Gift deed to father

Tax queries 1143 views 5 replies

ashok

25 Points Posted on 27 June 2014

I am located in Bangalore, i bough a flat and want to gift it to my father.

Is it tax free ? if not then how much tax need to paid?

How much need to paid for gift deed registration charges (stamp and registration) ?

In case I stay in same property then Can I claim HRA benefit to save tax after doing gift deed to my father?

Replies (5)

Mihir

Wealth Manager

5293 Points Posted on 27 June 2014

No, there is no tax payable for gifting a property in favor of your father. However, you will be required to pay stamp duty on it and register the gift deed. I am not sure but stamp duty would be about 2% of the value of the property and Rs. 30,000/- for the registration. After gifting it, you may reside in the same flat and enter into a rent agreement with your father and pay rent to him, and claim HRA.

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Posted on 27 June 2014

i agree with answer of mihir.

N V SRIPATHI BHAT

AGM (retd)

32 Points Posted on 27 June 2014

Dear Ashok,

Gift deeds within family, including parents are attracting limited amount of Stamp & Regn fees in Karnataka.

As per Govt.of Kar. notification the following is the amount :

Levy of Stamp Duty and Registration Fee on Some Important Documents at a Glance

Sl. No.	Descripttion of document	Article No. under which Stamp Duty Chargeable	Amount in Rupees	Article No. under which Registration Fees payable	Amount in Rupees
9	Gift	28
	(i) If Donee is not a family member	28(a)	@ 5 % on the market value+ Surcharge + cess	I	1%
	(ii) If Donee is a specified family member	28(b)	A fixed duty of Rs.1000 + surcharge & cess	I-Note-11	Fixed fee of Rs.500

Hope this will meet yr requirements.

swati chhatlani

CA Practice

24 Points Posted on 28 June 2014

As he is giving flat as a gift to his father..so the person who is giving gift will be treated as a deemed owner of the property..so how can he claim HRA?? to take hra benefit u should gift money to his father & let him buy flat in his own name...

Mihir

Wealth Manager

5293 Points Posted on 29 June 2014

Gift can also be of immoveable property and if the property is transferred with a stamped and registered gift deed, then the donee become a owner of the property.