GIFT DEED REGISTRATION IN INDIA:
This article explains you all you need to know about creating and registering a Gift Deed In India. The important aspects of a Gift Deed, Its Registration process and other details are stated here.
Steps Involved in Formation Of a Gift Deed:
- Formation of every Gift Deed requires a Lawyer who could guide you and provide you knowledge of the transfer of properties and Contracts.
- The second step involves the stamping of the gift deed in which a Stamp Vendor would help you in choosing the suitable stamp paper for you and the taxes to be paid simultaneously.
- After this you head to the Sub-Registrar Office.
The government has made the registration of a gift deed (only immovable property) compulsory. So, a moveable property can do away with the registration process.
“The Transfer Of Property Act, 1882, encompasses all that is to be ensured concerning the drafting of a Gift Deed, and The Registration Act, 1908 deals with the rules and legal limitations regarding the registration of all contracts and deeds in its entirety”.
STEPS TO REGISTRATION OF A GIFT DEED IN INDIA:
The parties involved in the gift deed are referred as the Donor and the Donee. The Donor is the one who gives away the property by way of a Gift Deed. And the Donee id the person who receives such gifted property from the Donor, hence is called a Donee.
It is important to make sure before you proceed towards the registration of the gift deed, that the deed is drafted in accordance with the law, and also the wishes of the Donor and the Donee. Below are the steps involved for registration of a gift deed:
- Signing of the Gift Deed: Both the Donor and the Donee in the presence of 2 witnesses are required to sign the gift deed and take the signed document to the nearest Sub-registrar Office. When talking about the ‘nearest’, it refers to the Sub-Registrar Office nearest to the immovable property.
- Registration Charges: Pay the registration charges. Calculate the Registration charges with the help of your Lawyer.
- Attestation of the Gift Deed: Attestation is a must. Pay the registration charges stipulated and get the gift deed attested.
IS THE REGISTRATION OF A GEED DEED IMPORTANT?
When a Gift Deed, movable or immovable, is formed will stand as an upholding or supporting evidence in court only if it is registered. Although the Gift Deed of a Movable property is not mandatorily required as per the Transfer of Property Act, so you may or may not register. However, it is important to remember that in order to make a Gift Deed legally valid and enforceable, the registration of it is a mandate.
On the other hand, the transfer of an immovable property under Chapter 17 (a) of The Registration Act, 1908 the Gift Deed instrument is made compulsory.
Also ,the registration the assent of both the parties, i.e., the Donor and the Donee.
There may be instances where you might want to gift an expensive car, villa or a property and chances though few, are the Donee may refuse to accept the Gift. Apart from rendering the Gift Deed void from the beginning, it cannot be registered.
Registration Charges In Metro Cities
REGISTRATION CHARGES OF A GIFT DEED IN MAJOR CITIES:
Valuation of the Property before Registration:
It is important that Before registration, the property has to be valued through a proper valuer who is specialised in determining the market price of a property. The registration charges therefore are based on the market price and will be levied accordingly.
|NEW DELHI||Registration fee is 1% of the total value along with ₹ 100 pasting charges.|
|BANGALORE||Registration Charges are 1% of the market value of the property.
Fixed Registration fee of ₹ 500
₹ 1,570 when included the charges of scanning, endorsement, comparing, filing, record of rights, and postage fee.
|MUMBAI||Registration fee chargeable when the Donee is a family member is ₹ 200
Registration fee chargeable when the Donee is not a family member will be 1% of the market value of the property or ₹ 30,000, whichever is less.
|CHENNAI||Registration fee chargeable is 1% of the market value of the property.|
MODE OF PAYMENT:
Depending on the state you reside in, you are requested to make payment either through Demand Draft (DD), Cheques or through cash at the respective Sub-Registrar Office.
WHEN GIFT DEED MADE TO SEVERAL DONEES:
When Registration of a Gift Deed is made to several Donees and where one of the beneficiary refuses to accept the Gift, the deed is considered void to the limits of the part of the property that was conferred to the party that refused the Gift. While for the rest, the registration is valid and holds value.