• Stamp duty on gift deed to a trust

I have agricultural land in Karnataka. I want to donate it to the trust, in which I am a trustee. The trust has obtained permission under 109 to acquire this land. If I transfer the property to the trust using a gift deed, is there any exemption/reduction on stamp duty and registration charges? Thank you in anticipation.
Asked 4 years ago in Property Law
Religion: Hindu

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9 Answers

Normally it is 1.50% of the value of property but you may check in local collectorate office.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

1) stamp duty is state subject and varies from state to state

2) local lawyer can guide you as to stamp duty payable on gift deed executed in favour of trust

Ajay Sethi
Advocate, Mumbai
87938 Answers
6207 Consultations

5.0 on 5.0

Dear Client,

No such exemption on stamp duty is provided in Blore and most other states in India except executed in favor of blood relative and govt. bodies.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Stamp duty and registration fee applicable in this transfer--stamp duty of 5% on the market value of the property + surcharge + cess and 1% registration fee.

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

Sir since the gift is made to a trust there will be no reduction in stamp duty. The trust is bound to pay the stamp duty and registration fee on gift deed of immovable property.

stamp duty of 5% on the market value of the property + surcharge + cess and 1% registration fee.

If it was gifted within family member

stamp duty and registration fee on gift deed of immovable property is fixed stamp duty of Rs.1000 + surcharge + cess and fixed registration fee of Rs.500.

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0

The stamp duty for transfer by gift deed to trusts would be applicable according to the nature of trust i.e., whether charitable or non charitable.

As per the Transfer of Property Act, 1885, Section 122 of the Act, defines gift as "gift is the transfer of certain existing movable or immovable property made voluntarily and without any consideration by one person called donor (one who gives the gift), to another called the donee and accepted by or on behalf of donee (one who receives the gift).

The deed needs to be stamped with appropriate non judicial stamp which depends upon the value of the property.

T Kalaiselvan
Advocate, Vellore
78097 Answers
1543 Consultations

5.0 on 5.0

You can do the following:

1. There is no exemption as such;

2. The stamp duty rate and registration charges can be found at the nearest Sub-Registrar's office;

3. Most probably you can get a levy in the income tax returns, which is again subject to the land area, growth etc.;

4. The Sub-Registrar's address can be found: https://www.karnataka.com/real-estate/bangalore-sub-registrars/

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

Yes, if it is for without any consideration meaning here by is in return of any money then you would not have to pay stamp duty on it as 5 % of the total value of the property.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

As per the the Karnataka stamp Act 1957 stamp duty is applicable to gift deed. You can still apply for exemption at the sub registrar office for the same.If you want to transfer the property to a trust where registered beneficiary will be your wife and daughters, stamp duty will depend upon whether there is disposition of property. If there is disposition, which will happen in this case, stamp duty will be same as paid on a conveyance of immovable property, for a sum equal to the amount settled or the property’s market value. The instrument of transfer to the trust will also have to be registered as set out above.

Prashant Nayak
Advocate, Mumbai
27267 Answers
88 Consultations

4.4 on 5.0

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