Unlike a last will and will that pays your property after death, a deed of gift is usually used to transfer ownership of the money or property while you are still alive. […] the transfer of movable property by movable property, it can be used by a registered deed, as for immovable property or […] The list is not exhaustive, you may need other documents such as certificates relating to the value of your property, depending on your condition. A single gift is not enough to validate a gift, but the donor`s acceptance of it is just as important. Acceptance of the gift can be made either explicitly or implicitly. In addition, the donor must accept the gift during the life of the donor. In the event of death of the gift before the acceptance of the gift, the gift is presented as invalid. 1. You have the choice to give the property to whoever you want. If the ownership of the house is received as a gift by a parent, the first tax incidence occurs when you sell the property. Income tax fees are accounted for as fees paid by one of the previous owners for the property. Profits are treated as short-term or long-term, depending on whether the sum of your holding period and that of the previous owner who actually paid is greater than 36 months or not. If the holding period calculated above is less than 36 months, the profit from the sale of such real estate is treated as short-term and added to your normal income and taxed at the current slab rate.
However, if the holding period is longer than 36 months, you will have the advantage of indexing real estate costs and applying for an exemption from the payment of a 20% long-term capital gains tax by investing in a residential house or capital gains bonds of the Rural Electrification Corporation (REC) or the National Highway Authority of India (NHAI). […] Register your power of attorney with the nearest Sub-Registrar Office if it is a real estate transfer. […] A quitclaim certificate is typically used to transfer real estate between family members or co-owners of real estate, such as a husband and wife. For example, if you are married but are considering divorcing your husband or wife, and you both decide that only one of you should own the family home once the divorce is complete, a quitclaim certificate could be used to easily transfer your husband or wife`s interest in the property to you or vice versa. These two documents serve as an instrument for the transfer of ownership. The only difference is in the reflection. In the deed of sale, the property is transferred for a certain value, but in the deed of gift, the assignor does not take anything. 3. Wills are a favorable way to transfer your belongings, as you don`t have to pay stamp duty and registration fees.
In the case of minors Legally, a person who owns the property can offer a gift to any other person. An exception to this rule is where the donor or recipient is a minor. minors are not eligible for the contract; Therefore, they cannot transfer the property as a gift. A deed of gift in the case of a minor of the donor is not legally valid. If the donor does not accept the gift, the donor cannot force the recipient to accept the same. The act is inoperative, unless the place of the commission records the acceptance. Both Donor and Donee can contest the gift. In the event of the death of one of the parties, their legal heirs may take legal action.
The declarant shall ensure that stamp duty has been correctly affixed to the deed of gift/gift document at the time of notification. The amount of stamp duty and registration fees to be paid for a deed of gift is generally the same as for a regular sale. However, if the deed of gift is exported between certain close relatives, some States grant concessions on stamp duty. . . .