• Stamp duty on gift deed and income tax on selling property

Hi Sir,
My mother has one immovable property in her name in Rajasthan & she does not have pan card.
I want to know the best way of using amount of selling that property.

1. should my mother gift it to me & pay stamp duty on it. then I will sell this property & invest the amount received from it to purchase flat in Delhi & NCR.

OR

2. My mother should sell it & pay income tax on it & then i will use that money to purchase flat in Delhi & NCR.

What would be the best way ?

Is there any other way we can go to sell property & save tax on it.

Regards
Ghanshyam
Asked 2 years ago in Property Law from Ghaziabad, Uttar Pradesh
if your mother gifts property to you it would attract 2%stamp duty . in addition registration charges would have to be paid . then if you sell property it would attract another 5%^stamp duty and registration charges . 

best bet is for your mother to sell the property . if mother is holding on to it for number of years it would attract   long term capital gains . then your mother can purchase flat in joint  names . you would be joint owner of flat .
Ajay Sethi
Advocate, Mumbai
23240 Answers
1219 Consultations
5.0 on 5.0
ask your mother to sell the property and invest that amount in a property in delhi ncr in joint name
Rajeev Bari
Advocate, New Delhi
1506 Answers
92 Consultations
3.5 on 5.0
Hi, you can sell the property directly through mother only.
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
1. If your mother gifts you the property then she will have to pay stamp duty @ 11% (as this is the rate prevailing in Rajasthan) in addition to registration charges. After you sell it you will be required to pay stamp duty and registration charges. So gift does not make a sense. 

2. Your mother should sell it and then the sale proceeds can be given to you.
Ashish Davessar
Advocate, Jaipur
18102 Answers
448 Consultations
5.0 on 5.0
1)the reason we advised against gift deed is because of high stamp duty / registration charges . later if you sell it additional stamp duty is payable 

2) your mother selling property and purchase in joint names joint  is better bet . your mother can then bequeath property to you under will . . you must be aware for will no stamp duty is payable . registration is optional . 

3) if on other hand gives you sale proceeds on sale of property she would have to pay substantial taxes . hence it is in your mother interest to reinvest sale proceeds
Ajay Sethi
Advocate, Mumbai
23240 Answers
1219 Consultations
5.0 on 5.0
as advised earlier
Rajeev Bari
Advocate, New Delhi
1506 Answers
92 Consultations
3.5 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
Ask a Lawyer

Property Lawyers

T Kalaiselvan
Advocate, Vellore
14026 Answers
127 Consultations
5.0 on 5.0
Ajay Sethi
Advocate, Mumbai
23240 Answers
1219 Consultations
5.0 on 5.0
Ashish Davessar
Advocate, Jaipur
18102 Answers
448 Consultations
5.0 on 5.0
Krishna Kishore Ganguly
Advocate, Kolkata
12113 Answers
231 Consultations
5.0 on 5.0
Devajyoti Barman
Advocate, Kolkata
5207 Answers
54 Consultations
4.9 on 5.0
Rajgopalan Sripathi
Advocate, Hyderabad
868 Answers
43 Consultations
5.0 on 5.0
Atulay Nehra
Advocate, Noida
435 Answers
15 Consultations
4.7 on 5.0
Shivendra Pratap Singh
Advocate, Lucknow
2752 Answers
41 Consultations
4.9 on 5.0
Ajay N S
Advocate, Ernakulam
1915 Answers
19 Consultations
5.0 on 5.0
S J Mathew
Advocate, Mumbai
1950 Answers
65 Consultations
5.0 on 5.0