Transfer of Property by way of GIFT DEED in INDIA (Very Informative & useful information)

WHY GIFT needed:

In INDIA, there are many instances where someone wish to gift his/her owned movable or immovable (property) to close relatives with love & affection so in this situation, one can simply use route of GIFT DEED to save stamp duty and transfer property to his/ her relative.

What is the meaning & advantage of Gift Deed?

A gift deed is a document by which ownership of the property can be transferred without any Consideration. A person who transfers the ownership is called a “Donor (Giver)” and the person who gets the ownership is called a “Donee (Receiver)”.

Properties That can be Gifted Through a Gift Deed

Both immovable and movable properties can be given away as gifts by the donor to the donee. Immovable property means land or any benefits arising out of land or anything attached to the earth but does not include growing crops, standing timber or grass. The properties that are not considered immovable properties are considered as movable properties.

However, the donor can gift only the properties that are existing at the time of registering the gift deed. He cannot gift the property which he expects or will get in future. The donor can gift only the properties of which he/she is the lawful owner. The donor must be owning the property of the gift at the time of making the gift.

Legal requirements for gift deed

Under the provisions of the Transfer of Property Act, the transfer of a house property as a gift, has to be backed by a registered instrument or document, signed by or on behalf of the person gifting the property and it should also be attested by at least two eyewitnesses. This means, one cannot simply decide to gift a property and do so without completing the legal procedure, if they intent to make the transaction legally binding.

Just like in the case of sale deeds, a gift deed must also be registered in the sub-registrar’s office, following the due procedure.

What are the Proeprty Documents Required for GIFT DEED?

The Donor (Giver) & Donee (Receiver) should provide following Documents:

• Purchase Agreement along with Index II;
• Completion Certificate;
• Aadhar Cards and PAN Cards of both the parties;
• Electricity Bill; and
• Property Tax Bill.
• Society Registration Certificate.
• Society share certificate.

When Stamp Duty Exemption is Applicable?

In case the Donor gifting the agricultural or residential property in favor of Near Relatives (Husband, Wife, Son, Daughter, Grandson, Granddaughter or Wife of a deceased son

What are Stamp Duty and Registration Fees/Charges for Gift Deed?

Curent Stamp Duty in Pune

• Gift Deed in favor of Near Relatives (in favor of Husband, Wife, Son, Daughter, Grandson, Granddaughter or Wife of a deceased son) – Rs. 200/- Stamp Duty, 1% LBT, and Rs. 200/- Registration Fees.
• Gift Deed in favor of other Family Members (not in favor of near relatives) – 3% Stamp Duty, 1% LBT, and 1% Registration Fees (Max Rs. 30,000/-) is applicable.
• Gift Deed in favor of other than Near Relatives and Family Members – Equivalent to Sale Deed/Conveyance Deed.  

Stamp Duty rules may almost same in entire india however LBT may vary as per states or even cities of india as it's under purview of local authorities to decide and levy and it keep revising time to time so one can check these charges locally where property is located.

What is the Difference between Gift Deed and Will

There are few major differences between Gift Deed and Will which i will try to explain in simple language:

Difference 1) Gift Deed to be given during the lifetime of Donor (Giver) to Donee (Receiver) and will transfer full owndership rights to Donee(receiver) during the lifetime of Donor (Giver) which means Donee (receiver) will become new owner of the property in all related property documents therefore no dispute will arise after Donor(Giver's) Death whereas Will also made during the lifetime however Will only come to force after Death of the Will issuer so if any property mentioned in the Will can only be having ownership rights transferred in documents afterr Death of Will issuer.  

Difference 2) Gift Deed must be registered and incur some Stamp duty charges, LBT (local body tax) & lawyer fee whereas Will does not require compulsarily to be registered so have less charges to make Will however Will still incur expenses when it comes to effect after death of Will issuer to transfer all property documents rights to Will Recevier in form of Lawyer fees, public notice etc.

Difference 3) Gift Deed is very easy process and not only defines clear ownership rights but also transfer the property ownership to Donee (Receiver) during the lifetime of Donor (Giver) therefore it avoids all disputes whereas Will only comes to effect after Death of Will issuer so will be more cumbersome process and ownership rights will be transferred only after Death of Will issuer So it may create dispute with other family members or stakeholders. 

Source of above information: Online and many legal advisers, still it may vary case to case and changes of legal framework.

ASSISTANCE:

We can Assist in getting GIFT DEED done in MAHARASHTRA including MUMBAI, PUNE & other major cities.

Further, We are also professional real estate consultant having experience of more than decade & half and can assist in entire process related to PROPERTY IN INDIA and can be a complete one stop solution of above discussed various procedures and even assist in getting following services with our collaboration with very experienced legal advisers to conclude any such transaction smoothly.

OUR BROKERING SERVICES:

Real Estate Brokering and consulting services (Buy/Sell & Lease High ticket Properties in Pune, Panchgani, Mahabaleshwer, Lonavala, Mumbai & Goa cities of India.) 

We provide brokering consulting services in both Residential & Commercial properties.  

Residential includes Pune Properties - Pune Property, Flats in Pune, Residential Properties Pune, Pune Properties – Find Flats in Pune, Pune Property,Properties in Pune,

Buy 1 2 3 4 5 bhk Luxury Flats, Apartments, penthouses, Bungalows & villas in Pune, New Residential Plot and Property & Real Estate Projects Ready & under construction Residential Projects in pune. Ready & under construction Residential Projects in mumbai. 

Commercial properties include Pune office spaces find sale, Buy, purchase, Pune co-working space on lease, Rent pune office for sale, pune shop for sale, pune showroom for sale, pune shop for rent, pune showroom for rent, Room Hotel for rent, sale, buy, purchase, Restaurant veg, non veg Restaurant for rent sale buy purchase, land plot sale purchase buy. hospital rent lease buy purchase sale, school rent lease buy purchase sale, full building rent lease buy purchase sale.

UNDER-CONSTRUCTION PROJECTS

ASSITANCE IN PURCHASING UNDER-CONSTRUCTION RESIDENTIAL AND COMMERCIAL PROJECTS IN MUMBAI,PUNE, DELHI, NOIDA & OTHER MAJOR CITIES OF INDIA.

it requires extensive research and experience to choose best available option at the given time as opportunity always keep changing.  in this case, we can assist prospective buyer in 2 ways: 

Option 1) Pure consultancy on fixed fee basis: in this way, we will assist buyer to find best project and property as per his preferences & budget as buyer may already reached to builder & negotiating so we can not be paid by builder so in this case fixed fee will be charged to buyer in advance before giving the consultancy then buyer can directly approach to builder to finalize the property. 

Option 2)  We involved as a Brokering company: in this way, prospective buyer will visit through us to each project and we will be registered reprsentative with builder for buyer so in this case, buyer has to pay nothing for our same consultancy services which we were giving in above option 1, even we will refund fee which we receive from buyer for option 1.  

ADDITIONAL CONSULTANCY SERVICES:

• PREPARING REPORT OF ALL RESIDENTIAL / COMMERCIAL PROJECTS IN SPECIFIC LOCATION OF MUMBAI OR PUNE CITY & ADVISING/ASSISTING INDEPANDENTLY TO PURCHASE BEST PROJECT FOR ENDUSE OR INVESTMENT. 
• helping missing property documents index2, purchase/sale agreements in PUNE city only.
•  PAN card for any NRI / PIO without visiting India, 
•  Assistance in reducing TDS on sale of property legally (ENTIRE INDIA) 
•  Will & GIFT DEED (Mumbai, Pune & other major cities of Maharashtra state)

hope able to explain our point of view, still any query, please contact anytime on given contact number for detailed Discussion, cell no./whatsapp # +91-9822052388 / +91-7498829332, Email: deepaksundrani@thegururalty.com. 

There are many Advantages & Benefits to hire professional consultant which can be experienced only after hiring right person.

Rest assuring here that we work very ethically, honestly and professionally and for us, our client interest is utmost and foremost then anything else. We have already successfully assisted many NRI’s, EXPATS INVESTORS & LOCALITIES to purchase property in both Mumbai & Pune cities as per their requirements & preferences and most of them are with us to manage their properties through us only so one can judge the level of trust & integrity we have in our work & services.  

Thank you very much for reading my article as here intention is to share information and enhance knowledge for each & everyone for the betterment & provide more transparency in real estate sector.

wishing everyone good health and happyness.

Warm Regards,

Deepak Sundrani