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FAmily arrangement- Stamp duty applicability

(Querist) 19 May 2011 This query is : Resolved 
In case a person receives certain immovable property under family arrangement, then whether stamp duty is payable on the same?

If yes, the liability would arise at the time of entering into the family arrangement or at the time of getting the possession of the property?

How the title would be passed on in the name of the recipient?
n.k.sarin (Expert) 19 May 2011
Mr pankaj if family arrangement is registered one, stamp duty is payable, if the family arrangement is written in the form of memorandom of family arrangement ,no stamp duty is required.
M/s. Y-not legal services (Expert) 19 May 2011
Yes. Above expert is correct.. If you want register the document before the sub register office mean stamp duty is must. Otherwise its not necessary.. But if its not register mean its questionable about its valid and genuineness.
Advocate Sachdev Bishnoi (Expert) 19 May 2011
by filling a suit for declaration against the executor you can make the property in your name and on that basis you can make the entry in the revenue record and no stamp duty is payable in that case
malipeddi jaggarao (Expert) 20 May 2011
Mr.Sachdev your advice is no connected with the query. Why anybody will file a suit for declaration against the executor who made the family arrangement? Query is whether stamp duty is payable or not. If it is to be registered applicable stamp duty is payable, if not registered, it has its inherent problems later.
Advocate Sachdev Bishnoi (Expert) 20 May 2011
Mr. Jagarao it is for your information that the author has stated that a family arragement and not the property is purchased and the family arrangement is always between the blood relations and in this case a declaratory suit is maintanable
Surrender K Singal (Expert) 20 May 2011
It may be considered as a collusive suit for the said purpose that law does not debar such a suit
Jai Karan Nagwan (Expert) 21 May 2011
Dear All esteemed experts,

Advocate Sachdev Bishnoi is talking sense, this is fact that any transaction related to immovable property of more than Rs 100 need regn. on the other hand also fact that any transaction relating to immovable property between the close relatives does not attract the registration Act, for that section 25 of the contract Act is also relevant. before going in support of the plea of Mr Bishnoi would refer land mark judgement on this as Kale V Director of Consolidation, Ram Charan Das v. Girja Nandini Devi,Tek Bahadur Bhujil V/s Debi Singh Bhujil, Krishna Beharilal v. Gulabchand , Kale v. Deputy Director of Consolidation (AIR 1976 SC 807) etc...

suggestion of Mr. Bishnoi is perfect, recital of family settlemet is not required registration, but family settlement if it is in writting need to registered and attract for registration act. but as per my understanding Mr. Bishnoi plea that if the parties wish avoid the registration act has to file declatory suit and has to get consent decree.

regards,
Jai (09711197250)
Advocate Sachdev Bishnoi (Expert) 21 May 2011
Thanks Mr. Jai Karan for submitting the commments
Guest (Expert) 21 May 2011
Agree with Mr. Sachdev Bishnoi.
malipeddi jaggarao (Expert) 22 May 2011
Now it is clear Mr.Bishnoi. Thanks for clarification.
Advocate Sachdev Bishnoi (Expert) 22 May 2011
ok mr jaggarao this is the method for the transfer of the properties to the children or the other family members in blood relations and the property transferred in such cases is treated as self acquired property and not the ancestral
Jai Karan Nagwan (Expert) 23 May 2011
Dear Mr. Sachdev,

you are deviated from the point. In family arrangement property can be either self acquired or ancestral. Generally family arrangement happens in the ancestral property only, however in certain circumstances self acquired property can also be reliquenced in favour of other family members in the family settlement / arrangement. family arrangement is nothing but equatable distribution of property among the family members.

Main query by Mr. Pankaj, which is not properly replied in the discussion. his query was as :-

1. In case a person receives certain immovable property under family arrangement, then whether stamp duty is payable on the same?

Ans:- it is required and also not required. Required in the sense, when family arrangement is written, it attract registeration act, if not file suit for declaration and get consent decree, it can happen in one week, please note you must have antecedent and existing right in the property received in family arrangement, than only there can be consent decree.

2. If yes, the liability would arise at the time of entering into the family arrangement or at the time of getting the possession of the property?

Ans: the day you are claiming family arrangement, means you have acquired the possession, if possession is not acquired family arrangement has no value in law. if you want to register the family arrangement, than can happen only when possessiion is taken.

3. How the title would be passed on in the name of the recipient?

Ans: if it is registered or got consent decree, approach to the revenue officer for change in records of right.

Best way to get the family arrangement registered.

regards,

M V Gupta (Expert) 23 March 2021
Dear Experts. In the discussion there is no mention of the Article under which stamp duty is payable if the FA deed sets down all terms and conditions of the arrangement. I find there is no specific Article in the Maharashtra Stamp Act. I do not know if other state acts contain specific Article.


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