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Tax on inherited property

(Querist) 16 April 2012 This query is : Resolved 
I along with my wife,son and widowed mother stay in a flat in a cooperative housing society in Mumbai since 1973.The flat was purchase by my late father who died without a will.My mothers name came on share certificate as she was the nominee.I have a married sister who is claiming a share in the property.
My name and my sisters name are now shown as nominees with 50% share.
We want to sell the flat.My sister wants to purchase the flat and give my share as 60%.My sisters husband is going to finance
her.They will use my mothers share also to
pay me.It will be change of name on the share certificate amongst the family.

How can we save tax on these transactions?
Can we do it by way of Gift from my mother to me?Can my brother in law gift money to my sister to pay me?Can my mother gift her share to me?How to do it?I believe there is nil or minimum tax on gift.Can we save on stamp duty and reg.charges this way because there will not be any selling but only transfer of name.Please advise urgently.
Shonee Kapoor (Expert) 16 April 2012
Now no matter it is a gift or sale, the stamp duty would need to be paid for the value of the property. Minimum as per circle rates.

Regards,

Shonee Kapoor
harassed.by.498a@gmail.com
Raj Kumar Makkad (Expert) 16 April 2012
Minimum tax is payable in family settlement. Make it as a family settlement instead of a sale without any consideration which shall fetch only nominal stamp duty.


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