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Property Transfer Methods in India
In India, the property of an individual is transferred to another through a number of methods, such as Sale deed, Gift deed, Relinquishment deed, Will, Partition deed etc.
The transfer of immovable properties such as agricultural, residential, and commercial real estates falls under the purview of state laws. The change of ownership from one person to another can be done only through the process of property transfer.
Sale Deed
The most common method of property transfer is through the execution of a sale deed. When a person sells a property to another person for consideration, the sale deed is executed to record the transfer of the property.
Gift Deed
A Gift deed is used when a person voluntarily transfers his property to another without receiving any consideration from the other party. The gift deed is irrevocable. Unlike Sale deed, transfer of property through a gift deed does not involve taxes to be paid if the gift is made to a person who is a blood relative. In case of a gift over INR 50,000 made to a non-relative, the person receiving the gift have to pay tax on the received gift.
Relinquishment Deed
Relinquishment is renouncing or surrendering one’s right of ownership in favour of the co-owner. The stamp duty applicable in this case is only on the portion that is relinquished and not on the full property value. Transfer made through the relinquishment deed is irrevocable.
Will
Another way of property transfer is done through a Will. When a person receives a property through a Will he is not bound to pay any taxes. To complete the transfer of ownership of the property through a Will, the recipient of the property needs to apply to the concerned civil authorities with a copy of the Will, a death certificate, a legal heirship certificate, and such other documents as required.
Partition Deed
Transferring ownership under a partition deed is used in case of jointly owned property. A partition deed is mainly used to divide the property to define the share of each person.
