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kannan (s/w)     30 March 2010

Stamp Duty


I have a question of property transaction and stamp duty.


1.       X bought a land (it was funded by Y). X is a lady and she wanted to return back the land to Y (her brother).  Because of Sale deed stamp charges are more.

a)      Can Y go for settlement deed or is there another way to register the land from X.?

b)      If Y goes for settlement. Will X’s hier or X’s can cancel the settlement Deed.?

c)       Will X’s hier can claim share on this property.?

d)      Can Y dispose the land at his own decision.?


 4 Replies

bhagwat patil (Property due diligence 9422773303)     30 March 2010

in eye of law x is a owner of land. whatever money transaction over there the should be done mutualy .y has to purchase the land by way of saledeed paying full stampduty and registration charges.

Prakash Yedhula (Lawyer)     30 March 2010


The normal mode of availing an economical method of duty transfer would be to have a Settlement Deed. Unfortunately, in your case, this would not be possible. Only Settlement Deeds between members of a "family" are entitled to concessional duty tariffs under the Indian Stamp Act, as applicable in the State of Tamil Nadu.

































As you may have guessed, the word "family" is a term of art, and has a restricted definition. Only a father, mother, husband, wife, son, daughter and grandchild (including an adopted child) are considered to be "family" for the purpose of the concessional duty tariff. Hence any settlement executed by X would not qualify for the concessional duty tariff. 








kannan (s/w)     31 March 2010

Thanks Mr. Prakas and Mr. patil for enlighting me on this subject.


Just to clarify:

Registration are accepted in Registration for settlement deed between brothers and sisters. Authorities say, their is a GO for this. I had personally seen the registration done between married brother and sisters.

Those registration of settlement deed is valid or not?


Vinod kashyap (Advocate & Legal advisor)     31 March 2010

Yes settlement deed if registered before registrar.

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