Harpreet Singh (Partner) 13 June 2014

Gift deed

Dear Sir/s

My father wants to Gift me a self acquired Industrial property to give me my share in New Delhi. He got the leasehold rights & posession of the property in January 2013 after a long 30 yrs wait from DDA. The property was purchased in 1983 in an open auction. But being unable to deposit the amount in time the leasehold & posession was not given untill Jan 2013. Now he got it freehold/ conveyance deed this month only. The construction is done in 2013-14.

We'll pay 6% stamp duty + 1% registeration charges. The deed will be Irrevocable, unconditional, voluntary deed. I want to sell that property & purchase

# Does this stamp duty & registeration charges have to be paid by him or me? Do I have to pay any Capital gains tax?

# I want to sell this property & purchase another Industrial property immediately after gift in the same locality but a better location at equivalent or a bit higher price to start a new seperate business. Do I have to pay 20% Capital gains Tax if I do so?

# If yes what sh'd I do to evade these taxes as I'm already getting a very little share? I don't have any cash with me as I was doing joint business with him & only drawing salary as in traditional business families. Although I'm partner with him & my brother in the firm.

# What are other fast instruments through which he can give me my share, I don't have to pay any tax & I can purchase my new industrial or commercial property without paying high taxes?

I heard about Family settlement deed but somebody told me it takes 1-2 yrs for execution. I can't wait for so long as my father is terminally ill & I have disputes & differences wit my father & brother. My father favours my brother, who infact is a big cheater.

Kind reply ASAP

Regards

Reply Follow

5 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 14 June 2014

If a property sell and immediately purchase another fixed property within 3 years of sell it , then no capital gain tax. It is nil. Buyer has to pay stamp duty etc.

Harpreet Singh (Partner) 14 June 2014

Sir thanx for your reply but kindly elaborate.

Harpreet Singh (Partner) 14 June 2014

Somebody told me that in Gift Deed I can't sell the property before 3yrs. Is it true?

vivaasvann (PM) 15 June 2014

There is actually no difference in Settlement deed and Gift deed. A settlement deed is a lot cheaper. In AP the stamp duty on a Gift deed is 3% and the stamp duty on a settlement deed is 1%.

T. Kalaiselvan, Advocate (Advocate) 15 June 2014

As far as the stamp duty is concerned the buyer has to bear the expenses. Regarding the sale of gift deed, the same rule applies, however you may clarify the issue from a prudent auditor or place the query with CA club.