Which one is better sale deed or gift deed?

1) A gift deed made in favour a blood relation is far more advantageous than making a sales deed , as in case of former transfer of property will not attract any revenue stamp duty.

What is difference between sale and gift?

DISTINCTION BETWEEN SALE AND GIFT. — In sale and gift both, there is transfer of ownership of an immovable property. But in sale the ownership is transferred in exchange for a price i.e. the consideration is money. In gift, the ownership of an immovable property is transferred without any kind of consideration.

What is sale deed and gift deed?

How is a sale deed different from a gift deed? Gift deeds and sale deeds are used for property transfer. Sale deed includes the exchange of money and gift deed does not include the exchange of money.

What is the purpose of a gift deed?

The purpose of a gift deed is to allow a donor to freely give a solely owned property to someone else without any compensation in return. When quitclaim deeds are used to transfer property, there may or may not be a payment.

Is there any tax on gift deed?

Income tax on gift deed Consequently, the gift of any asset (whether movable or immovable) made to certain specified relatives, is fully exempt from tax in the hand of the recipient, without any upper limit.

What are the charges for gift deed?

Procedure for Gift Deed Registration

STATE/UT	Registration Charges
Karnataka	For the transfer to a non-family member
5\% on the market value of the property
Andhra Pradesh	Stamp Duty: 2\% of the market value of the property
Registration Fee: 0.5\% of the market value of the property

Is sale deed the same as gift deed?

Like a sale deed, a gift deed contains details of the property, the transferrer and recipient. But instead of a sale consideration in a sale deed, a gift deed allows you to transfer ownership without any exchange of money. Mutation is necessary to transfer utility connections in the name of the recipient.

What is the cost of gift deed?

Gift Deed to Family Member The stamp duty and registration fee on gift deed of immovable property are fixed stamp duty of Rs. 1000 + surcharge + cess and fixed registration fee of Rs. 500.

Should gift deed be registered?

Registration of the gift deed is mandatory when the donor wishes to gift immovable property to the donee. A gift deed must be executed out of love and affection towards the donee without any consideration in return.

Is gift deed is equal to registration?

The transfer of property by a gift deed is voluntary and without any consideration. Under Section 117 of the Registration Act, it is compulsory to register the same if you gift an immovable property.

What does it mean when a gift deed is given?

Depending on your state, a gift deed may be given to indicate transfer of property without monetary exchange. Tax deed. When a property is foreclosed upon, a tax deed is issued indicating its sale. In lieu of foreclosure, certain deeds may be issued that prevent proceedings and terminate the loan debt.

What is the difference between Sale Deed and sale of property?

The main difference is that the Sale Deed transfers the legal title of property from one person to another in case of a sale, i.e. the first party actually sells the title of the property to the second party in return of a specific amount of money.

What is the difference between a gift and a sale?

The moment a lawful gift transaction is complete, the donor divests himself of any proprietary right in property gifted. On the other hand, a sale is a transfer of property, which can be effected by a registered instrument on payment of consideration.

When to use a bargain and sale deed or grant deed?

Bargain and sale deed. Used in transfer of property when there has been a court seizure or an estate sale, the bargain and sale deed does not guarantee that a property is free from debts or liens. Grant deed. When interest in a property will be exchanged or forfeited for an established price, a grant deed may be issued.