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Value of stamp paper for Gift Deed

Manoj Aggarwal (CA) (86 Points)

05 August 2009

What would be the value of Stamp paper for a Gift deed for gifting Shares in Delhi ?

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15 Replies

CA CS Amit Borade (Chief Accountant) (2828 Points)
Replied 05 August 2009

Hi Manoj..

Value of Gift Less than Rs.5,00,000 then Stamp paper of Rs. 100

Value of Gift more than Rs.5,00,000 then Stamp paper of Rs.500

O.D.SHARMA (DGM-F & A) (1734 Points)
Replied 06 August 2009

Good fo knowledge

Manoj Aggarwal (CA) (86 Points)
Replied 06 August 2009

Dear Amit,

As per Stamp duty rates applicable in Delhi, the rate of stamp duty for a Gift deed is 8% of value.

Please let us all know the amendment or notification by which it has become Rs. 100 for a gift upto Rs. 5 lacs as stated by you.

Awaiting your response,

Regards

RAJ KUMAR GOEL (PARTNER) (51 Points)
Replied 07 August 2009

Actually, it is not that stamp duty is payable on gift deed, which can be on simple paper, both signed by donor and donee, with list of shares, and subsequently transferred to donee. If shares are in physcal form the 1/2 % of market value's stam duty shall be charged

Thanks

CA CS Amit Borade (Chief Accountant) (2828 Points)
Replied 07 August 2009

Dear Manoj What u exactly want Stamp Paper Cost or Stamp Duty???

Manoj Aggarwal (CA) (86 Points)
Replied 07 August 2009

1.Stamp paper cost are required and purchased for payment of specified stamp duty. When you buy stamp paper of rs. 100, it means you are discharging your liability for payment of requisite stamp duty as per law. I hope you are clear.

2. Please give for information of members at large, the legal basis for your satement given below :

"Value of Gift Less than Rs.5,00,000 then Stamp paper of Rs. 100

Value of Gift more than Rs.5,00,000 then Stamp paper of Rs.500."

Otherwise, it may mislead CAClub Members.

3. Refer Rates of Stamp Duty applicable for Delhi. It has en entry for Gift which in turn refers to Conveyance which is 8%. If you do not prepare a Gift deed, no stamp duty is payable under the said clause.

4. Share transfer stamp duty for shares transfer is 0.25% ( and not 0.50 %) of value of shares ( in physical form).

1 Like

CA CS Amit Borade (Chief Accountant) (2828 Points)
Replied 07 August 2009

Hi Dear

U have to write the gift deed on Stamp Paper of Rs. 100 or Rs. 500. & at the time of executon (means at the time of transfer) of it u have to pay stamp duty . This is as per Bombay Stamps act.

Hope u clear...

Manish Jain (Manager) (32 Points)
Replied 24 November 2010

Dear Senior Members,

Please let me know the value of stamp paper required for gift deed of amount of Rs 5 lakhs or below, as it was told to me that Rs 10 stamp paper is enough.

Gift is between Husband and wife,

Regards,

Manish

Nitin Mehta (Advocate) (27 Points)
Replied 30 August 2011

Hi Guys,

Its very late for me to contribute to this dead chat, but in case if it is helpful to anyone.

Manoj and Amit both are right.

Amit is right since Gift deed of shares is to be executed on a stamp paper of Rs. 100 only.

Manoj is right when he says that on actual phsysical tranfer by executing share transfer form, the stamp duty required to be paid is 0.25% of the value of shares transfered as per article 62 of Indian Stamp Act, which is applicable to Maharashtra and Gujarat and probable Delhi aswell (need to check). Bombay stamp Act has no rates so far as transfer of shares is concerned as it is part of entry 91 of VIIth schedule of Constitution of India on which Indian stamp act is applied.

Manoj is again right to say that the entry of Gift in Delhi had a rate of 8% which is the rate of conveyance. But that entry only is applicable to instrument. The def of instrument excludes tranfer of share. Thus the entry of Gift is not applible to a gift deed for transfer of Shares. Accordingly the stamp duty applicable shall be the prevailing stamp duty to be put on any ordinary declarration, which presently in Gujarat is Rs. 100

Trust it is of some assistance

Regards,

Nitin Mehta

CA, LLB

(Advocate)

1 Like

Nitin Grover (Manager) (21 Points)
Replied 16 September 2011

Dear Members,

Could you please let me know the value of stamp paper required for gift deed in respect of Gift of Rs. 10 lakhs received through a Demand Draft ?

Also let me know whether One Stamp paper is required for all the gift transactions that took place during the year (OR) do we need separate Stamp papers for each such transaction.

Gift is between Father and Daughter.

Regards,

Nitin

parveen sharma (returns filling) (32 Points)
Replied 25 February 2016

What would be the value of Stamp paper for a Gift deed for gifting Funds from My Real Brother to my spouse around 10 Lakhs or Above in New Delhi ?

BRIJGOPAL KANKANI (CA Job) (23 Points)
Replied 11 July 2017

HOW MUCH VALUE OF STAMP PAPER REQUIRED FOR GIFT DEED OF TRANSFER OF MONEY OF RS. 2.5 LACS BETWEEN RELATIVES.

REGARDS

BRIJGOPAL KANKANI

nitin (PARTNAR ) (2 Points)
Replied 21 May 2018

BUT SIR,

THE EXPENSES OF PURCHASING STAMP PAPER WHICH PARTY BEARED ??

Sandhya S (2 Points)
Replied 12 September 2019

If in a property more then one member is property holder and they wanted give there share of property to one of the member permanently then we should do gift deed or share of transfer?