D.Dis.No. 36115/P1/2018, Gift Deed Stamp Duty Revision
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued D.Dis.No. 36115/P1/2018 dated 27 August 2018, allowing Sri Sathya Sai Central Trust's revision petition concerning a gift deed registered at the Sub Registrar Office, Tiruvottriyur. The authority set aside the deficit stamp duty and penalty imposed by the District Registrar, Chennai (North), and held that the gift deed qualified for the stamp duty concession available for gifts or settlements made for charitable or religious purposes.
What the decision covers
D.Dis.No. 36115/P1/2018 dated 27 August 2018 was issued by the Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, under section 56(1) of the Indian Stamp Act, 1899. It decides a revision petition filed by Sri Sathya Sai Central Trust against the District Registrar, Chennai (North), concerning Gift Deed Document No. P247/2017 at the Sub Registrar Office, Tiruvottriyur.
The gift deed transferred a house, ground and premises at plot No. 2395 in the Tamil Nadu Housing Board Scheme, Mathur village, from Mrs. K. Nageswari to Sri Sathya Sai Central Trust. The document stated a value of Rs.18,44,700 and bore stamp duty of Rs.73,888.
Why the document was disputed
The registering officer treated the gift deed as insufficiently stamped. The District Registrar, Chennai (North), then demanded deficit stamp duty of Rs.55,241 and a penalty of Rs.2,259.
The District Registrar found that:
- there was no proof that the trust's approval under section 80G of the Income Tax Act, 1961 remained current;
- the charitable purpose of the property donation was not stated in the deed; and
- the document was therefore ineligible for the claimed concession.
Findings and result
The Chief Controlling Revenue Authority examined the records and found that:
- Sri Sathya Sai Central Trust's approval under section 80G was still current and had not been rescinded by the Income Tax Department;
- a letter dated 21 September 2010 stated that renewal was not needed and the approval remained valid until rescinded; and
- clause 5 of the gift deed stated that the transfer was made without consideration, with charitable intention, for the purpose for which the trust was formed.
G.O.Ms.No.1224, Revenue Department dated 25 April 1964, read with G.O.Ms.No.224, Commercial Taxes Department dated 11 December 2003, reduces stamp duty to one half for gifts or settlements for charitable or religious purposes where the recipient society or trust is approved under section 80G.
The authority held that the gift deed qualified for this concession, set aside the District Registrar's decision and allowed the revision petition.
Who may be affected
The decision directly concerns Mrs. K. Nageswari, Sri Sathya Sai Central Trust and the registration authorities handling Document No. P247/2017. Its reasoning is also relevant to societies or trusts claiming the stated concession, particularly where current section 80G approval and the charitable or religious purpose of the transfer must be established.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Did Sri Sathya Sai Central Trust have to pay the deficit stamp duty and penalty?
No. The Chief Controlling Revenue Authority set aside the District Registrar's demand for deficit stamp duty of Rs.55,241 and a penalty of Rs.2,259.
Why was the gift deed eligible for a stamp duty concession?
The authority found that the trust's section 80G approval remained current and that clause 5 of the gift deed clearly stated the charitable intention behind the transfer.
What concession was recognised for the gift deed?
The cited government orders provide that stamp duty is reduced to one half for gifts or settlements for charitable or religious purposes when the recipient society or trust is approved under section 80G of the Income Tax Act, 1961.
Does the decision apply to every gift made to a trust?
The decision concerns a specific gift deed to Sri Sathya Sai Central Trust. The concession described in it is subject to the recipient society or trust having section 80G approval and the gift or settlement being for charitable or religious purposes.
