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SUBRAMANIAM (Service)     23 September 2010

Gift Deed

 

Hi,

I bought a plot of land in 2006 in my native place in Tamil Nadu. I was then unmarried and based out of Mumbai and had hence purchased the land under a joint name with my father and had also given a

PoA to my father for executing the agreements etc. In 2008, I availed a housing loan based on my financial capacity alone, as my father is retired and has no source of income (for construction) and duly 

finished construction of a house on the land in 2009.

Now that I am married, my father wants to transfer the property to my wife's name to keep the ownership of the property clear . 

Can we accomplish the same by means of a gift deed and register the same, keeping the local registrar and the bank that provided the housing loan informed? 

What would be the stamp duty applicable for this deed? Would it be on the value of the plot of land or the land value + the constructed value of the house as well? 

Since this Gift deed of property would be within a relation, would it attract any Gift Tax / Income Tax?

Also, once this is done, the PoA would become redundant. Is there a way / necessity to cancel it properly

Thanks & Regards



Learning

 3 Replies

Adv. K.S.A.Narasimha Rao (legalquestadvisor@gmail.com )     24 September 2010

Dear Subrahmanian,

I suggest you to avoid all complication and stamp duty, it is better to execute a release deed in your favour relinquishing all his rights as well as confirming and undertaking that GPA powers conferred to him are surrendered from such date of execute of Release Deed and also further declaring that he has not executed any deed in favour of third parties without your knowledge during the subsistance of the GPA.

 

SUBRAMANIAM (Service)     25 September 2010

Hi Mr. Rao,

Thanks for the response. However due to certain circumstances, I do not wish to remain as the single owner of the property, hence the need to add my wife's name as a joint holder. Request you to pls suggest

Thanks & Regards

Adv. K.S.A.Narasimha Rao (legalquestadvisor@gmail.com )     25 September 2010

Dear Subramanyam,

Unless, you clear of the entire loan, Both your father and yourself cannot execute any sort of document.

After clearing the loan, it is advisable that, your father execute a Gift Settlement Deed in favour of his daughter-in-law  i.e. ur wife in respect of his share i.e. 50% undivided share of the proerpty and within the family members, Gift Tax will not be applicable but registration and other normal charges are applicable as per  state rules and regulations.

 

 


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