Consideration involved in a family property settlement
C.A Alok Mukherjee
(Querist) 16 July 2012
This query is : Resolved
Dear sir,
After the demise of the father two brothers are transferring there share of ownership to younger brother at an agreed consideration less from market value. The younger brother wants to show the consideration in the deed because he wants to be clear from all future queries from any other authorities like income tax etc. Can this be executed in a deed of transfer of right by way of gift deed where consideration is clearly be mentioned. If not possible, then what would be the best suitable option so that he gets the benefit of lower stamp duty / registration cost be obtained.
Adv.R.P.Chugh
(Expert) 16 July 2012
If there is consideration it cannot be called a gift deed. It may be a registered family settlement whereby their rights may be extinguished for an agreed consideration.
C.A Alok Mukherjee
(Querist) 17 July 2012
In that case can there be some advantage in stamp duty? So far in kolkata, for gift deed stamp duty is payable 0.5% whereas for sale it is 6%. So, the difference is significant. Please comment in this respect.
