Maharashtra: IGR proposes 3% stamp duty on property gift deed

Mumbai:Revenue Minister Balasaheb Thorat will review a proposal from the state Inspector General of Registration and Controller of Stamps to levy a 3 percent stamp duty on a gift deed for an ancestral residential or agricultural property.

"I will have to study the entire proposal and take a review before making a decision," he told TOI on August 28. At present, the stamp duty is a mere Rs 200 for a gift deed of such a property when transferred to a blood relative.

According to the Inspector General of Revenue and Controller of Stamps (IGR) Omprakash Deshmukh, the amendment proposal has been sent to the state government for its assessment

The IGR's proposal was prompted by the many squabbles within families over a gift deed which needs the donor to make the deed and the blood relative donee's consent to accept it. No permission is required from the other kin.

According to Article 34 of the Maharashtra Stamp Act, which was revised in 2017, stamp duty on gift deeds is 3 percent of the property value. But, if the property is residential or agricultural, and is gifted without any payment to a blood relative, then the stamp duty is Rs 200.

The registration department's proposal has requested the state government to amend the act and make the stamp duty for a gift deed to blood relatives also at 3 percent.

"A gift deed is the preferred option instead of the partition clause under Article 46 of the act where the stamp duty remains the same at Rs 200, but permission of all the family members is required. If the current proposal is accepted, people would probably shift to the partition clause to assign their properties and seek approval from the family members. It will reduce litigation," a revenue official said.

In 2017, the BJP-Sena government had revoked a decision to hike stamp duty on gift deeds two days after the state cabinet had passed it.

The state cabinet had amended the Maharashtra Stamp Duty Act to hike the stamp duty on gift deeds from Rs 500 to 3% of the property value.

Officials from the registration department told TOI that the current proposal would have to go through a long process of getting sanctions from the legal department and several other departments.

The increase may pose other problems as the amount run into lakhs of rupees, and sometimes be unviable for old properties.

Nisha Nambiar, TNN, Pune

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