Sale / Gift / Relinquishment DeedSale Deed / Gift Deed / Relinquishment Deed - TPA 1882 / Registration Act 1908

An Agreement to Sell (also called Agreement for Sale) is a contract to transfer property in the future on fulfillment of conditions - it does NOT transfer title. A Sale Deed (TPA S.54) is the actual transfer of title to property - it transfers ownership from seller to buyer upon registration. Suraj Lamp (2012 SC): only a registered sale deed transfers title. Agreement to sell only creates a right to sue for specific performance. Always insist on a registered sale deed - never rely on just an agreement.

Delhi stamp duty on sale deed: Women buyers: 4%. Men buyers: 6%. Joint purchase (man + woman): 5%. Calculated on circle rate or actual consideration, whichever is higher. Additionally: registration fee of 1% of property value (subject to maximum cap). Stamp duty is paid at an authorised bank or through e-stamping/SHCIL before or at the time of registration. Inadequately stamped documents are inadmissible in evidence.

Under TPA S.126: a gift of immovable property is irrevocable once it is accepted by the donee. The donor cannot unilaterally revoke or cancel the gift. Exceptions: (a) the donor specifically reserved the right of revocation in the deed itself; (b) the gift was obtained by fraud or undue influence - court can set it aside. Renikuntla Rajamma (2014 SC) confirmed this principle. Gift deeds executed under pressure or by elderly persons are often challenged in court on grounds of fraud/undue influence.

A Relinquishment Deed is a document by which a co-owner of property relinquishes (gives up) their share in jointly-held property in favour of the other co-owners. Common uses: (a) when co-heirs who inherit property jointly want one heir to take full ownership; (b) when a family member wants to give up their share without selling to a stranger. Important: relinquishment can only be in favour of existing co-owners - cannot relinquish in favour of a stranger. Stamp duty is lower than sale deed.

(1) Advocate prepares the deed; (2) Calculate stamp duty (women 4%/men 6%); (3) Pay stamp duty at bank or e-stamp; (4) Book Sub-Registrar appointment online at igrsdelhi.gov.in; (5) Upload deed document online before appointment; (6) All parties (buyer, seller, 2 witnesses) appear at Sub-Registrar with Aadhaar; (7) Sub-Registrar verifies identity by biometric; (8) Both parties sign and give thumb impression in Registrar's presence; (9) Document registered and returned same day or next working day.

Before purchasing: (1) Title chain for 30 years - all sale deeds, gift deeds, wills in succession; (2) Encumbrance certificate from Sub-Registrar - checks for mortgages, charges, litigation; (3) Mutation/jamabandi records from Tehsildar; (4) MCD No-Dues Certificate; (5) Electricity dues clearance; (6) Society NOC and share certificate (for society flats); (7) Building plan sanction from MCD/DDA; (8) Check for pending litigation at District Court caveat register; (9) DDA allotment letter and mutation (for DDA flats). Never purchase without proper title verification.

Under Income Tax Act S.194IA: if property value exceeds Rs.50 lakh - the buyer must deduct TDS at 1% of the consideration from the seller's payment. Steps: (1) Deduct 1% TDS from payment to seller; (2) Pay TDS online through Form 26QB at TIN portal within 30 days; (3) Issue TDS certificate (Form 16B) to seller; (4) Seller claims credit in their income tax return. Failure to deduct TDS: buyer is liable for interest and penalty. This applies to all residential and commercial property purchases above Rs.50 lakh.

Gift Deed: transfer of property during the donor's lifetime - takes effect immediately upon acceptance. Irrevocable once accepted. Must be registered (immovable property). Stamp duty payable. The donor does not retain ownership after gift. Will: transfer takes effect only after the testator's death - not during lifetime. Revocable any number of times before death. Registration optional (not compulsory). No stamp duty. The testator retains full ownership until death. Key: if you want to transfer property now - use a gift deed. If you want to transfer after death - use a will.

Yes - a minor can receive property as a gift. Acceptance on behalf of the minor: (a) natural guardian (parent) accepts on behalf of the minor; (b) if no guardian - court may appoint guardian for this purpose. The minor's guardian cannot alienate the gifted property without court permission (HMGA S.8). When the minor attains majority (18 years) - they can deal with the property independently. Gift to minor should specifically name the guardian who accepts on the minor's behalf.

Short-Term Capital Gain (STCG): property held less than 24 months - taxed at normal income tax slab rates. Long-Term Capital Gain (LTCG): property held 24+ months - 20% with indexation benefit. Exemptions: (a) S.54: invest LTCG in purchase/construction of residential property within 2/3 years; (b) S.54EC: invest LTCG in specified bonds (NHAI/REC) within 6 months. Gift to relative: no capital gains at time of gift - but recipient inherits donor's cost and holding period. Always consult a CA for capital gains calculation.