Response

Section 123 of the Transfer of Property Act, 1882, provides that, for the purpose of making a gift of immovable 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 registration of a gift deed, as per the rules of the Maharashtra Inspector General of Registration and Controller of Stamps, in the district of Pune, Rs. 200 has to be paid as stamp duty, 1% of LBT (Local Body Tax) and Rs. 200 has to be paid as registration fee, if the gift is to be made to near relatives (husband, wife, son, daughter, grandson, granddaughter or wife of a deceased son).

If the gift is to be made to other relatives who are not the near relatives, 3% of the value of the property is to be paid as stamp duty, 1% of LBT (Local Body Tax) and 1% of the value of the property as registration fees, however, the value of the registration fees payable should not exceed Rs. 30000.

No such payment of 1% Local Body Tax is required by the Maharahstra Inspector General of Registration and Controller of Stamps, in case of release deeds.

Reference: Section 122 of the Transfer of Property Act, 1882 provides for the meaning of a gift.

Section 123 of the Transfer of Property Act, 1882 provides for the procedure of transfer of property through a gift.

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LAWAYZ-2023-835