed is generally the same as in the case of a regular sale. The rate of stamp duty varies from state to state. It usually depends on the location, market value, and type of property.
Conclusion
A transfer of house property as a gift is a legal transaction that requires the completion of certain formalities under the Transfer of Property Act. These formalities include the preparation of a registered gift deed, attestation by eyewitnesses, and payment of stamp duty. For more information, visit our Openplot.com form.
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