Transfer of property without consideration

867 votes

Under section 122 of the Transfer of Property Act, the immovable property can be transferred by way of executing a Gift Deed without sale consideration. Gift deed allows the person to exchange the ownership without any Sale consideration. Section 17 of he Registration Act 1908 mandates that the Gift Deed has to be registered before the concerned Sub-Registrar.If the Gift Deed is not registered the transfer will be invalid transfer. And stamp duty and Registration fee has also to be paid which as same as for the Sale Deed. The immovable property can be legally and lawfully transferred/conveyed only by way of Registered Deed of Conveyance. Transfer of property by way of Sale Agreement which indicates about the future payment (remaining sale consideration within stipulated time/at the time of registration), GPA and WILL Transfer do not convey title and do not amount to be a transfer of immovable property. such transactions are not valid mode of transfer of property. Hon'ble Supreme Court has given certain guidelines on transfer of immovable property in Suraj Lamp and Industries Vs State of Haryana. In the said case law it was discussed about the valid and invalid modes of transfer of immovable property. and it was also observed that if such transactions are opted with an intention to avoid payment of Tax those transaction are not valid. therefore the best way to transfer the immovable property without sale consideration is the by way of executing a Gift Deed. And whether this Partnership firm or Private Company ? whether it is registered is not clear.

Advocate S Mubarak Begum LawRato

899 votes

Transfer of immovable property without consideration or for inadequate consideration was chargeable to tax with reference to the stamp duty valuation as determined u/s. 50C of the Act. you can see the government guideline value for particular property and show that value and remaining value you can collect in cash. usually Government value always lesser then the actual market value. so you can safe some value

Advocate Shabuddin B S LawRato

188 votes

Section 122 of this Act allows the transfer of immovable properties through a registered gift deed. Immoveable property can be transferred without consideration.

Advocate Chikirsha Mohanty LawRato