Hike in Stamp Duty Gifting to family in Maharashtra

Hike in Stamp Duty on Gifting Property

On Tuesday 16th, May 2017 the Maharashtra State Cabinet Ministers approved the proposal to increase the stamp duty on Gift Deed.
The Stamp Duty for Gifting immovable property within family is Rs. 200/- for Residential and Agriculture property.

A new amendment of Maharashtra Stamp Act, w. e. f. 07 th Sep, 2017

In related to Gift the Stamp Duty is 3% on Market Value has been introduced w.e.f. 07th Sep, 2017 Stamp Duty Amendment,

Relief in stamp duty for Gift.

Amendment in Maharashtra Stamp Act, w. e. f. 24th Apr, 2015

Maharashtra Government has given relief to citizen of the state by passing GR and making amendment in stamp act.

In Article 34, in column 2, after the existing proviso, the following proviso shall be added, namely:-
[Provided further that, if the residential and agricultural property is gifted to husband, wife, son, daughter, grandson, grand-daughter, wife of deceased son, the amount of duty chargeable shall be rupees two hundred.] w.e.f. 24th Apr, 2015 Stamp Duty Amendment, for the above particular information go to page number 8.

Transfer of Property Act, 1882

CHAPTER VII
OF GIFTS

Section 122. GIFT Defined

Gift is the transfer of certain existing moveable or immoveable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee. Acceptance when to be made. Such acceptance must be made during the lifetime of the donor and while he is till capable of giving, If the donee dies before acceptance, the gift is void.

Section 123

Transfer how effected.
For the purpose of making a gift of immoveable property, the transfer must be effected by a registered instrument signed by or on behalf of the donor, and attested by at least two witnesses. For the purpose of making a gift of moveable property, the transfer may be effected either by a registered instrument signed as aforesaid or by delivery.

Section 124

Gift of existing and future property.
A girt comprising both existing and future property is void as to the latter.

Section 125

Gift to several, of whom one does not accept.
A gift of a thing to two or more donees, of whom one does not accept it, is void as to the interest which he would have taken had he accepted.

Section 126

When gift may be suspended or revoked.
The donor and done may agree that on the happening of any specified event which does not depend on the will of the donor a it shall be suspended or revoked; but a gift which the parties agree shall be revocable wholly or in part at the mere well of the donor is void wholly or in part, as the case may be.

Note : As under section 122 of Transfer of Property Act, 1882 Gift is a transfer made voluntarily without any consideration.

Maharashtra Stamp Act, 1958.

Schedule - I, Article 34 Gift

Instrument of-not being a settlement (Article 55) or Will or Transfer (Article 59). The same duty as is leviable on a Conveyance under clause(a), (b), (c) or (d) as the case may be of Article 25, on the market value of the property which is the subject matter of the gift.

Table: 1

If the property is gifted to any person or in family relation, with any monetary consideration then the stamp duty is 5 % on true market value as applicable under article 34 (read with article 25) Maharashtra Stamp Act.


Donor Donee Stamp Duty on Market Value
Any person to Other Person 5%
Father in law to Daughter in Law 5%
Mother in law to Daughter in Law 5%
Uncle or Aunty to Nephew 5%

Table: 2
Explained for better understanding about the relation of the act.

If the any immovable property is gifted (without consideration) to family members in relation then the stamp duty is 3 % on true market value as applicable under article 34 Maharashtra Stamp Act, w. e. f. 07/09/2017 as Amendment of Maharashtra Stamp Act.

Donor Donee Stamp Duty on Market Value
Son to his Mother / Father 3%
Daughter to her Mother / Father 3%
Brother to Sister 3%
Sister to Brother 3%
Grand Son to Grand Father / Grand Mother 3%
Grand Daughter to Grand Father / Grand Mother 3%

Table: 3

If the Residential or Agriculture immovable property is gifted (without consideration) to family members in relation then the stamp duty is 200/- on true market value as applicable under article 34 Maharashtra Stamp Act w. e. f. 24/04/2015 as Amendment of Maharashtra Stamp Act.

Donor Donee Stamp Duty on Market Value
Father to his Son, Daughter, Grandson, Granddaughter Rs. 200/-
Mother to her Son, Daughter, Grandson, Granddaughter Rs. 200/-
Husband to Wife Rs. 200/-
Wife to Husband Rs. 200/-
Father-in-law to his Daughter in law (of deceased son only) Rs. 200/-
Mother-in-law to her Daughter in law (of deceased son only) Rs. 200/-

THE REGISTRATION ACT 1908 (16 OF 1908)
(As applicable in Maharashtra)

PART III
OF REGISTRABLE DOUCMENTS

Section 17 Documents of which registration is compulsory

(1) The following documents shall be registered. If the property to which they relate is situate in a district in which, and if they have been executed on or after the date on which, Act No. XVI of 1864, or the Indian Registration Act, 1866 (XX of 1866) or the Registration Act, 1871 (VIII of 1871) or the Indian Registration Act, 1877 (III of 1877) or this Act came or comes into force, namely:

(a) Instruments of gift of immoveable property;

RELIEF IN REGISTRATION FEE ON GIFT

Registration Fee on Gift Deed

Inspector General of Registration, Pune Maharashtra State has issused notification dated 31st March, 2016 related to Registration Fee on Gift, of residential or agriculture property gifted within family, the registration fee will be ₹ 200/- Only.

As per relation mentioned in Table 1 Registration fee will be 1 % on true market value or ₹ 30000/- whichever is less.

Credit Source: Registration and Stamp Department, Pune Maharashtra

Note: Those who had paid registration fee earlier on the gift can not claim the refund for the same.

LOCAL BODY TAX


Additional tax of 1% is charged because such provisions are made in the concerned local bodies Act, The Registration and Stamp Department are authorised to collect it and then passed on to the concerned local self government / bodies by the state government which are as follows

1) Maharashtra Municipal Corporation Act, (In other Municipal Corporation Limits (LBT) Local Body Tax) Mumbai City and Mumbai Suburban District are excluded.

2) Municipality / Municipal Council / Nagar Panchayat Limits

3) Zilla Prishad Limits

Local body tax circular dated 07th Nov, 2013

Nagpur Improvement Trust Limits etc. ( LBT is 1.5 % )

Note: Consult with the local authority before paying stamp duty.

Maharashtra Government had increased stamp duty by 0.50% for the Nagpur Improvement Trust (NIT) Nagpur Municipal Corporation (NMC) Council and Grampanchayat which is passed on to the civic bodies. So LBT is 1.5% in Nagpur.

GIFT DEED CALCULATOR

Calculate stamp duty, registration fee and local body tax (LBT) on Gift Deed on our latest Gift Calculator



Note: DISCLAIMER: The information of Gift (Stamp Duty) and its contents of this website are for general purpose and mere use and not constitute as a legal advice or remedies. We advise our users to take proper legal helps from Solicitor or an Advocate or with concern department. e-Stamp Duty Ready Reckoner will not be responsible for any kind of claims arising out of the use of any of the mentioned information’s provided on this entire site.



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We have explained in details how to calculate Market value of Property.

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Maharashtra State Government has provided various types of facilities to the public for the payment of Stamp Duty through various types of mode and has appointed Nationalized Banks, Schedule Banks, Private Banks and the Co-operative Banks which are authorized by Reserve Bank of India. With view that the facility of payment of stamp duty is made easily available to the public therefore different arrangements are in force.

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