Validity of property gift deed

p.damodar (Querist) 08 September 2011 This query is : Resolved
My father purchased property in the year 1960 it was sale deed. My father expired in 2003 without transfer property in any of our family members.My family consist of 4 brothers and 2 sisters all are married. my mother is also alive. Now all of my family members are willing to transfer this property into my name after taking small consideration from me. I would like to take in gift deed. My doubt is (1) Is gift deed can give absolute right on said property.
(2) is there any other way to get absolute right on property. (3)is gift deed is eligible for housing loan in future renovation of property.
Kindly give yours valuable solutions.

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R.Ramachandran (Expert) 08 September 2011
Dear Mr. Damodar,
If all your brothers and sisters and your mother are willing that the property be transferred in your name - then the easiest and cost effective way to do the said transfer is by way of getting a REGISTERED RELINQUISHMENT DEED (relinquishing their respective shares) FROM EACH OF THEM IN YOUR FAVOUR. This will involve only nominal stamp duty and registration fee. On the basis of such Registered Relinquishment Deed you can get the property mutated in your name.

Whatever monetary consideration that you want to give them, you can give them in the form of GIFT by means of a cheque. The gift received by them will not be taxable in their hands since the gift is received from brother / son.

As per your plan, if you want to get the property gifted by each of your brother / sister and your mother in your favour, then the said Gift Deeds also are required to be registered. This will involve stamp duty as applicable to conveyance of property / sale deed. That means stamp duty is payable on the value of the property (i.e. as per govt fixed rate) and also registration charges. This will be a costly proposition compared to the Regd. Relinquishment Deed.