Gift deed can be executed to transfer share of property

For the gift to be valid, the transfer must be effected by a registered and stamped instrument signed by you, accepted by your brother and attested by at least two witnesses


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My younger brother and I have inherited a house from our father and jointly own it now. However, I want to gift my share (50%) of the house to my brother. How do I go about it?

—Rajesh Kuntal

While answering the query, we are assuming that the house was the personal asset of your father (and not a joint family property) and that the house has duly vested in you and your brother in equal shares (pursuant to the Will or on intestacy succession).

If you wish to transfer your share in the house to your brother, you may do so by executing a gift deed in favour of your brother with respect to your half share in the house.

A gift of immovable property should be in accordance with section 122 of the Transfer of Property Act, 1882. For the gift to be valid, the transfer must be effected by a registered and stamped instrument signed by you, accepted by your brother and attested by at least two witnesses.

Stamp duty would have to be paid on the deed of gift prior to its execution, as per the relevant laws of the state where the property is situated and where the deed of gift is executed.

In some states, the stamp duty is lower in the case of gift to a close relative. For example, under the Maharashtra Stamp Act, 1958, the gift deed would have to be stamped under article 34 of Schedule 1. Since the gift deed is in favour of your brother, the said gift deed would fall under the first proviso of the above-mentioned article, which provides that the stamp duty chargeable would be 2% of the market value (ready reckoner value) of the property. However, stamp duty differs from state to state, so please check the stamp duty implications with your local lawyer.

In your case, since your brother already owns a half share of the house, and only your half of the house will be gifted to him, the stamp duty payable will only be on half of the market value of the property.

Further, the gift deed would need to be registered within a period of four months from the date of execution as per the applicable provisions of the Registration Act, 1908, with the applicable sub-registrar of assurances since the subject matter of the gift deed would be immovable property. Depending upon the state in which the property is situated, applicable registration charges will also have to be paid at the time of registering the gift deed.

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