How to transfer your property
Aug 12, 2013
Source : The Economic Times

 

DELHI: When it comes to transferring property, a sales deed may not always fit the bill, especially if you want to pass it on to relatives. In such cases, instruments like a gift deed or relinquishment deed can come to your rescue. However, blindly choosing either can lead to problems.

"You must understand the purpose of each document before getting it drafted. Know the benefits as well as drawbacks of each," says Vaibhav Sankla, director, H&R Block. "These documents are designed to play a specific role in the transfer of property and, hence, it is important to consult a lawyer," he adds.

Gift deed

This document allows you to gift your assets or transfer ownership without any exchange of money. To gift immovable property, you just have to draft the document on a stamp paper, have it attested by two witnesses and register it. Registering a gift deed with the sub-registrar of assurances is mandatory as per Section 17 of the Registration Act, 1908, failing which the transfer will be invalid. Besides, such a transfer is irrevocable. Once the property is gifted, it belongs to the beneficiary and you cannot reverse the transfer or even ask for monetary compensation.

However, if you want to gift movable property like jewellery, registration is not compulsory. At the same time, a mere entry in an account book is not sufficient to establish a transfer. Apart from physically handing over the property, you need to back it with a gift deed. The process is slightly different if you are gifting company shares. You will have to fill out the share transfer form and submit it to the company or registrar, and the transfer agent of the firm. Once again, get a gift deed drawn and executed to complete the transfer, but the document need not be registered.

Advantages: The biggest benefit is that there is no tax implication if you are gifting property to certain relatives (see box). However, you still have to pay stamp duty, which can vary from 1-8% for immovable property, depending on the state in which the transfer takes place. If you are gifting property to a non-relative, the stamp duty would be higher at 5-11%. You have to pay this duty even in the case of movable property. Expect to shell out 2-8% in case of relatives, and 3-8% for non-relatives. For physical shares, the stamp duty is 0.25%, but if these are in the demat form, you don't have to pay.

 

 

 

Latest Realty News

Realty sector can double its share in GDP to 13% by 2025
Aug 12, 2013
DELHI: The realty sector can more than double its contribution to GDP to 13 per cent by 2025 on rising housing demand, if the government removes bottlenecks in infrastructure, lowers borrowing cost and makes process of approvals shorter, global property consultant CBRE said.
Allottees may get DDA flats this month
Aug 12, 2013
DELHI: Allottees of Delhi Development Authority’s (DDA) Ganga block apartments in D-6 Vasant Kunj may finally get possession of their flats within this month.
Naredco members to visit Dubai to study real estate market
Aug 12, 2013
DELHI: A delegation of National Real Estate Development Council members, led by the Union Housing Minister Girija Vyas, will visit Dubai to study ways to develop the real estate sector here, according to a press release.
The new India wants luxury
Aug 12, 2013
DELHI: The rising demand for luxury homes has given a new face to housing concepts in India. Real estate developers are launching an array of luxury projects in metros and peripheral areas, and Tier II and III cities.
Air-purifying paints from Nippon
Aug 12, 2013
DELHI: After air conditioners, it’s now a wall paint that promises to improve air quality indoors.Nippon Paint (India) Pvt. Ltd, owned by the Nippon Paint group of Japan, has announced the launch of its next-generation paint, Odour-less AirCare. The product uses active carbon technology which cleanses the air by continuously absorbing the indoor air pollutant called formaldehyde, and converting it into water vapour, according to a company statement.
Alchemist Realty acquires Century 21 Properties India
Aug 11, 2013
DELHI: Alchemist RealtyBSE 4.83 % today said it has acquired 99 per cent stake in Century 21 Properties India Pvt Ltd.
Realty sector can double its share in GDP to 13% by 2025: CBRE
Aug 10, 2013
DELHI: The realty sector can more than double its contribution to GDP to 13 per cent by 2025 on rising housing demand, if the government removes bottlenecks in infrastructure, lowers borrowing cost and makes process of approvals shorter, global property consultant CBRE said.
CREDAI plans to move court against NGT sand mining ban
Aug 09, 2013
DELHI: Describing the National Green tribunal (NGT) populist ban in sand mining as arbitrary and anti growth , developer’s apex body CREDAI Chairman Lalit Kumar Jain, today indicated that the developer community is considering appropriate legal options to challenge the order. The nationwide stay on sand mining from river beds by the NGT adds to the ever increasing burden on the real estate industry.
Development work in 133 illegal Delhi colonies approved
Aug 09, 2013
DELHI: The Delhi government on August 7 granted permission for carrying out development works in 133 unauthorized colonies with immediate effect.
Green panel notices on concretization in Ghaziabad
Aug 09, 2013
DELHI: The National Green Tribunal on August 5 issued notices to the Union urban development ministry, the Ghaziabad Development Authority (GDA) and Ghaziabad Municipal Corporation taking cognizance of mindless concretization in urban areas which is significantly reducing the green cover in the city.

Latest Realty News Of State

Realty Talk's