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Gift of property

Lila (Job) (512 Points)

24 January 2020

I have 2 queries related to gift:

1. A sum of money is gifted by mother to son. Is there any minimum value prescribed for stamp duty to be paid while executing the gift deed or else can the gift deed be made on a simple stamp paper of Rs. 100.

2. Property is being gifted by son to mother, is there any stamp duty payable while doing name transfer. What is the best way (inexpensive) to transfer property from son to mother.

3. If the above two transactions take place at the same time, can they be considered together by IT department and capital gain taxes be levied (considering it to be a sale transaction).

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6 Replies

Roshni (Studwnt) (1141 Points)
Replied 24 January 2020

1. not prescribed you can do it on 100/- stamp paper
2. same gift deed can be made for this transaction as well
3. IT department cannot consider it as sale, both transaction being documented it cannot assume such. However if it does...still it being gift from relative will be exempt.

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Kapadia Pravin (17259 Points)
Replied 24 January 2020

1. Stamp paper is State Wise and it's different across STATES. Hope the gift sum is in cheque.

2. Similar gift deed may be made. Again Stamp paper and Registration is STATE dependent

3. You have to support the above with documents.

rama krishnan (12239 Points)
Replied 24 January 2020

It seems in the veil of gift, transfer has been made. however it depends upon the AO to accept or reject. in my opinion, it'll tantamount to transfer and capital gains tax will arise

Lila (Job) (512 Points)
Replied 27 January 2020

It is for the state of maharashtra. Now pls let us know, how much stamp duty, we may have to pay..

Lila (Job) (512 Points)
Replied 29 January 2020

Would request experts to revert on stamp duty payable..................................Thanks

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debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 14 April 2020

As per the transfer of property act , ownership in immovable property can be transfered effectively through a duly stamped and registered conveyance deed other wise it won't be a valid transfer.
It can be either be a gift deed or a relinquishment deed or a sale deed ( for which payment of sale consideration is required to be shown )
The only way to avoid payment of stamp duty on registration of a deed is to make a" memorandum of record" of a family settlement between mother and son ( if a family settlement that has orally taken place at an earlier point in time and it then later recorded into writing is termed a memorandum of record of family settlement ) .
Show the share of the son to have been transfered to the mother in the " memorandum " and obtain a decree of declaration on the basis of the memorandum . Such a decree will create ownership of mother on the share of son and does not require to be registered .