When property is given to another person without any or little consideration, it is termed a gift. The property can be movable or immovable. A gift is valid if it is made voluntarily by the person giving the property and is accepted by the person to whom it is given. Let’s discuss how immovable property can be gifted to a near one.
The person giving the gift is known as the donor and the one receiving the gift is known as the donee.
If an immovable property is being given as a gift, it amounts to transfer of property and must be made in writing through a gift deed. This deed needs to be signed by the donor and the donee in the presence of two witnesses.
The deed must be registered with the local registration authorities. Both parties need to be present at the time of registration. Registration fees as stipulated must be paid. The following documents need to be submitted:
Purchase agreement with Index II of the property, society registration certificate, share certificate, apartment deed as the case may be
Aadhaar and PAN of both parties
Latest electricity bill and property tax paid documents with respect to the property
Stamp duty is applicable and must be paid as percentage of market value of the property. If the gift is being made to a close relative, a lower stamp duty is applicable, compared to normal transfer of property to some other person. If the gift is made to a specified relative, no tax will be applicable in the hands of the donee.
For the gift to be valid, the gift should be made and accepted during the lifetime of the donor and the donee.
The gift needs to be an existing property and not future property.