• Legal liabilities of a property gift

I wish to gift my flat in Navi Mumbai to my wife as a surprise on the occasion of wedding anniversary.The property is worth about 50 lakhs as per govt. rates.I want to know what are the legal and tax related issues can she may face post the receipt of the gift.
Asked 4 years ago in Property Law
Religion: Hindu

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11 Answers

Sir, you can surprise her but later for gifting property the registration is compulsory. You have to execute a gift deed in favour of your wife, a gift deed need to be drafted and then registered before sub registrar by paying appropriate stamp duty and registration and both you and your wife presence is required.

There will be no tax liability as gift from near relatives is tax free and not treated as income.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1. For gifting the property, your wife will need to sign the gift deed

2. the donee wife will not have any legal or tax issues due to the gift

3. after your surprise, you will need to sign a gift deed with your wife and have it registered to confer proper title on your wife

Yusuf Rampurawala
Advocate, Mumbai
6880 Answers
79 Consultations

5.0 on 5.0

once gift deed is executed wife would be absolute owner of property

2) title in property passes on to the donee

3) you have to transfer flat in society records after execution of gift deed

4) wife has to declare gift of flat in her income tax returns

Ajay Sethi
Advocate, Mumbai
87917 Answers
6207 Consultations

5.0 on 5.0

This is my response to you:

1. The idea of a Gift is a very good surprise but make sure you do the transfer by complying with all legal processes;

2. But the Gift Deed has be to made by complying with all the legal processes;

3. The Gift Deed will invite a stamp duty of Rs.500 or less and registration charges at the maximum rate of Rs.30,000/-;

4. Therefore approach the Sub-Registrar and inquire about the stamp duty and registration charges for specific rates and draw the DD of the same;

5. Engage services of a lawyer to draft an efficient Gift Deed and/or a property agent/broker to comply with all the formalities regarding the transfer.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

Dear Client,

Without registration, Gift is not valid and for registration her present will required. Registration fees Rs. 200.

No tax implication, as it is not new purchase.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

You will have to get your gift deed registered with the registration office

Anwar Zaidi
Advocate, Mira Bhayandar
231 Answers

4.5 on 5.0

Hello,

She will not face any issue once the property is transferred to her name as a gift.

Though she will be subjected to all the government taxes once the property is transferred to her name.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

You wife has to go as per new act plus you have to 6% stamp duty and registration charges.

Section 56(2)(x)

Finance Act 2017 has inserted a new clause (x) in section 56(2) w.e.f 1st April 2017 (i.e. applicable from AY 2018-19 related to FY 2017-18) which has considerably widened the scope of provisions taxing deemed gift as income. The applicability of corresponding old deemed gift clauses being section 56(2)(vii) and 56(2)(viia) has been restricted upto AY 2017-18 only.

The new clause (x) envisages to tax the deemed gift of certain defined properties/assets in the hands of every person receiving such property/asset subject to certain exceptions as provided therein. The old provisions were only applicable to some persons & not all persons. Also, earlier in the hands of Firm and a private company, the receipt of only unquoted shares of a private company was covered by deemed gift taxing provisions whereas now it covers all the defined properties/assets.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

She will not suffer any tax at this stage when the property is registered on her name.

She may have to pay the capital gains tax at the time of selling the proeprty.

Even the wealth tax will not be applicable at this stage.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

1. The Gift Receiver (wife) shall have no liability for ANY taxations, whatsoever, IF the property is Gifted to her by her Husband.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

If the immovable property is received as a gift to your wife, it will not be subject to income tax in the hands of the recipient.

When a wife receives a house as a gift from her husband, the gift will not be taxable as income in her hands. However, if she lets out the house and earns rental income, such income, instead of being taxed as her own income, will be clubbed with the income of her husband and taxed as his income. A similar treatment will apply to any capital gains she earns from the sale of the house.

For legal purposes, you'll have to get a gift deed drafted and registered in favour of your wife, if the said property is in your name.

Siddharth Jain
Advocate, New Delhi
5928 Answers
101 Consultations

5.0 on 5.0

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