Legal Guide

Gift of Immovable property from father to son

by Bhavya Choudhary · 3 min read

Gift of Immovable property from father to son

The property has often been a source of conflict amongst family members. The Gift of Immovable property from father to son might be problematic if the father has to make decisions and the distribution is not equal. In property disputes, it is generally important to get prompt legal consultation and organize all papers. 

The transfer of or gift of immovable property from father to son is a gift. According to the Transfer of Property Act, the transfer of real estate as a gift must be shown by a registered instrument (gift deed registration) signed by the donor. The gift deed is subject to the same amount of stamp duty as a normal sale. However, there is an exception for some relations, which includes the gift of immovable property from father to son. 

Gift of immovable property from father to son

In the case of the gift of immovable property from father to son, the father’s right to dispose of his property must be handled in accordance with the law: 

  • Statutory regulations
  • Personal laws

The father is free to dispose of self-acquired property throughout his lifetime, provided his children have no claim to it. If he dies without a will, all of his children are legally entitled to inherit his fortune and they may also seek legal consultation for the same.

However, if the property is ancestral, he cannot dispose of it as he pleases since all of his offspring have a portion of it, and his sons might claim the division.

What is Self-Acquired Property?

A person’s acquisition of property:

  • Purchased using own funds
  • As a reward
  • By use of a testamentary document, such as a will
  • Share of ancestral property obtained after division or share of any other property acquired as a legal heir; received as a legal heir.
  • When a Hindu dies intestate, his property devolves in accordance with Section 8 of the Hindu Succession Act, and any property that falls into the possession of a lawful successor is deemed self-acquired.

In the case of self-acquired property, a gift of immovable property from father to son can be made.

Distribution of a father’s self-acquired property and Gift of Immovable property from father to son

A parent is within his rights to bequeath the self-acquired property to just one of his children. This is the gift of immovable property from father to son in the case of self-acquired property. 

  • During his lifetime, his offspring have no claim to the property. He may either donate the property to his kid or leave it to him in his will.
  • However, if another son contributed to the acquisition of the father’s self-acquired property and can demonstrate his involvement, he has a claim to the property. This will not be the gift of immovable property from father to son. 
  • In such a case, a parent cannot transmit the self-acquired property to one son while excluding the contributing son.

What is the inherited estate?

  • The property that has been handed down unaltered through four generations of male ancestry is known as ancestral property. The property must have four generations of ownership. The property is inherited by a descendant.
  • The gift of immovable property from father to son cannot constitute inherited property.
  • The property inherited from the father, grandpa, or great-grandfather is referred to as ancestral property.
  • The property inherited from a mother, an uncle, a grandmother, or any other relative is not considered ancestral property.
  • No ancestral property can be said to be the gift of immovable property from father to son. 

Distribution of a father’s inherited property

  • All sons have a birthright to an ancestral property; consequently, the father cannot surrender the property to one son to the exclusion of the others. In accordance with a 2005 change to the Hindu Succession Act, daughters are coparceners and have a claim to the inherited property.
  • A parent cannot freely transfer the family estate to one son. In accordance with Hindu law, an ancestor’s property may only be bequeathed under specified conditions, such as hardship or religious reasons. Otherwise, the ancestral property cannot be passed only to one kid.
  • Any self-acquired property may be given or transferred to whoever the testator or donor desires, without the agreement of anybody else. However, as legal heirs, the mother and daughters might contest the aforementioned gift transaction.
  • For Muslims and Christians, the notion of ancestral property does not exist. According to the limit permissible by Muslim personal law, the property may be bequeathed to one son.
  • The gift of immovable property from father to son does not constitute the inherited property of the father.

Regardless of the form of acquisition, Christian property is deemed self-acquired, and rights are controlled by the Indian Succession Act of 1925.

How is the gift of immovable property from father to son made?

The gift of immovable property from father to son is made by gift deed registration. It will allow the father to gift immovable property from father to son. Let’s now discuss the process of gifting immovable property from father to son. 

  • Under the terms of the Transfer of Property Act, the transfer of property as a gift must be supported by a registered document or instrument, signed by the father (or on his behalf), and witnessed by at least two eyewitnesses.
  • If you want the transaction to be legally binding, you cannot just decide to give property without completing the necessary requirements.
  • You must register the gift deed at the office of the sub-registrar in accordance with the prescribed process.
  • The registrar then verifies that the appropriate stamp duty has been attached to the document/gift deed when you present it for registration.
  • Registration fees and stamp duty for a gift deed are typically the same as those for a sales transaction.

Alternatively, the father may pass the property through a will. In this option, the father writes the son’s name on the will. The son inherits the property at the death of the father. 

Conclusion

The gift of immovable property from father to son must be recorded, signed by the donor or on his or her behalf, and witnessed by at least two witnesses. Typically, the donor is not required to pay tax on the donated property. 

In some instances, however, beneficiaries are taxed under the Income Tax Act’s “Other sources of income” heading. You cannot give up all of your possessions. You may dispose of your self-acquired property if you are a Hindu. Likewise, if you are a coparcener, you may transfer your coparcenary interest in a property provided certain requirements are met.

The property has often been a source of conflict amongst family members. The Gift of Immovable property from father to son might be problematic if the father has to make decisions and the distribution is not equal. Therefore, it is recommended to consult a lawyer to get your gift deed registered.

Bhavya Choudhary

Written by

Bhavya Choudhary

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