About Gift Deed
Gift Deed is a legal instrument by which a movable or immovable property can be transferred to another person. Gift deed transfers the property rights immediately. Know more about Gift Deed. In Maharashtra, gift deeds are commonly used to transfer property within the family or to make charitable donations.
Gift Deed is a legal instrument by which a movable or immovable property can be transferred to another person. Gift deed transfers the property rights immediately. Know more about Gift Deed. In Maharashtra, gift deeds are commonly used to transfer property within the family or to make charitable donations.
Stamping and registration of a Sale Deed
This sale Deed copy should be appropriately stamped as per the requirement under the Indian Stamp Act, 1899 or the legislation of the respective states. The sale deed is registered at the jurisdictional Sub-Registrar of Assurances office upon the payment of requisite registration charges as mandated under the Registration Act of 1908. A document that is not properly stamped or is unregistered will not be permitted as evidence, and this transaction is deemed to be incomplete until all the statutory requirements are completely fulfilled. When a party to the sale deed is unable to be present for the execution and registration and is represented by a holder of power of attorney, this is necessary to examine this document thoroughly and is also duly stamped as well as registered. Specifically, where the seller of the property is authorized by an attorney, then the document’s terms may be suitably scrutinized. This is to ascertain that the attorney is authorized for executing and registering the sale deed, to receive the right consideration and to complete all the necessary formalities for the purpose of conveying the suitable title to the buyer. The buyer is entitled to retain the original Sale Deed as evidence of this property ownership. Conclusively, no matter if you are a seasoned investor or just looking for a property for self-use, ensuring a well-drafted Property Sale deed is a must. Equipped with the information in this article, we hope that your quest for a new home will be a lot less troublesome.Process of Agreement-to-Sale
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Frequently Asked Questions
A Gift Deed is the document through which a person voluntarily gifts a movable/immovable property to a person. A Gift minimizes the chances of disputes in property inheritance cases. The registration of a Gift Deed involves charges set by the state government. The article to be gifted can be a movable or immovable property. Under a Gift Deed, the person gifting the property is called a Donor, and the receiver is called 'Donee'.
The essential elements include:
- Details of the donor and donee
- The donor's intention to gift the property
- The donee's acceptance of the gift
- The property's description
- Signatures of both parties
A gift deed is a valuable document in succession matters as it differs from a valid ‘Will’ made by the property owner. Unlike a Will, the Gift Deed is immediately executable, and one does not require a court to get it enforced. Hence, a Gift Deed saves time compared to a settlement through a will.
A Gift Deed transfers ownership without consideration (money), whereas a Sale Deed transfers ownership for a price.
According to the transfer of property Act 1882, a gift Deed is valid only if registered. The registration of a Gift Deed includes the donor's signature and the donee and attestation by two witnesses (mandatory).
In fact, the Gift Deed will be enforceable only if it is registered with the registrar’s office. The registration of a gift deed involves the enumeration of the essential clauses on a stamp paper and payment of the requisite stamp duty. The value of the stamp duty varies from state to state. It must be noted that if the gifted asset is movable, the jurisdiction of the registrar's office will be according to the place of residence of the donor.
Yes, registration of Gift Deed is mandatory in Maharashtra, as per the Indian Registration Act, 1908.
Yes, a minor can be a donee, but the Gift Deed must be executed by a guardian or parent on their behalf.
Yes, stamp duty is payable on Gift Deeds in Maharashtra, as per the Maharashtra Stamp Act, 1958. The stamp duty on gift deeds in Maharashtra varies based on the relationship between the donor and the donee, as well as the type of property being gifted.
1) Stamp Duty:
Applicable to: Agricultural or Residential property only.
Stamp Duty and Registration Fees are applicable on the Market Value in a Gift Deed only when there is no consideration.
As per Article 34 of the Maharashtra Stamp Act, for a Gift Deed of Agricultural or Residential property in favor of Husband, Wife, Son, Daughter, Grandson, Granddaughter, or Wife of a deceased son:
| Doner | Donee | Stamp Duty | LBT Cess | Metro Cess | Registration Fees |
|---|---|---|---|---|---|
| Father | Son, Daughter, Grandson, Granddaughter | ₹200/- | 1% | 1% | ₹200/- |
| Mother | Son, Daughter, Grandson, Granddaughter | ₹200/- | 1% | 1% | ₹200/- |
| Husband | Wife | ₹200/- | 1% | 1% | ₹200/- |
| Wife | Husband | ₹200/- | 1% | 1% | ₹200/- |
| Father-In-Law | Widowed Daughter-In-Law (Deceased Son Only) | ₹200/- | 1% | 1% | ₹200/- |
| Mother-In-Law | Widowed Daughter-In-Law (Deceased Son Only) | ₹200/- | 1% | 1% | ₹200/- |
Gift Deed to Family Members
| Doner | Donee | Stamp Duty | LBT Cess | Metro Cess | Registration Fees |
|---|---|---|---|---|---|
| Son | Father/Mother | 3% | 1% | 1% | 1% |
| Daughter | Father/Mother | 3% | 1% | 1% | 1% |
| Brother | Sister | 3% | 1% | 1% | 1% |
| Sister | Brother | 3% | 1% | 1% | 1% |
| Grandson | Grandfather/Grandmother | 3% | 1% | 1% | 1% |
| Granddaughter | Grandfather/Grandmother | 3% | 1% | 1% | 1% |
Gift Deed to Other than Family Members
| Doner | Donee | Stamp Duty | LBT Cess | Metro Cess | Registration Fees |
|---|---|---|---|---|---|
| Any Person | Other Person | 5% | 1% | 1% | 1% |
| Father-In-Law | Daughter-In-Law | 5% | 1% | 1% | 1% |
| Mother-In-Law | Daughter-In-Law | 5% | 1% | 1% | 1% |
| Uncle or Aunty | Nephew | 5% | 1% | 1% | 1% |
2) State Cess:
i) Local Body Tax (LBT): Local Body Tax (LBT) of 1% is applicable on registration in Maharashtra.
ii) Metro Cess: Metro Cess of 1% is a tax levied by the Maharashtra government on the registration of property, only in Metro Cities like Mumbai, Pune, Pimpri Chinchwad, Nagpur, and Thane. It was introduced in 2019 to fund the development of metro rail projects in Maharashtra.
3) Registration Fees:
Registration fees are variable based on the sale value up to a certain limit; beyond that limit, it is fixed. The registration value is 1% of the sale value or ₹30,000, whichever is higher.
4) Document Handling Charges (DHC) Fees:
Collected online through the Sub Registrar's office. For every page of the document, a fee of ₹20/- is applicable. (A Shivay Services expert can calculate your stamp duty.)
LBT is a tax levied by local authorities (municipal corporations or councils) on the transfer of property.
Local Body Tax (LBT) of 1% is applicable on registration in Maharashtra of documents, including:
- Agreement of Sale/Agreement to Sell
- Conveyance Deed
- Gift Deed
- Exchange Deed
- Partition Deed
Metro Cess is a tax levied by the Maharashtra government on the registration of property transactions, including Agreement of Sale/Agreement to Sell, Conveyance Deed, Gift Deed, and other documents. It was introduced in 2019 to fund the development of metro rail projects in Maharashtra.
Metro Cess is charged at a rate of 1% of the consideration amount (sale value) on the registration of documents.
Investing in a property is a most sought after investment option. However, there might come a situation when you would want to transfer the ownership rights to another person. To transfer the rights there are three way-selling the property for which you must make a sale deed. If you want to gift the property then you need a gift deed and Will is required while the testator is alive and takes effect after his or her death.
Let us understand the difference Gift Deed and Will
| Particulars | Gift Deed | Will |
|---|---|---|
| Time Period | Gift deed is made when the donor is alive and is functional for a lifetime. | Will is operational only after the death of the property owner. |
| Revoked | A gift can be revoked only under special circumstances. | Can be revoked any time. |
| Registration | It is mandatory to get gift deeds registered under Section 123 of the Property Transfer Act and Section 17 of the Registration Act. | Registering a will is not mandatory. |
| Charges | Stamp duty and registration charges should be paid on a gift deed as per state government. | No stamp duty and registration charges are incurred. |
| Act | Gift deed falls under the umbrella of the Income Tax Act. | Will is governed by the Succession law. |
| Transfer Rights | Immediate, while alive. | After death. |
Yes, a Gift Deed can be cancelled if the donor and donee agree, or if the court declares it void due to fraud, coercion, or undue influence.
Generally, a Gift Deed cannot be revoked, but in certain circumstances, like fraud or coercion, it can be challenged in court.
The tax implications vary depending on the property type, value, and location. Generally, the donee may be liable for income tax or capital gains tax.
Benefits include:
- Tax benefits
- Avoidance of disputes
- Legal transfer of ownership
- Clarity on ownership rights
Typically registered within 4-7 working days
The process involves
- Valuation of the Property
- Prepare the agreement document
- Signing by both parties
- Pay stamp duty (as applicable)
- Submit the document to the Sub-Registrar's office
- Sign in the presence of the Sub-Registrar
- Receive the registered document
Shivay Services provides the best services to make a sale deed. All you have to do is provide your contact number and information, consult with our expert, provide relevant documents and get it done.
A title search is a search which gives answer to the question if the owner is really a legal owner of the property and if there are any outstanding claims on the property. This can be done by going through records of property at sub registrar’s office.
If a property has encumbrance on it like mortgage deed or other claim on property then it is known as title defect.
When a property is sold and ownership passes from one owner to other on more than one occasion then title of the property creates a chain of ownership which is called chain of title.
An encumbrance is a thing which creates difficulty in transfer of property from one owner to other for example outstanding mortgages, liens on real estate, unpaid property taxes etc.
Sub registrar’s offices are divided according to regions and specific jurisdiction is allotted to specific office to handle property registrations in that area.
Encumbrances:
An encumbrance is a thing which creates difficulty in transfer of property registration details from one owner to other for example outstanding mortgages, liens on real estate, unpaid property taxes etc. A buyer must check for any encumbrances on the property before buying and should get the property cleared from any encumbrances. This can be checked at the sub registrar’s office within whose jurisdiction the property comes.
Chain of Documents:
Any buyer should check for all the chain of documents before buying a property. Chain of documents are the documents which specify when and how the property has been transferred from one owner to other.
Payment of Dues:
Any property should be free from any dues like property taxes, electricity bills, water bills etc. It is the responsibility of the buyer to check this before registering the property.
Preparation of Deed:
A draft of the deed (Sale Deed, Lease Deed, Gift Deed etc.) that needs to be executed must be prepared on which the details of all the parties involved and the property involved along with terms and conditions must be mentioned clearly before registering the deed.
Stamp duty calculation:
Stamp duty is the fees charged by the government and it varies from state to state. Stamp duty is calculated on the basis of market value of the property involved.
Govt. Payment:
The registration fee and stamp Duty, DHC charges must be paid before the time of registration.
Signing of Gift Deed:
Both the parties and the recipient must sign the gift deed in the presence of two witnesses.
Registration of Gift Deed
The deed must be registered with the Sub-Registrar of Assurances within four months from the date of execution.
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Fill simple form regarding your personal details on Shivay Services website to create a document draft. Upload Documents online on our website. or Send Email / What's app.
Stamp Duty and registration fees to be paid towards register office. Govt. Fee, Stamp Duty and Registration fees varies state to state. Shivay Services help you calculate stamp duty/fee as per current laws/rules.
Registration of document is must as per registration act. All parties has to visit concern registrar office or done online. After satisfactory scrutiny of documents and entities involved, document is registered with easily.