Gifting of a property may be a sore experience!

The income tax law is kind enough, it has exempted the gift to close relatives from  income tax.

The Gift of immovable property to close relatives can be done on a stamp paper of Rs 500/- only.

The Government of Maharashtra has given concession in stamp duty and cess in respect of sale of immovable properties in wake of the Covid pandemic.  A news flash says that the sub registrar is still charging 1% cess on transfer of property by way gift to close relatives as there is no mention about concession in cess in the transaction of Gift of immovable property to close relatives. 1% of the value of property is a big amount (a cost of love)!

Is it really wise to go about the GIFT route? A dialogue by Kaveri from a legendary Marathi play ‘Natasamrat’ is relevant here; “Samorchyala tat dyava pan basaycha pat devu naye.” Meaning that be careful when you give away what belongs to you.

“Will” could be a best way to bequest the property.