Which deed is correct one?
S Gill
(Querist) 02 June 2012
This query is : Resolved
Dear experts
I am from Punjab, a Sikh. I have two queries:
1. We have agricultural land which can be termed as ancestral, since it belonged to my great grand father. It is still undivided and I along with my brother and mother inherited my fathers share after his death. Mutation of property was done in my, my brother's and my mother's name after the father's death. I want to give up my right and want my mother to be the owner of my share as well, in undivided agricultural land. Can I do a deed of relinquishment in her favour?
2. There is also a residential house, which my father built. Similarly its mutation was done equally among my mother and brother. All three are co-owners. Similarly can I do deed of relinquishment in my mother's favour? And this property cant be termed as ancestral, isn't it?
Any answers will be greatly appreciated.
Thankyou
Shashikant V. Patil
(Expert) 02 June 2012
Mr Gill,
Since there is no partition and property is undivided therefore, share is not divided by meets and bound for each individual. At this stage, if you execute relinquishment deed, only your name will be deleted from the property. And again, it will remain undivided for all owners excluding you. If you wish to that, you share should pass to your mother, then first partition has to be effected in such a way that, you and your mother's share be jointly effected and later on you may execute relinquishment deed in favour of your mother as you wish.
M V Gupta
(Expert) 02 June 2012
In both the properties u are the holder of 1/3 undivided share. You can execute relinquishment deed in favor ur mother as proposed by you. This can be done even if the properties are not partitioned. But see that the relinquishment deed is properly stamped and registered with the Sub Registrar of Assurances.
A V Vishal
(Expert) 02 June 2012
I suggest you execute a gift deed in your mother's favour, further gift does not attract income tax whereas relinquishment does.
J K Agrawal
(Expert) 02 June 2012
Mr Shashikant is correct in his view because by relinquishment deed you can not transfer property to a particular person.
S Gill
(Querist) 02 June 2012
Thanks all for your replies. I am going to contact a lawyer to prepare a deed.
Just one more query, since I am married, does my wife have any right over any of the two properties? Will she need to sign as well.
S Gill
(Querist) 02 June 2012
It was a Double post!
Devajyoti Barman
(Expert) 03 June 2012
Until the new Divorce Act comes unto effect the wife by virtue of status does not becomes co owner pf a property belonging to the husband.
A V Vishal
(Expert) 03 June 2012
Mr Barman,
What is this irrelevant answer???
S Gill
(Querist) 03 June 2012
Dear Mr. A V Vishal
When you said Relinquishment deed attracts income tax:
Shouldn't it be tax exempt as I am doing it for my mother, who has paid for my education.
Now since my mother has no income, other than from agricultural land, which is not enough to pay the Govt. as income tax from capital gain of property after I relinquish it in her favour. So there is no way that I can relinquish it in her favour as it will be taxed, because she can not pay since it is a property not cash, unless property is sold ofcource. Am I correct?
Thanks in advance!
A V Vishal
(Expert) 04 June 2012
Mr Gill
In the first instance does the land qualify as a rural agricultural land is the question? In case the land is agricultural land as per the definition under IT act then you don't attract capita gains and the property can be relinquished
S Gill
(Querist) 04 June 2012
Yes Sir, the agricultural land is rural, in and around my ancestral village. So, according to that I can sign a relinquishment deed for agricultural land and a gift deed as far as residential property is concerned. Thanks for the info.
S Gill
(Querist) 04 June 2012
Mr. Devajyoti Barman,
Thats interesting info. So when this act comes into being, will if effect any deals that are already done in past and registered before this act comes into being. Would like to know just for information so that there is no drama in future. Thanks!
Anirudh
(Expert) 04 June 2012
Dear Mr. Gill,
You have to indicate the following:
1. Whether you are married?
2. If so, whether you have children?
3. What is the purpose behind your move to give the property to your mother?
S Gill
(Querist) 04 June 2012
Mr. Anirudh
1. I am married
2. I dont have children, yet and we dont have any plans for now.
3. As I have lived oversees for few years now and will be settling permanently there, so I don't see any purpose of holding any property here in India. I am an Indian citizen currently.
Shonee Kapoor
(Expert) 20 June 2012
Gift the properties and forget about it.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
