Gifting or sellling property to co-owner
Ankit
(Querist) 07 April 2016
This query is : Resolved
My Brother & Father are co-owner of a self acquired house property whose Municipal Valuation is Rs. 48 Lakhs. In the deed the share of holding is no where mentioned. My Brother wants to relinquish his rights in the name of my father so that my father becomes the single owner of the property.
The ultimate goal is to get Property Card in name of only one owner i.e. My Father.
1. If share of holding is not mentioned in Purchase Deed, then is it by default considered as 50%-50% holding? Do we have a supporting case law / section / rule for the same?
2. If my brother Gifts his share in the House Property to father, Will my father require to pay Stamp Duty on the Municipal value of my Brother's share of Property i.e. Rs. 24 Lakhs?
3. If my brother sells his share of property to my father for an Inadequate Sale Consideration of Rs. 50,000/-, what shall be the Legal or Tax Implications?
Please guide which option is better and more concrete in court of law.
Kappil Cchandna
(Expert) 07 April 2016
Sir,
If the property is registered in one person's name then there is no requirement of any deed. First be sure as to in whose name the property is registered. Its not by default rather its always on papers.
Warm Regards
Kapil Chandna Advocate
9899011450
Ankit
(Querist) 07 April 2016
Hi Kapil,
The Property is in name of Brother as well as Father since at the time of purchasing the property, sale deed was prepared as they both being co-owners.
Moreover, currently even Property Card has both my father as well as brother's name.
Kumar Doab
(Expert) 07 April 2016
Both are equal owners.
It is blood relation.
Charges in blood relation are low.
Inquire charges from SRO.
Ankit
(Querist) 08 April 2016
Thanks Kumar for resolving 1st query.
I will be obliged if you can also reply / resolve on query 2 & 3 posted.
Kumar Doab
(Expert) 08 April 2016
The stamp duty is on Circle rate/Collector rate whatever it is being called in your city.
Further inquire from SRO.
Or contact your lawyer in person.
R.K Nanda
(Expert) 08 April 2016
agree with experts.
r.sathyanarayanan
(Expert) 08 April 2016
Dear Mr.Ankit,
For 1.refer sec 45 of Transfer of Property Act.
For2.Release deed can be can be executed by your brother out of love and affection without any money transaction then ,since it is between family members you can pay fixed stamp duty and not on guideline value.pl chk your state registration act and stamp act pl.
For3.if your brother is selling even though at Rs50000,stamp duty has to be paid at guide line value.
Regards
Shakthi.
Rajendra K Goyal
(Expert) 09 April 2016
1. In absence of any clause contrary to the effect it would be considered that the share is equal. Case law not provided.
2. Stamp duty is state subject, in some states, gift to blood relative is stamp exempted. Confirm in case of your state.
3. Stamp duty paid under valuation of the property may attract penalty etc.
