Rent on flat-family setllment
J B Goel
(Querist) 17 September 2011
This query is : Resolved
I and my spouse purchased a Flat in Gurgaon 6 years back.The share of spouse money mainly came through as a gift from our NRI son.He further gifted substantial amount of gifts after tis purchase. The cost of the flat was Rs 40 lacs.We have 2 married daughters, who are also NRIs.There was a rift and though family settlment on stamp paper of Rs 100/, it was settlled that the ownership of Gurgaon Flat be passed on to our son and his spouse.The agreement is witnessed by our daughters and signed by us,son and his spouse.
We were getting a monthly rent of Rs 23000/.Pl confirm that Tenant and Income Tax Authority will consider rent income of my son and his spouse after the execution of this deed.As my kids are abroad, the settlement deed has not Civil Court Authorisation.Pl guide with Case History, if any.
J B GOEL
prabhakar singh
(Expert) 17 September 2011
The deed so executed is void and illegal for want of registration and stamp duty paid there on is insufficient as the same is not paid as per circle rate or market rate[which ever higher] hence NO right or title or any interest of the flat has legally passed on to your NRI son or his spouse.HENCE RENTAL INCOME SHALL ALWAYS BE TREATED TO BE YOURS,AND NOT THEIR,IN CASE THE SO CALLED DEED IS FILLED TO CLAIM IT TO BE TREATED AS INCOME OF YOUR SON,AND THEIR MIND IS ATTRACTED TOWARDS INSUFFICIENCY OF DUTY ,THEY WILL IMPOUND THAT DOCUMENT AND SEND IT TO COLLECTOR/OR/COMMISSIONER STAMPS WHO AFTER THE ASSESSMENT OF DUTY CAN IMPOSE
TEN TIMES PENALTY OVER THE DEFICIENCY AND CAN REALIZE IT AS ARREARS OF LAND REVENUE.
SO better give up the idea and do not bring
the document before any authority /civil court etc.,having powers to impound it;ignoring this advise may take one to serious consequences stated above.
ajay sethi
(Expert) 17 September 2011
i agree with expert mr prabhakar singh . document has been executed on 100 stamp paper . it is insufficently stamped and inadmissible in evidence
Shastri J.K.
(Expert) 17 September 2011
I agree with Experts.
Raj Kumar Makkad
(Expert) 17 September 2011
I completely disagree with experts. Family settlement need not to be registered. Family arrangement can be arrived orally or may be recorded in writing as memorandum of what had been agreed upon between the parties. The memorandum need not be prepared for the purpose of being used as a document on which future title of the parties be founded. It is usually prepared as a record of what had been agreed upon so that there are no hazy notions about it in future.
Depending on the wordings employed, facts and circumstances and other factors, it may or may not required be stamped and registered. Each document has to be scrutinized on the basis of the wordings contained in the document to arrive at a conclusion whether the same requires being stamped and registered or otherwise. At times, it may only be stamped, but not registered in which case it can be looked into for collateral purposes. If it is required to be stamped and registered, but is not properly stamped and registered, it cannot be looked into for any purpose. Whether a purpose is collateral or not, is a matter which has to be gathered from the facts and circumstances concerned.
Courts lean in favour of family arrangements and all trivial grounds are overlooked. Rule of estoppel is pressed into service to prevent unsettling of a settled dispute. Family arrangement may be even oral in which case no registration is necessary. Registration would be necessary only if the terms of the family arrangement are reduced into writing. The family settlement arrived at between the parties which is in writing requires registration and an unregistered family settlement will not be admissible as an evidence . Here also, a distinction should be made between the document containing the terms and recitals of a family arrangement made under the document and a mere memorandum prepared after the family arrangement had already been made either for the purpose of the record or for information of the court for making necessary mutation.
prabhakar singh
(Expert) 17 September 2011
i still stand on my legs,the documents as a whole to be seen,only because a name 'family settlement' is given but there is clear transfer of title as here the author says that document incorporates" that the ownership of Gurgaon Flat be passed on to our son and his spouse."and there is no other give and take at all,i wonder how it can sustain.And if it can ,then why daily forum members advise fathers and mothers to execute registered gifts or will????why not these cost free advises of family settlement are given????
R.Ramachandran
(Expert) 18 September 2011
Dear Mr. Goel,
You have posted the matter earlier at the following two threads.
http://www.lawyersclubindia.com/experts/tranfer-of-rights-in-flat-to-son-213411.asp
http://www.lawyersclubindia.com/experts/tranfer-of-rights-in-flat-to-son-213681.asp
If only you had observed some discipline and stuck to your original thread, the above confusions in understanding the matter would not have come.
Ultimately you are the loser since you are not getting the appropriate answer, for the experts are not aware of the complete facts and circumstances.
prabhakar singh
(Expert) 18 September 2011
http://www.lawyersclubindia.com/experts/tranfer-of-rights-in-flat-to-son-213681.asp
VISITED THIS THREAD ALSO AND FOUND THE ADVISE OF Mr, SETHI AS VALID AS ONE OF Mr.Ramachandran GIVEN AT THREADhttp://www.lawyersclubindia.com/experts/tranfer-of-rights-in-flat-to-son-213411.asp
It seems after having taken these two advises you locally consulted a baggy brand of us who advised you so then drinking that HAMDARD SARVAT you wanted to fish any of us and fortunately you fished one of us,do as much of it as you can but on only your risk.
ajay sethi
(Expert) 18 September 2011
thanks to mr ramchandran and mt prabhakar singh for alerting us to the mischief being played some times by querists .
