Is Stamp Duty Payable on Transfer of Property to Spouse?

Is Stamp Duty Payable on Transfer of Property to Spouse?

Transfer of property to one’s spouse is one of the most common transactions in the real estate industry. There are four ways in which an immovable property can be transferred to a spouse. Let’s find out how.

Transfer of Property to A Spouse as A Gift Deed

Immovable property can be transferred to a spouse via a gift deed. In a gift deed, the giver receives no compensation. A gift once given cannot be revoked, unless taken under fraudulent circumstances.

The stamp duty to be paid in case of transfer of property to the spouse as a gift varies from state to state. Here are gift deed stamp duty charges in some of the states:

  • New Delhi: 6% (for women) or 4% (for men) of the property’s market value
  • Maharashtra: Rs. 200 stamp duty and Rs. 200 registration charge.
  • Uttar Pradesh: 2% of the property’s market value.
  • West Bengal: 0.5% of the property’s market value.
  • Karnataka: Registration fee of Rs. 500 + Rs. 1000 stamp duty + surcharge and cess
  • Madhya Pradesh: 2.5% of the property’s market value.
  • Rajasthan: 1% of the property’s market value.

Transfer of Property to A Spouse Via a Sale Transaction

If the property is sold to a spouse, it will be considered as a standard real estate sale transaction regardless of the relation between the buyer and seller. The stamp duty charges vary according to cities, areas, and zones. Here are some examples:

  • Bengaluru: Stamp duty is 5% of the property’s market value.
  • New Delhi: Stamp duty of 4% (for men) or 6% (for women) of the property’s market value is applicable.
  • Chennai: Stamp duty is 7% of the property’s market value.
  • Mumbai: 4% of the property’s market value or the agreed value.

Transfer of Property to A Spouse Through Execution of a Will

In case of transfer of property to your spouse via a will, there is no stamp duty to be paid. However, it is important to note that in the case of a will, the property transfer will occur only after the death of the person executing the will.

Transfer of Property to A Spouse Through Inheritance

In case no will has been written or executed, the spouse is entitled to a percentage or the entire share of a property, after the death of their partner. There is no stamp duty to be paid on the transfer of property to the spouse through inheritance. However, there are laws that establish the share of property the spouse will inherit.

Parting Thoughts

If you are looking to secure your and your spouse’s future, buying a house would be a great investment. With low and affordable home loan interest rates available, buying a house on a home loan has never been easier.

Just check your home loan eligibility with a reliable finance provider, select a term plan and instalments as per your convenience with a home loan EMI calculator, and secure your family’s present and future.