Gift deed formalities
Our real elder brother & sister will be, by executing Gift Deed, Gifting Shares to us (i.e. to their real younger sisters & brother). My Query: (a) What should be the appropriate denomination of Stamp Paper on which Gift Deed to be executed? (b) Is there any amount slab based on which denomination of Stamp Paper for executing Gift Deed is decided? (c) Is there any other duty / taxes to be payable to Govt.? (d) I would be much obliged to inform me the relevant provision of law which decides all factors? Sincerely, Aditya kumar Jain.
The procedure of gifting has three parts:
- Drafting the Gift Deed
Considering that the first two steps are already through in your case, you need to get the registration done under Section 122 of the Transfer of Property Act. Attestation by two witnesses is required during the registration process.
How to register a Gif Deed?
Registration of gift deed is done as per the provisions of the Registration Act, 1908. Common steps involved in registration process are:
- Valuation of property being gifted by an approved valuation expert.
- Payment of Stamp duty and transfer duty – Stamp duty varies for women and men (Slightly lower for women). Stamp duty also varies from state to state and for latest rates one should visit official state government website.
- Sign the Deed (both the Donor and the Donee) in the presence of 2 witnesses.
To know the stamp duty applicable in your state, kindly visit the below link:
 A gift of immovable property cannot pass any title to the donee unless it is registered
For Gift of Shares (pre-suming it to be listed), execute Gift Deed in respect of the shares with name of the Company and distinctive nos (if not in demat form)and notarise the same. No need to register as it is movable property.Fill up shares forms and depending upon the list price of such shares ,affix share transfer stamps on the same.Submit the forms and gift deed and original share certificates to the company for necessary transfer