Realty ( Property ) gifts come with a price tag

Real estate is mostly conceded on to family members or relatives either as a gift or under a will. A gift of immovable property, in legal parlance, is covered under Transfer of Property (TP) Act, 1883, Income Tax Act, Gift Act and Finance Act and in some case also has income tax implications.

"While gifting immovable property, which is more than 50,000 in terms of stamp duty, the transfer must be done through a registered instrument provided under the Registration Act by the donor and should be attested by at least two witnesses. The title of the ownership cannot be passed without a registered deed gift and donee cannot become a lawful owner."

The law also states that the donee has to pay taxes as defined in the Act, although, as per Gift Tax Act there are no gift tax implications on the real estate (property) transfer if the person is a relative as per the defined list. However, if donor is not related to the donee, then donee shall have to pay the applicable taxes.