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Gifting Love, Not Liability: Understanding Stamp Duty on Gift Deeds to Blood Relatives

When gifting property to loved ones, we want to share love, not financial burdens. However, stamp duty on gift deeds can add unexpected costs. In this blog, we’ll explore stamp duty implications on gift deeds to blood relatives, helping you make informed decisions.

What is Stamp Duty?

Stamp duty is a tax levied by state governments on property transactions, including gift deeds. It validates the document, ensuring authenticity.

Gift Deed to Blood Relatives: Exemptions and Concessions

Fortunately, many states offer exemptions or concessions on stamp duty for gift deeds to blood relatives:

  • Parents to Children: Fully exempt in most states.
  • Spouses to Each Other: Exempt or concessional rates apply.
  • Siblings: Some states offer reduced rates.
  • Grandparents to Grandchildren: Exempt or concessional rates in select states.

Stamp Duty Rates for Gift Deeds

Rates vary across states:

  • Range: 2-8% of property value.
  • Average: 4-5%.

Some states impose fixed rates:

  • Delhi: 8%

Documents Required

For gift deed registration:

  1. Gift Deed Document
  2. Identity Proofs (PAN, Aadhaar, passport)
  3. Address Proofs (utility bills, bank statements)
  4. Property Documents (title deed, property card)
  5. Relationship Proof (birth certificate, marriage certificate)

Process and Timeline

  1. Prepare Gift Deed: Consult a lawyer.
  2. Pay Stamp Duty: Online or offline payment.
  3. Register Gift Deed: Sub-Registrar office.
  4. Timeline: Typically 15-30 days.

Tips and Reminders

  • Consult experts (lawyers, financial advisors).
  • Verify state-specific exemptions.
  • Ensure timely payment.
  • Keep documents safe.

It can be thoughtful to give property as a gift to loved ones. Understanding stamp duty implications helps you plan better.

By leveraging exemptions and concessions, you can minimize costs and maximize love.

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Additional Resources

For state-specific guidance:

  • Visit your state’s revenue department website.
  • Consult local experts.

Gift wisely, and spread love!

WHAT IS CONVEYANCING?

A legal document is a written instrument that records and formalizes an agreement, obligation, or other legally enforceable act. It is a communication tool in the legal sphere designed to express and enforce rights, responsibilities, or procedures under the law.

Conveyancing is the branch of law which dealt with modes and forms in which the expression of intention to transfer a property must be shown in a deed, so that it takes effect. Conveyancing deals with the modes and manner in which a transfer of property should take place in order that it may serve as an effective and a valid transaction.

The word ‘conveyancing’ may be said to comprise all the transactions by which legal rights are created and legal relations between persons are brought in existence. It is generally that branch of law that governs and is related to the drafting of documents. The science of drafting is conveyancing.

In law, conveyancing is the exchange of legitimate title of the real property starting with one individual then onto the next, or the giving of an encumbrance

Conveyancing also includes conducting thorough searches and investigations to uncover any potential issues or encumbrances associated with the property. This may involve examining property records, conducting local authority searches, and checking for any legal restrictions or disputes that may affect the transaction.

What is the objective?

The object of executing an instrument is to make the terms of transfer, its subjectiveness, its position contain and express the memory of what is written and to provide a permanent proof of the intention of the parties.

It is a vital process that safeguards both parties’ interests and ensures that the transfer of ownership is legally binding.

The process ensures that the buyer acquires a valid title to the property and that the transfer of ownership is legally binding. Conveyancing is a complex process that involves several steps and parties, and it is vital to work with a reputable solicitor and estate agent to ensure that the process runs smoothly.

SALE DEED

A Sale Deed is a legal document describing the transfer of right, title and ownership of property by a seller to a purchaser at a price fully paid or to be paid in instalments at a future date. The entire amount of sale transaction also known as sale consideration is paid at the time of registration of the sale deed.

MORTGAGE DEED

A mortgage deed is a legal document that gives lender an interest in a property when you take out a loan backed by the property. If a borrower does not pay back a loan in accordance with the agreement, the lender can foreclose and take possession of the property or have it auctioned. Basically, a Mortgage Deed is a paperwork you sign that allows the lender to put lien on the property until the loan is paid.

LEASE DEED

When a property is used and enjoyed by the person in possession of it in exchange for a consideration to the actual owner, the property is said to be leased or rented. When a property is given on a lease, it means that the lessee or the tenant can use the property for a definite period of time for which he/she would be required to pay a certain fixed amount of rent. When this period extends to more than a year, a lease deed must be prepared.

GIFT DEED

A gift deed, also known as a deed of gift, is a legal document that transfers ownership of property from one person to another without monetary consideration. It’s a voluntary transfer that can be of real, personal, or intellectual property, such as real estate, vehicles, jewelry, or financial instruments. A gift deed acts as proof of the transfer and ensures that it’s legally binding.