Duty on release deed
abhishek
(Querist) 21 June 2018
This query is : Resolved
Hi,
Me and my office are officially divorceed. We have joint home loan and property registered on both of our names
Property is in Bangalore
One of the clause in court order says, she will do Release Deed and in written I'll pay her some amount.
Does this sort of release deed attracts any kind of fees?
Abhishek
SHIRISH PAWAR, 7738990900
(Expert) 21 June 2018
For release deed stamp duty and registration fees is applicable. Contact local advocate he can inform you the stamp duty applicable for registering release deed and he can register the document also.
Vijay Raj Mahajan
(Expert) 21 June 2018
You don't pay any extra amount to your wife other than the amount you agreed to pay for this settlement. The Release Deed that is got registered for the Immovable Property, you need to pay Stamp Duty and Registration Fee as applicable in the Sub-Registrar office of the District.
R.Ramachandran
(Expert) 21 June 2018
If the amount which you will pay to your wife is linked to the release deed, then it will not remain a release deed and it will part take the character of a sale deed. Then in that case, the entire play of stamp duty payable on market value of the property etc., will come into play. Your wife will be subjected to Capital Gains Tax etc.
However, as per the court order, if your wife simply releases her right in the property in your favour, then in that case normal stamp duty (as applicable for sale deed on the value of the property) will not apply. BUT ONLY NOMINAL STAMP DUTY WILL APPLY as there will be no consideration shown in the Release Deed.
You have to separately abide by the Court order and give the agreed amount to your wife under acknowledgement.
You have to handle the issue very very carefully. The bottom line is, there should be no reference or linkage to the amount payable by you to your wife, in the release deed. The release deed should be a simple and straight release deed.
Guest
(Expert) 21 June 2018
What do you mean that you and YOUR OFFICE are officially divorced?
Kumar Doab
(Expert) 21 June 2018
Although you have not attached the order….
Also In this section there is NO provision of attachment.
If you wish you may attach in Forum section..
Erase all name etc before you attach to maintain the confidentiality..
Kumar Doab
(Expert) 21 June 2018
IT is felt that your own lawyer must have made everything clear to you.
The few lines quoted order seems to be clear………
The term release signifies; Give Up..
The order of the court is for your spouse to give up her share in property (being co –owner or title holder) in your favor..
The share in immovable property can be given up by valid/registered deed e.g; release/relinquishment/transfer/sale/gift/ settlement etc etc
Each state has fixed fee/charges for a deed..
The term Release as in order by court finds exactly same term in various deed also…
However the court order probably does not narrate you to pay any amount to your (Ex) spouse……………to release.. by mentioning in deed( as per exact draft in your query)..
Kumar Doab
(Expert) 21 June 2018
You need to pay some amount to your spouse….. and maintain in writing, as per your post. Isn’t IT.
So keep the written record.
Assuming that in lieu of Release by your (Ex) spouse you have to pay some amount to her (as per exact draft of order) then that is the value to be paid……………………
The stamp duty is per min. circle rate/revenue rate as applicable LOCALLY…
And you need to check locally from SRO..
E.g. If you need to pay Rs. 100/ and circle rate is say Rs. 200/ then although you may be paying Rs.100/ the stamp duty may be calculated @ Rs.200/ The market value may not be Rs.100/ or Rs.200/ or may be Rs.200/ ………..and may not matter also in light of order by court. Your own counsel must have already advised you about IT.
Your own counsel might have also advised you to go for a release deed without consideration and pay the amount ordered by court separately….and keep written … as posted by you.
The stamp duty and fee etc are usually paid by buyer and are narrated in agreement to sell…
Has court narrated in order ; who shall bear the cost in terms of Stamp duty/Fee….for Release.
Your own counsel must have already advise you that you may have to bear of Stamp duty/Fee….for Release………………..and which deed you need to chose for Release…
Have you and your counsel decided on sale deed @ amount ordered by court!
Moreover when you inquire locally in person, you may find that duty for Release deed is lowest..or when you compare you will come to know duty, fee for all deeds and can compare..
So what is the doubt and where is the doubt…!
Kumar Doab
(Expert) 21 June 2018
You had posted that;
“Me and my office are officially divorceed. We have joint home loan and property registered on both of our names Property is in Bangalore One of the clause in court order says, she will do Release Deed and in written I'll pay her some amount. Does this sort of release deed attracts any kind of fees? Abhishek”
Shashikant V. Patil
(Expert) 25 June 2018
I do agree with Mr. Ramchandran, however, mostly, release deed executed in the blood relations are in relations. In this case, querist no longer remain husband as he had been divorced party. In the alleged property now, they are co-owner and not having any relations of spouse even and hence, instead release deed, a sale deed shall be take place.
abhishek
(Querist) 26 June 2018
Hi Shashikant,
But still she was my wife and we had property as husband and wife, then how come this deed can take form of sale deed.
Also, let me know, if we have joint loan, then what is bank role in this? Registrar office require bank permission or vice-a-versa?
Guest
(Expert) 26 June 2018
Relinquishment Deed Or Release Deed could be executed by the Co Owners..
Guest
(Expert) 26 June 2018
It is not mandatory that Co owners should be relatives to execute a Release Deed.
abhishek
(Querist) 26 June 2018
What about duty, if they are not relatives. Husband and wife divorced.
abhishek
(Querist) 26 June 2018
NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
Guest
(Expert) 26 June 2018
The Registrar's Fees and Stamp duty would vary from state to state better you could confirm the same with concerned Registrar Office.
Guest
(Expert) 26 June 2018
If any doubt about Income Tax matters post your Query in the CA club Forum of this same Club
Kumar Doab
(Expert) 26 June 2018
Thanks for agreeing Ms. Usha Kapoor.
Kumar Doab
(Expert) 26 June 2018
Either spouse can sell to other spouse.
Is there any bar on IT, recently!
A Co-owner can dispose to other Co-owner.
Kumar Doab
(Expert) 26 June 2018
If the property is under Bank loan then Bank/lender may be taken into confidence while alienating the title…
The order from court is for one spouse to give up share in favor of other spouse and one spouse to pay other spouse.
The bank/lender may agree by seeing the order and the interest of lender is to look into paying capacity of borrower and payment of debt.
While visiting the LOCAL SRO ask the duty/charges when order from court is involved.
Your own LOCAL counsel can also help you.
Kumar Doab
(Expert) 26 June 2018
For tax matters you can also post at LCI group website ; CAClubindia
abhishek
(Querist) 27 June 2018
I request to provide third and fourth opinion on this related to Bangalore circle only. That is the point in raising question here.
I already had discussion with 2 lawyers. One say yes another say no.
Also, this is the post I found on internet, though it talks about charges in 2014.
http://www.indiarealestateforums.com/news-feed-blogs/26-bangalore/493-stamp-duty-and-registration-fee-for-various-deed
Shashikant V. Patil
(Expert) 27 June 2018
Mr. Abhishek, in your further comment/query, you stated that, :- But still she was my wife . This is perplexing. Please clarify your present legal entity in respect of your marital status.
abhishek
(Querist) 27 June 2018
Thanks for the replies. I found all answers myself.
