Heirship certificate
VINOD
(Querist) 04 March 2013
This query is : Resolved
my wife purchased a flat adding me as a joint owner in navi mumbai. we together nominated our son as per nomination form jointly.last year my wife expired and i approached the society to include my son as a joint owner in place of my wife. the society is asking for a heirship certificate. how do i get this certificate,where to go,how much will it cost? kindly advise.can i apply on my own.?
Devajyoti Barman
(Expert) 04 March 2013
Engage an advocate and apply for succession certificate from the court.
prabhakar singh
(Expert) 04 March 2013
Your wife must be having share certificate issued by society for which succession certificate can be applied by your son if only you and your son has survived your wife and there is no other son or daughter born to your wife.The maximum fee payable for succession in such cases in Maharashtra is 70k or the par value of shares held by your wife because the same is not marketable as listed security in markets and no transfer but only mutation would be taking place.Add to it lawyers' fees, typing and publication of notice etc. as additional expenditure.
VINOD
(Querist) 04 March 2013
thank you very much singh sir. is there any difference between heirship certificate and succession certificate.how much time will it take to get it. my wife was 50% joint owner of the flat.if the flat cost was 20l 50% of which is 10l then how much court fee am i supposed to pay. is there any calculator for calculating heirship/succession certificate cost in the court. i am told succession certificate is issued only for movable property.
prabhakar singh
(Expert) 04 March 2013
An heirship certificate can be obtained from Tehsildar/SDM of jurisdiction by moving an application along with death certificate of your wife stating on affidavit that you and your son are her only heirs.Tehsildar shall refer your application to Lekhpal who shall inquire and report about truthfulness of your application and thereafter the heirship certificate shall be issued to you.And it is quite inexpensive comparing a succession certificate.
Succession certificates are not issued for immovable properties.In your case it can be issued only because there are shares issued by co-operative society.You do not need to pay court fees on the 50% of the value of the flat but just on 50% of the par value of shares as there is no market value of those shares.
Be sure what society is demanding for transfer.
VINOD
(Querist) 04 March 2013
i thank you very much singh sir for your prompt and precise answer. since i do not have any legal knowledge i am a confused to the point of a wreck. my society wants me to get a heirship certificate from the civil court and the secretary of my society also happens to be an advocate. he tells me that i will have to pay court fee on the 50% of shares held by my wife on the basis of the valuation of my property on the sale deed which would roughly be about 5% of the cost of the flat. say my flat costs 20l then 50% of it would be 10l and the court fee would work out to be 50K + advocate fees etc and the total expenses could be anywhere between 65K-70K. would be grateful if you could kindly guide me how to go about getting a heirship certificate on my own as i am veryn likely to be misguided by people in my society who would like to encash on my ignorance of the law. will keep you posted on the developments made at my end should you decide to guide me step by step. hoping to hear from you soon with a favorable reply with tons of thanks in anticipation.
prabhakar singh
(Expert) 04 March 2013
Then it is succession certificate he is asking for.In Maharashtra(say Mumbai)court fees can't go beyond 70k.,let the value of flat be any.
Mr. Sethi,an expert here is from Maharashtra,whom you may contact for clarification.
You may go with following news to gather what I am trying to convey:
"When Yallpragada Manjulata Rao applied for a succession certificate to a flat owned by her husband in a Juhu Cooperative Housing Society (CHS) after the husband’s death, she was slapped a court fees of Rs 75,000.
However, after a recent order of the Taxing Master of the Bombay High Court, the staggering fees has been reduced to zero.
In a landmark order, the HC Taxing Master ruled that legal heirs seeking transfer of a flat in a CHS after the death of the owner need to pay court fees on the value of the share in society and not the market value of the flat. In a CHS, each flat owner is issued five shares valued at Rs50 each.
This order will benefit persons applying for a succession certificate for a flat in a CHS as till now, they were required to pay a court fees calculated as a percentage of the market value of the flat. The court fees for a succession certificate calculated under the Indian Succession Act is zero for an asset valued less than Rs1000. For an asset valued between Rs 1,001 and Rs 50, 000, it is 2 per cent, for Rs 50,001 to Rs 2lakh it is 4 per cent, between 2lakh and Rs3 lakh it is 6 per cent and above Rs3 lakh it stands at 7.5 per cent with a maximum ceiling of Rs 75,000.
Rao’s flat, which was has a market value of Rs40 lakh, invited a court fees of Rs 75,000. Rao’s lawyers, Suren Shety and AK Menon, challenged the court fees levied citing Rule 23 of the Maharashtra Cooperatives Societies Rules, which states that where a person is allotted a share by a society the payment required to be made shall not exceed the face value of the share.
In Rao’s case there was no exchange of money. Only the shares were being transferred to Rao after her husband Yallapragada Shankar Rao’s death. Therefore, the court fees would be charged on the face value of the shares, which added up to Rs250. The value of the shares being less than Rs1,000, the issue of succession certificate attracted zero court fees."
You may find it on the given below page of a net web:
http://www.dnaindia.com/mumbai/report_now-get-succession-certificate-without-paying-court-fee_1015294
AND THIS IS THE REASON BEHIND MY VIEW.OTHERWISE IT VARIES FROM STATE TO STATE.
prabhakar singh
(Expert) 04 March 2013
Then it is succession certificate he is asking for.In Maharashtra(say Mumbai)court fees can't go beyond 70k.,let the value of flat be any.
Mr. Sethi,an expert here is from Maharashtra,whom you may contact for clarification.
BUT IN YOUR CASE NO SUCH COURT FEES IS PAYABLE AND I REPEAT SO AGAIN AND AGAIN.
You may go with following news to gather what I am trying to convey:
"When Yallpragada Manjulata Rao applied for a succession certificate to a flat owned by her husband in a Juhu Cooperative Housing Society (CHS) after the husband’s death, she was slapped a court fees of Rs 75,000.
However, after a recent order of the Taxing Master of the Bombay High Court, the staggering fees has been reduced to zero.
In a landmark order, the HC Taxing Master ruled that legal heirs seeking transfer of a flat in a CHS after the death of the owner need to pay court fees on the value of the share in society and not the market value of the flat. In a CHS, each flat owner is issued five shares valued at Rs50 each.
This order will benefit persons applying for a succession certificate for a flat in a CHS as till now, they were required to pay a court fees calculated as a percentage of the market value of the flat. The court fees for a succession certificate calculated under the Indian Succession Act is zero for an asset valued less than Rs1000. For an asset valued between Rs 1,001 and Rs 50, 000, it is 2 per cent, for Rs 50,001 to Rs 2lakh it is 4 per cent, between 2lakh and Rs3 lakh it is 6 per cent and above Rs3 lakh it stands at 7.5 per cent with a maximum ceiling of Rs 75,000.
Rao’s flat, which was has a market value of Rs40 lakh, invited a court fees of Rs 75,000.
Rao’s lawyers, Suren Shety and AK Menon, challenged the court fees levied citing Rule 23 of the Maharashtra Cooperatives Societies Rules, which states that where a person is allotted a share by a society the payment required to be made shall not exceed the face value of the share.
In Rao’s case there was no exchange of money. Only the shares were being transferred to Rao after her husband Yallapragada Shankar Rao’s death.
Therefore, the court fees would be charged on the face value of the shares, which added up to Rs250. The value of the shares being less than Rs1,000, the issue of succession certificate attracted zero court fees."
You may find it on the given below page of a net web:
http://www.dnaindia.com/mumbai/report_now-get-succession-certificate-without-paying-court-fee_1015294
AND THIS IS THE REASON BEHIND MY VIEW.OTHERWISE IT VARIES FROM STATE TO STATE.
ajay sethi
(Expert) 04 March 2013
it is not necessary to go in for heriship certifcate . if joint co owner has died society can transfer flat in name of legal heirs on issue in demnity bond and fulfillment of transfer formailites .
if society is adamant then you will have to produce the certifcate demanded by society . Mr Prabhkar singh ji is right that court fees for succession certifcate in respect of flat court fes would be zero
VINOD
(Querist) 04 March 2013
first of all allow me to thank both of you from the bottom of my heart. it gives me a substantial amout of relief after going through your reply.i did go through the bye laws of my society and asked them to transfer the shares to my sons name as per 17a and 19 of msc act 1960. i also mentioned to them that as per bye law no 36 if a nominee wants his share in value of the flat then the society has to arrange for it. but i am told the value means the face value of the shares and not the value of the flat. in that case i asked them to allot those shares to my sons name after giving them an indemnity bond etc as mentioned in the bye laws but still they are insisting on heirship certificate because my society consults a federation and the federation chairman says heirship is necessary as per indian succession act in my case. i have given the society all the necessary documents i mean affidavit,indemnity bond etc and they have saidd that they will include my sons name in the society as a nominee member and not as a joint owner. i would still like to get the record straight and thus am struggling to have it right. any help from experts like you will give me a tremendous boost and help me reach my goal safely and surely.i would once again thank you in helping me in my struggle for which i would always remain grateful and obliged.
prabhakar singh
(Expert) 04 March 2013
Be happy and visit Mr. Sethi who is from Mumbai.He shall get the things done for you.His email id : ajaysethi64@gmail.com mobile no 9820087763
VINOD
(Querist) 04 March 2013
singh sir i would very much like to meet mr sethi. would be an honour if i could speak to him. i understand the time taken to obtain a succession certificate is much longer than to get a heirship certificate. in my case i need a heirsship certificate. would like to get things done asap. sethi sir any help in this regard would be highly appreciated.
VINOD
(Querist) 04 March 2013
singh sir i spoke to mr sethi and has been advised to pay for the succession certificate as demanded mainly because the courts here have not heard of any such decision by the high court. it seems all that was published is rumour.i went to a nearby court and confirmed it. lawyers there had a hearty laugh after giving me a patient hearing and showed me the slab rate already mentioned by you in your previous replies.mr sethi cannot help me because he undertakes cases pertaining to proper mumbai only.now begins the search for a lawyer who will guide me through the process genuinely.
M V Gupta
(Expert) 04 March 2013
Where is the need to obtain succession certificate? Your son is the nominee of ur wife. As such he is entitled to get the his name included in the share certificate in place of ur wife. Your society and the Federation are wrong in advising u to get suc cert which is required in the absence of nomination. In case ur Society does not accept, approach the Dy Registrar of CS for redressal of ur grievance.
VINOD
(Querist) 04 March 2013
gupta sir, i had approached the registrar cs for the same.apprised him of all the details and was advised finally to drop a letter afterwhich they will take up the matter with the society. i have been told that a nominee is only a trustee and does not becomee the owner of the flat. i have gone through many articles on the subject and have concluded that i must get a heirship certificate as asked for but the procedure to obtain one is becoming a nightmare.people say law is blind but i feel i have become blind by not being able to find my way in broad daylight. would appreciate if you could throw some light on the procedure to obtain one the right way i can follow independantly.
prabhakar singh
(Expert) 04 March 2013
I have a personal request from Experts from Mumbai to confirm if it is true what appears
on http://www.dnaindia.com/mumbai/report_now-get-succession-certificate-without-paying-court-fee_1015294
or it is a rumor?????
If rumor how dnaindia dare posted it ??
ajay sethi
(Expert) 04 March 2013
generally what happns is on detah of joint owner of flat society transfer flat in name of nominee . the nominee has to make application for trnasfer , submit noc of other legal heirs and flat is trnasferred . he may be required to submit ndemnity bond . generally no heirship /succession certifcate is required .
if society does not transfer complaint to registar works .
as far as sucession certifcate is concerned maximum court fees is rs 75,000 on value of property . i have asked my manging clerk to cross check regarding opinion of taxing master and will get back in a day ot two
VINOD
(Querist) 04 March 2013
singh sir pls view this also
http://articles.economictimes.indiatimes.com/2006-03-19/news/27466365_1_court-fee-market-value-three-lakh
M V Gupta
(Expert) 04 March 2013
Firstly get ur son's name incorporated in the share certificate as joint holder of the share certificate. As regards his title, if u have no other children ur son along with u will be the sole heirs to ur wife's 1/2 share in the flat and as such there should not be any risk even if u do not get the succession certificate. Whenever u feel it necessary u may make a will regarding ur share in the flat or gift it to ur son at appropriate time. Ur wife's 1/2 share gets vested in u and ur son by operation of law, and does not require any action on ur part.
As regards Mumb HC Tax Master's decision quoted by Mr. Prbhakar Singh, I have also come across the news item. Let us wait for Shri Ajay Seth's confirmation.
prabhakar singh
(Expert) 04 March 2013
AND HERE IS THE RELEVANT RULE OF MAHARASHTRA
COOPERATIVE SOCIETY ON WHICH THE ARGUMENT WAS ACCEPTED AND ORDER WAS MADE:
23. Valuation of shares: -
(1) Where a member of society ceases to be a member thereof, the sum
representing the value of his share or interest in the share capital of the society to be
paid to him or his nominee, heir or legal representative, as the case may be, shall be
ascertained in the following manner, namely, —
(i) In the case of a society with unlimited liability, it shall be the actual
amount received by the Society in respect of such share or interest; (ii) In the case of a society with limited liability, it shall be the amount
arrived at by a valuation based on the financial position of the society as shown
in the last audited balance sheet preceding the cessation of membership :
Provided that the amount so ascertained shall not exceed the actual amount
received by the society in respect of such share or interest.
(2) Where a person is allotted a share by a society, the payment required to be
made therefor shall not exceed the face value of the share notwithstanding anything
contained in the by-laws of the society.
(3) When a share is transferred by a member to another member duly admitted
as a member of a society, the transferee shall not be required to pay anything in
excess of the value of the share determined in accordance with sub-rule (1)
prabhakar singh
(Expert) 04 March 2013
YES!MR.VINOD !
EVEN ET(economics time ) HAS PUBLISHED THE SAME VERY NEWS UNDER HEAD LINE WHAT A RELIEF! ON TNN Mar 19, 2006, 11.36am IST
.IT CAN NOT BE WRONG.
PEOPLE YOU MET WHO LAUGHED AT ME LACKS KNOWLEDGE.
VINOD
(Querist) 04 March 2013
singh sir, i really appreciate the efforts made by you in trying to justify the article in the papers. this may be true in an isolate case but what does not seem to be true is that it benefits all legal heirs who applies for a succession certificate. i really wish it to be true and am eagerly awaiting for sethi sirs finding.this news did not have amy impact on the lawyers in the room, in fact they were surprised to hear that. its not that i do not want to pay for the certificate ,i would like to be guided properly and be charged judiciously.
prabhakar singh
(Expert) 04 March 2013
I UNDERSTAND YOU MR.VINOD !
YOU ARE READY TO PAY C.F. AND ALL THAT.
BUT BIG QUESTION IS THAT WHY SHOULD ANY ONE PAY 75K WHEN HE IS NOT OBLIGED IN LAW TO PAY EVEN A PENNY.
Raj Kumar Makkad
(Expert) 04 March 2013
I do appreciate Vinod your determination as you have expressed.
VINOD
(Querist) 04 March 2013
sirs i appreciate your concern for me as well as my case. in fact the sole purpose of interacting is to find a solution which can bail me out of this situation without pinching me hard. at my end even i am trying to find informations that could probably save me from having a big hole in my pocket. i consider myself fortunate enough to have experts like yourselves to support me in arriving at a favorable decision.
Raj Kumar Makkad
(Expert) 04 March 2013
You shall always be provided similar free of cost service without caring whether your pocket is heavy or has holes.
VINOD
(Querist) 05 March 2013
no updates today !!
Raj Kumar Makkad
(Expert) 05 March 2013
Why to update a resolved issue everyday?
VINOD
(Querist) 03 January 2016
i am back with this old problem of heirship certificate.on advise from a wellwisher i postponed pursuing this matter. now i understand that the maharashtra government has waived off stamp duty on property transfers if it is done within blood relations. on consulting a lawyer i am told that i will still have to pay stamp duty as earlier for heirship certificate even though the matter stands the same of transfering my deceased wife's share to my sons name which is a blood relation transfer. can anyone suggest a site where i can get the latest rules regarding my problem ?
