Adding another owner in property after registrations in mumbai
Navneet
(Querist) 15 February 2016
This query is : Resolved
Hello,
I have recently bought a property (Flat) in Mumbai, and the same is Registered on my & wife's name. The transfer deed is executed between us and builder. And Stamp Duty & Registration charges have been paid.
Now, we have loan and my mother in law is willing to pay the loan but she has to add her name in the property as the source of funds is Selling of property by my mother in law. If we will add her name in the property then she will not have to pay the Capital Gain Tax as sale proceeds have been invested back in property.
So I have two questions:
1. If we now add her name; what is the procedure and how much would be an approx. expense? And do we need to pay Stamp Duty & Registration again?
2. The amount we will take from her in repayment of loan, will it be considered as Gift? And will there be any Gift Tax applicable? As per my understanding since she is close related family; we can use here funds in re-payment of loan.
Appreciate a sooner response.
Thanks
Navneet
Hemant Agarwal
(Expert) 11 August 2016
1. Ask the Wife to execute a duly stamp duty paid registered "Gift Deed", for some of her own share of her immovable property to her own mother. This will suffice for all legal purposes, BUT to the exception of claiming Capital Gain Tax, as mentioned.
2. To claim benefit of Capital Gain Tax, IT is mandatory to buy another immovable property or investment, as applicable.
Keep Smiling .... Hemant Agarwal
VISIT: http://www.maharashtra-society-help-forum.com
Navneet
(Querist) 18 August 2016
Thank you Hemant, appreciate your response.
