Release Deed
Arati Gawde
(Querist) 10 November 2010
This query is : Resolved
In whose favor one can make Release Deed?
Raj Kumar Makkad
(Expert) 10 November 2010
In Haryana a release-deed can be got effected only in favour of any blood relative either in side of mother or father up to five generations if the property is ancestral. This relationship is required to be etablished by way of documentary evidence.
Parveen Kr. Aggarwal
(Expert) 10 November 2010
One can execute Release deed with regard to any property in favour of any other person.
Mr. Makkad,
In Haryana also, Release deed can be executed in favour of any person. It is only on the point of payment of stamp duty that Release deed executed with regard to ancestral property in favour of some family members concession is given. Otherwise by making payment of stamp duty in terms of Article 55, Release deed can be executed in favour of any person.
Prakash Yedhula
(Expert) 10 November 2010
A release deed can be executed in favour of a co-owner. In respect of others, the same could be treated as a sale and duty for sale would be payable.
Typically, a Release is used in cases where there is no requirement of a conveyance or a transfer of property, but the transaction involves relinquishment of a right or a claim. It is more in the nature of an admission of an existing right and a surrender or abandoning of real or potential claim or right.
J K Agrawal
(Expert) 11 November 2010
Opps
However 99 or say 100% release deeds are made in some bodies favor in India but actually The person give ups his rights in property and the property remains in hands of other co owners. The actual word is relinquishment deed and not release deed.
To release in any one's favor is actually a transfer and if it is without consideration it can be termed as GIFT and not release.
For example a property is owned by A B C and D. A releases his share in favour of C. This type of transaction is GIFT. If a relinquish his share his share will be devolve in remaining three. This transaction is release deed.
Parveen Kr. Aggarwal
(Expert) 14 November 2010
Article 55 of Schedule I appended to the Indian Stamp Act, 1899 providing for payment of stamp duty on a deed of 'Release':
"55. Release, that is to say, any instrument not being such a release as is provided for by section 23A whereby a person renounces a claim upon another person or against any specified property-
(a) if the amount or value of the claim does not exceed Rs. 1,000: The same duty as a Bond (No. 15) for such amount or value as set forth in the release
(b) in any other case: Five rupees"
