Property received in huf

Querist : Anonymous (Querist) 21 September 2011 This query is : Resolved
The case is :-

Three brothers A, B, C acquired a HUF property on their father's death, when the HUF got dissolved.
Now two of them (B & C) want to give away the property to A.
What is the best option for B & C, so that no tax arises in any manner.

(1) Gift
(2)Relinquishment
(3)Sale

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Shailesh Kr. Shah (Expert) 21 September 2011
Gift deed.
Since Income tax exempt on gift to brothers.

ESTHERPRIYA (Expert) 23 September 2011
You can give by way of settlement deed or Release deed both are the best option

Vineet (Expert) 26 September 2011
As far as Income Tax is concerned, Gift is only option as the same will not be treated as transfer for capital gain, neither income in the hands of brother.

Examine from applicability of stamp duty on the instrument. In many states, stamp duty at concessional rates is levied on gift between close relatives.

Sale is worst. It will attract capital gains in your hand and levy of full stamp duty.