There are numerous methods via which you’ll switch a property that you simply personal. It could possibly be by means of sale, Will or present. A generally used technique, particularly when transferring to a member of the family or buddy, is executing a present deed in favour of the recipient. Although no financial transaction is concerned, it’s nonetheless essential to register the present deed to make the switch legitimate.
WHAT IS A GIFT DEED?
Below part 122 of the Switch of Property Act, 1882, you possibly can switch immovable property via a present deed. Like a sale deed, a present deed accommodates particulars of the property, the transferrer and recipient. However as an alternative of a sale consideration in a sale deed, a present deed means that you can switch possession with none change of cash. Registering a present deed with the sub-registrar is obligatory as per part 17 of the Registration Act, 1908, and as per part 123 of the Switch of Property Act. In case you don’t do that, the switch might be invalid.
In addition to that, as soon as a present deed is registered within the identify of the recipient, solely then can she apply for mutation of the property. Mutation is important to switch utility connections within the identify of the recipient. Additionally, for the recipient to have the ability to additional switch the property, a registered present deed might be required.
WHAT ARE THE CHARGES?
Stamp responsibility and registration payment must be paid to register a present deed. In some states, stamp responsibility charges for property switch by means of present is identical as on the market or conveyance deed.
Nonetheless, guidelines fluctuate throughout states; sure state governments even provide some concession if the property is being gifted to blood family members. As an illustration, in Delhi, the stamp responsibility in case of property switch by means of sale or present deed is identical—4% for males and 6% for ladies. In West Bengal, the stamp responsibility on the market or conveyance deed is 5% of the property’s market worth in panchayat areas, and 6% of market worth in municipal areas. In case of a present deed, the speed is identical if the property is being gifted to a non-family member. If recipient is a member of the family, then solely 0.5% of the market worth of the property must be paid as stamp responsibility.
THINGS TO REMEMBER
As soon as a present deed of an immovable property is executed in favour of any recipient, the donor doesn’t have the suitable to revoke or cancel the deed at a later stage, except there’s a particular clause talked about within the deed. Part 126 of the property switch Act offers for a state of affairs whereby a present deed could also be revoked by the donor. As an illustration, if the property was gifted in order that the recipient can reside in it, upon demise of the recipient, the property will get transferred again to the donor if she is alive, else to the heirs of the recipient. Such particulars, nevertheless, must be particularly talked about within the present deed.
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