Response

According to Article 34 of the Maharashtra Stamp Act, which was revised in 2017, stamp duty on gift deeds is 3 per cent of the property value. But, if the property is residential or agricultural, and is gifted without any payment to a blood relative, then the stamp duty is Rs 200.

Agricultural land is Ancestral property which cannot be gifted without the consent of all legal heirs and co- parceners. A farmer is entitled to have agricultural land in his/her name transferred as Land ceiling Act.Agricultural property CANNOT be Sold /Gifted to a non-agriculturist, under any pretext.

If you get property as a gift you won’t pay SDLT as long as there’s no outstanding mortgage on it. But if you take over some or all of an existing mortgage, you’ll pay SDLT if the value of the mortgage is over the SDLT threshold.

As per law, now a Trust can receive an agriculture land as gift, supported by the proper Gift Deed.Yes, trust can accept gift deed.As per Section 123 of the Transfer of Property Act, a gift of immovable property cannot pass any title to the donee unless it is registered.

In most cases, returns on farmland may not be as attractive as they are publicised. ÒBuying agricultural land can be a good investment for high net worth individuals and for those with surplus income,Ó said senior financial adviser Subba Rao Anupindi.

In Maharashtra, only agriculturists can purchase agricultural land. If either of a person’s parents or grandparents are agriculturists, then such a person is also entitled to the purchase. If a person holds agricultural land anywhere else in India, he can still be deemed an agriculturist in Maharashtra.

Reference: Transfer of Property Act
Maharashtra Stamp Act

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LAWAYZ-2023-785