What is the Penalty of not paying Stamp Duty on the Gift Deed?
It is expected that stamp duties for gift deeds should be paid on time. In fact, if one fails to duly stamp the document which is to be stamped, he/she can invite monetary fines. If there is a delay in the payment of stamp duty on gift deeds, the defaulter will incur a cost of 2 per cent per month, which can at the maximum go up to 200 % of the deficit amount of the stamp duty.
Rates of Stamp Duty On Gift Deeds In Some Major Cities Of India
The stamp duty for gift deeds rates vary from state to state. Here are the stamp duty rates for some major cities-
The stamp duty on gift deeds rates vary for men and women in Delhi. For the women, there is a 4 percent charge of the market value of the property. As for men, the rate for them stands at 6 percent. And in case of joint owners (men and women), this rate stands at 5 percent.
As per the rules in Kolkata, the stamp duty on gift deeds charge when the gift is provided to any other person (other than the family member), the stamp duty rate is 5 percent in Panchayat (rural) areas and 6 percent in municipal, corporation and urban areas.,
In case, the property’s market value is more than Rs 1 crore , then an extra 1 percent stamp duty is charged in both urban and rural areas.
Also read Duplicate Land Registration Document Process.
When a doner gives a property as a gift to a donee, who is not a family member, the stamp duty on gift deed is charged at a rate of 5 percent of the market value of the property. In case, the doner gifts the property to a family member, then the following rates apply:
Suppose the property is situated within the Bangalore Metropolitan Regional Development (BMRD) Authority limits, then the charge applicable is Rs 5,000.
In case, the property is located in the limits of (I) City or Town Municipal Council or (II) Town Panchayat area, then the charge would be Rs 3,000/-.
In case, the property lies in the limits other than the limits mentioned in (I) and (II), then the charge is Rs 1,000/-.
When it comes to the commercial capital of India, Mumbai, the stamp duty on gift deed varies in accordance with the type of the property being gifted, for instance: -
For the land used for agriculture and residential land, the stamp duty on gift deed is Rs 100.
When an immovable property is gifted to a close relative like a family member, 3 percent of the market value of the property is charged as stamp duty on gift deed.
If the property is being given by someone other than a family member, then the stamp duty will be 5 percent.
The stamp duty on gift deed in Hyderabad varies as per the relationship between the donor (the person who is gifting the property) and the done. These are as under:
In case, the donor gifts the property to a family member, then the stamp duty on gift deed amounts to 1 percent of the market value of the property.
If there is any other gift, it amounts to 4 percent of the market value.
You may also read Land & Property Registration: All You Need To Know.
As for the Union Territory of Chandigarh, the stamp duty charges on gift deed stand at 6 percent of the market value of the property. Besides, no application fee is charged if the property is given to any blood relative during the lifetime of the donor.
As for Jaipur, the stamp duty charge on gift deed is a uniform 5 percent of the total market value of the product irrespective of whether it is within the family or outside the family.
In Chennai, the stamp duty charges for gift deeds for family and blood relatives is at the rate of 1% of the market value of the property, whereas, the rate is 5% when the property is gifted to any other person.