Transfer of Joint Property in the name of Father and Son to the daughter
Shridhar
(Querist) 17 February 2011
This query is : Resolved
Me and my Honourable father hold a property at Kolhapur. We have decided to transfer the same in to my sister's name ( she is married ). Please let us know :
a.What kind of agreement should we be executing to minimise tax and stamp duty payments
b.What is the stamp duty applicable
c.What are the tax implications if she pays a compensation for transfer of property in both the cases - Gift or normal Transfer to all three of us. I am the first joint holder of the property and my dad is the second joint holder of the property.
A V Vishal
(Expert) 17 February 2011
a.What kind of agreement should we be executing to minimise tax and stamp duty payments
b.What is the stamp duty applicable
Ans. Gift deed is the best available option. It involves minimal stamp duty and registration expenses. Under the bombay stamp duty act the stamp duty payable In case of a gift to spouse, brother, sister, lineal ascendants or descendants @ Rs. 10 for every Rs. 500 or part thereof (approx. 2%) of market value. It is advisable to visit the registration office to know the current rates.
c.What are the tax implications if she pays a compensation for transfer of property in both the cases - Gift or normal Transfer to all three of us.
Ans. Don't call it compensation, call it gift from sister to brother and daughter to father, there are no tax implications.
adv. rajeev ( rajoo )
(Expert) 17 February 2011
Regd.,Rights relinquish deed can also be executed in favour of your sister.
