Sidsharth Gautam (Proprietor) 23 August 2012

Property & gift

We have house in a Co-operative Housing Society purchased more than 30 years back. My sister was original holder of the share certificate & there was no agreement as in those day CHS were not making agreement. A member was given a share certifiacte & alloted a flat. After marraige she transferred the share certificate in my father's name. She held it for ten years. After my father's death, share certificate was tranferred in my mother's name. After my mother's death the share certificate is in my name. Is the property a self acquired property of my sister being the first holder? Should I get a gift deed done from my sister being the first holder & has not any gift deed earlier on anybody's name? If I sell it can I do a combine gift cum sale deed & register the same.

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STUDENT.... (.......) 24 August 2012

Hi Sidsharth Gautam,

In response to your query...However I'm not an expert in this but i think that i can answer the question from my end and the other representatives can judge me on the same and also share the feedback weather I'm write or wrong.

Since the share certificate was transfered by the 1st owner and to other and there after at the end it's on your name.

So you are the prime owner currently of this property. If you sell this property and will not by a new residential property then in that case you have to pay 20% of tax on long term capital gain, however inorder to save the tax on the same you have invest that money in some property to save the tax. You can also invest Some part of money in Government Bonds (That you need to check which one is that since all bonds are not applicable in this case) maximum investment can be done of Rs.50Lakhs...

Now if you prepare a Gift Deed on the same then in that case as well you have to Pay Gift Tax on the same and then for the amount on Registery as well.

However since you are prime holder now you can register the property on your name as well and for that you don't even required any NOC from your sister as well but that is only when your Mother has transferd/left a will on your name when she was alive otherwise your sister also has a right on this property as well being a legal hier.

If in case you don't have any will left from your mother's end and she has also not transfered the property on your name during her life time then in that case you can discuss the same with your sister if incase she agrees to leave her share in the property then in that case you can get the NOC papers signed from her in the Court and get the same Registered with Notary and Sub Registrar with two witness and then you are free and can goahead and sell the property.

Note:But don't forget the Long Term Captial Gain since every one tries to save the same and I know you also will do the same....... :)

Regards,

Kunal