Stamp obligation is payable on a present deed, and differs throughout states

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I personal a property in Maharashtra and wish to switch it as a present both to my spouse or minor daughters. How a lot stamp obligation I’ve to pay for switch of property to a belief the place the registered beneficiaries are my spouse and daughters?

—Mayur Shah

Present of immovable property must be in accordance with part 122 of Switch of Property Act, 1882. A present is taken into account legitimate solely when (i) it’s made voluntarily; (ii) it’s with out consideration; (iii) there was a suggestion by the donor (particular person making the present); and (iv) the supply has been accepted by the donee (particular person receiving the present). So, for the present to be legitimate, you could switch the property voluntarily, with out consideration, and it have to be accepted by your spouse or daughters throughout your lifetime while you’re able to giving. The switch have to be effected by a registered and stamped instrument signed by you or in your behalf and attested by a minimum of two witnesses. A present to a donee who’s a minor is legitimate if the guardian, on behalf of the minor, accepts it. As held in Okay. Balakrsihnan v. Okay. Kamalam (AIR 2004 SC 1257), if the donor is gifting property to his personal minor little one, acceptance may be presumed to have been made by him with none overt act signifying acceptance by the minor.

Stamp obligation is payable on a present deed, and differs throughout states. In Maharashtra, fee of stamp obligation is ruled by Maharashtra Stamp Act, 1958 (Stamp Act). The stamp obligation leviable on a present deed for an immovable property, is similar as payable on conveyance of immovable property. Stamp obligation is calculated on the idea of the property’s market worth.

If the present is made to a member of the family—husband, spouse, brother or sister of the donor or any lineal ascendant or descendant of the donor—obligation chargeable shall be on the similar price as specified above, or 2% of property’s market worth, whichever is much less.

Additional, vide the Maharashtra Stamp (Modification) Act, 2015, which got here into impact from 24 April 2015, it has been offered that if residential and agricultural property is presented to a husband, spouse, son, daughter, grandson, grand-daughter or spouse of deceased son, obligation chargeable shall be 200 solely.

As per part 17 of the Registration Act 1908, it’s obligatory to register a present deed of a immovable property with the sub-registrar of assurances inside whose sub-district the entire or some portion of the property is located, inside 4 months of execution. Else, switch might be held invalid. Relevant registration fees might be payable. If you wish to switch the property to a belief the place registered beneficiary might be your spouse and daughters, stamp obligation will rely on whether or not there’s disposition of property. If there’s disposition, which can occur on this case, stamp obligation might be similar as paid on a conveyance of immovable property, for a sum equal to the quantity settled or the property’s market worth. The instrument of switch to the belief may even must be registered as set out above.

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