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exchange of property

(Querist) 24 April 2011 This query is : Resolved 
Dear Sir,
1. Me and my brother -in law have purchased adjoining similar properties in a housing society in Dera basssi (Punjab). Subsequently I purchased another property with exactly similar specifications in the same housing society.
2. Now I want to exchange my newly acquired property with my brother in law. He is totaly agreeable. What is the procedure and what fees/stamp duties are payable. Please advise
Regards
M.Sheik Mohammed Ali (Expert) 24 April 2011
bye way of gift you can transfer.
Advocate. Arunagiri (Expert) 24 April 2011
There is no exchange agreement. You have to sell or gift the property mutually.
Parveen Kr. Aggarwal (Expert) 24 April 2011
You can execute and get registered an 'Exchange Deed'. The deed may be registered in the office of the Sub-Registrar (Tahsildar) like any other deed. The stamp duty payable on value (collector's rate)of only one property having greater value.
Advocate Bhartesh goyal (Expert) 25 April 2011
Execute the Exchange Deed and get it registered in Sub Registrar office.stamp duty differs from state to state.
R.Ramachandran (Expert) 25 April 2011
In terms of Article 31 to Schedule-I of Indian Stamp Act, 1899, Instrument of Exchange of property would attract the same duty as for Conveyance on the consideration equal to the value of the property of the greatest value indicated in the instrument.
As such though one property is being exchanged for another, still the stamp duty is payable. BUT INSTEAD OF PAYING STAMP DUTY TWICE, WHAT IS PAYABLE IS ONLY ONCE ON THE HIGHEST VALUE OF THE PROPERTY MENTIONED IN THE EXCHANGE DEED.
You also have to refer to the Amendments if any made by the State Government of Punjab in this regard, since the property is situated in Punjab.
Guest (Expert) 30 April 2011
Agree with Mr. Ramachandran. Otherwise gift deeds can do but on different dates, if you can mutually trust each other. Gift deeds, if made on the same date can at any time be treated as abuse of the Stamp Duty Act.
R.Ramachandran (Expert) 30 April 2011
Gift Deed will involve payment of stamp duty on the value of the property. It is similar to conveyance of property. The only difference is lack of consideration. Therefore, GIFTING of the property is the lease preferable option, while there is option for Exchange Deed - where one will end up in paying only one time Stamp duty on the value of any of the property whichever is higher. (This in effect would save the entire stamp duty on that value of the property which is less in value).
Sri Vijayan.A (Expert) 01 May 2011
Gift deed, sale deed and all requires more stamp duty.
Exchange deed is the only way to peacefully, amicably transfer both the properties at a lowest cost.
The stamp duty is for only one property (Which is having higher value).
The stamp duty shall be borne by both the parties equally


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