Stamp duty- is a member trat as an relative for huf
Mukesh Khandelwal
(Querist) 01 May 2015
This query is : Resolved
An HUF consists of a Karta , his wife , his married son and 2 daughters - 1 unmarried and 1 married . The HUF property consists of mainly 1 main Immovable Property and other movable properties like bank accounts, bonds,etc. The main Immovable House Property is shown as HUF Property but is registered in the name of the Karta and his wife (as property can be in the name of coparceners. The Karta and his wife now wish to Gift or Transfer the House Property to their only Son who looks after them and the family. But there are some legal issues attached to it wherein help is needed:
a) As per amendement to Section 56 in 2012 a member of an HUF is treated as a "relative" and thus a Gift from a member to an HUF should not attract Tax. But does the other way around also hold true i.e. An HUF is also termed as a "relative" and can gift to its member and not attract Gift Tax?
b) for stamp duty perpose.....please guide me that an HUF is also termed as a "relative" and can gift to its member and not attract stamp duty as per consesional rate?
kavksatyanarayana
(Expert) 02 May 2015
@Author, HUF can give gift to his son. the son will come under Sec.56(2) of ITAct. it attracts a simple stamp duty. get drafted a gift deed by consulting a local lawyer.
T. Kalaiselvan, Advocate
(Expert) 04 May 2015
First of all see whether the property can be gifted to the son because it is HUF property held in the name of Karta and his wife. The other coparceners have a right to a share in the property. The donors can gift away their share in the property to their son and this will not attract stamp duty.
malipeddi jaggarao
(Expert) 06 May 2015
Stamp Duty is not a problem, the transaction can be treated as in between the close relatives and attracts only stamp duty on Gift deed. But what about the consent of other members of HUF? Unless they give consent, the donee will not get the clear title.
Mukesh Khandelwal
(Querist) 06 May 2015
thanks to all, in this case there is not any matter related to income tax. on the time of gift deed registration my client has been paid stamp duty @2.50% [half rate of provide rate of 5%] according the proviso for gift to blood relation. now the AG audit for state govt. raised an additional demand of stamp duty for balance 2.5% amount. whats's provisions and possibilities for reply to registrar. [matter related to Rajasthan state]
