Gifting has always been a heartfelt way to express love and gratitude toward parents. If you are a Non-Resident Indian (NRI) looking to gift immovable property to your parents in India, the good news is that it is legally permissible and involves a simple process. Additionally, the stamp duty and registration fees for a gift deed are relatively low compared to a regular property transaction.
Three Simple Steps to Gift Immovable Property in India
As an NRI, you can follow these three key steps to gift immovable property to your parents:
- Execute a Power of Attorney (POA) – If you are unable to be physically present in India, you can authorize a trusted representative, typically a family member, through a General Power of Attorney (GPA).
- Pay Government Charges – This includes the applicable stamp duty and registration fee for the gift deed, which varies by state.
- Gift Deed Registration – The gift deed must be drafted, signed, and registered with the sub-registrar’s office to make the transfer legally valid.
Real-Life Example: Mr. Chaitanya’s Gift to His Father
To provide better clarity, let’s consider a real-life scenario:
Mr. Chaitanya, an NRI residing in New Zealand, owns a 2BHK flat in the Aditya Vintage Apartment complex in South Bangalore. He wishes to gift this property to his father, Mr. Ramayya. Here’s how he completed the process:
- Executing the General Power of Attorney (GPA)
Since Mr. Chaitanya was abroad, he executed a General Power of Attorney (GPA) in favor of his father, Mr. Ramayya, authorizing him to complete the property transfer on his behalf.
Refer to below GPA Image:
2. Payment of Government Charges
- Ramayya paid the necessary stamp duty and registration fees for the gift deed. Refer to below payment receipt
3. Gift Deed Registration
- Using the GPA, Mr. Ramayya proceeded to register the gift deed.
- He signed the gift deed both as the donor (on behalf of his son, Mr. Chaitanya) and as the donee (himself, the recipient of the gift).
Refer to below Registered Gift Deed
With these steps completed, the property was successfully transferred from Mr. Chaitanya to his father, Mr. Ramayya.
NEED ASSISTANCE?
We offer end-to-end support for NRIs, from executing a General Power of Attorney (GPA) to completing gift deed registration in India.
- Email: pgnproperties@gmail.com
- WhatsApp: +91-9742479020
FAQs:
- Can an NRI gift immovable property to parents in India?
Yes. An NRI can legally gift residential, commercial, or land property to their parents in India, subject to stamp duty and registration requirements.
- Is physical presence required for NRI gift deed registration?
No. If the NRI cannot be in India, they can execute a General Power of Attorney (GPA) in favour of a trusted representative, usually a family member, to complete the registration.
- What are the government charges for a gift deed in India?
Stamp duty and registration fees for a gift deed vary by state. They are usually lower than charges for regular property transactions.
- Is a registered gift deed mandatory for property transfer?
Yes. Registration of the gift deed with the sub-registrar is mandatory for the transfer to be legally valid.
- Can the donor and donee be the same person during gift deed registration?
Yes, in cases where the donor authorises the donee through a GPA, the same person can sign on behalf of the donor and as the donee.