Transfer of Flat
patrick
(Querist) 25 October 2009
This query is : Resolved
I along with my brother are joint owners of a flat. My brothers name was put for convinences sake. My brother has given an undertaking that he has regulished his right to the flat. The society states that I will have to pay gift tax for the same. Please advise.
regards Patrick
PJANARDHANA REDDY
(Expert) 25 October 2009
HOW A SOCIETY COLLECTS THE GIFT TAX ? IT MIGHT BE TRANSFER NAME CHARGES. PLEASE VERIFY AT YOUR END?
Kiran Kumar
(Expert) 25 October 2009
what is the authority of society to charge any gift tax?
pls give detailed facts.
A V Vishal
(Expert) 25 October 2009
Patrick,
The society probably wants you get the relinquishment done legally viz through a gift deed or a relinquishment which has to be registered by paying proper stamp duty and registration charges, this is probably because your brother is the joint owner and in future there may be issues & disputes and the society may be in a fix. As advised by Mr Reddy please verify and clarify and as suggested by the other members the society has no right to levy or collect any type of tax except which it is authorised to do.
adv. rajeev ( rajoo )
(Expert) 25 October 2009
Why u have to pay the gift tax. your brother has relinqused his rights. There is no illegality. For exeucting the rights relinquish deed regn., is minimum.
Raj Kumar Makkad
(Expert) 26 October 2009
Nothing to add more in the precise reply of vishal.
patrick
(Querist) 31 October 2009
Sir,
The Society wants me to pay Gift Tax for my brother has relinqused his rights,then the society will transfer / delete his name. My brothers name was put by me for convinence, i.e before marraige.
Should i pay Gift Tax ?
Should a will / undertaking for relinqusing the rights be registered?
regards
Patrick
patrick
(Querist) 13 December 2009
Sir,
Please advise:-
1. Is it required that a Will has to be registered to gain Legal entity.
2. Can the Society refuse transfer of flat when my brother has relinqused his rights, (his name was put by me for convinence, i.e before marraige)my name stands first on the share certificate, the society's stand that if he has relinqused his rights,then Gift Tax has to be paid as we are joint holders?
Please give section of the law.
regards
Patrick
rod_patrick90@hotmail.com
Vineet
(Expert) 13 December 2009
There is no gift tax chargeable in this transaction, in fact, gift tax has been abolished way back. Society may as per its own bylaws charge crtain fee but that is certainly not Gift Tax.
Please reconfirm with Society whether they want relinquishment of rights by your brother be formally registered to avoid any future complication. In such case you may have to pay stamp duty and registration charges.
Yes, relinquishment of rights in an immovable property by a co-owner needs to be registered.
