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Registration of property in andhrapradesh

Querist : Anonymous (Querist) 25 July 2020 This query is : Resolved 
Namaste Sirs

1) Present Market value of property = 1 crore

2) Government rate of property = 33 lakhs

3) Property purchased in the year 2000 for Rs 80,000/-

3)Property is the name of my wife uncle

4) Now my wife's uncle is willing to register the property in the name of my wife just by taking 2 lakhs rupees amount, Because my wife uncle took the responsibility of the family when my wife lost her father when she was 8 years old.

Moreover my wife's mother financed Rs 73000/- during the purchase of property in the year 2000.

5) Initially the idea in purchase of property was to sell for higher price, But now every one mindset got changed as not to sell the property but to retain.

Please advice any legal complications in future and Income tax enquiry about acquirement of property in my house wife name.


Guest (Expert) 25 July 2020
Contact our " CA Club India " of our same Forum.
Dr J C Vashista (Expert) 25 July 2020
In order to register a "sale deed" your wife/ her uncle will have to pay stamp duty for Rs. 33 lakh irrespective of the fact she has paid only Rs. 2 lakh and market value is Rs. 1 crore.
Dr J C Vashista (Expert) 25 July 2020
It would be better to get a "Gift Deed" executed by titleholder i.e., uncle of your wife in favour of your wife/ his niece, which will be without a consideration (Rs. 2 lakh stated to be paid) to be recorded as in the case of a "Sale Deed".
P. Venu (Expert) 25 July 2020
Any suggestion depends upon the provisions of the stamp law as in force in the State of Andhra Pradesh. The public policy in fixing Fair value/Guidance value is in order to prevent undervaluation property and consequent loss to the public exchequer. To my knowledge, there is an inherent provision in the respective Stamp Acts to deal with situations where the actual consideration is less than such Fair Value. Please ascertain whether the Andhra Pradesh Stamp Act contains such a provision.

However, the difference in the instant case is substantial. And admittedly, there is a valid reason. In such circumstances, the better option is the execution of a settlement deed, esp. if the mother is alive.
Rajendra K Goyal (Expert) 25 July 2020
Property transfer by way of gift deed to near relative attracts less stamp duty in Andhra Pradesh. Confirm from local advocate whether the transaction / relation is covered under the provision.

If you proceed with the proposal for execution of sale deed, stamp fee is to be paid at price fixed by the government for the property or the actual sale price which is higher.

It would be better if discuss in detail with local lawyer to ascertain which process would prove cheap and best in view of the local law in the state.
kavksatyanarayana (Expert) 25 July 2020
Yes. The property is the self-acuired of your wife's uncle. So you may prefer Gift deed to be executed by your wife'uncle in favour of your wife. The stamp duty is 3% for niece.
Querist : Anonymous (Querist) 26 July 2020
Thanks for your kind advice sir

Dr J C Vashista (Expert) 26 July 2020
You are welcome Mr. Narhari.

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