Relinquishment of shareholding of co-owner
D. Malhotra
(Querist) 01 April 2021
This query is : Resolved
Dear Sir/Madam,
Myself (co-applicant) along with my Niece (brother's daughter - main applicant) had booked a flat about 5 years back in which 25% of payment is given by myself and 75% payment is given by the niece.
Now the flat is ready for possession however one of us want to relinquish our share (either me or her) so that after possession registry can be done only in 1 person name. what should we do for same.......... some queries in my mind were as follows :-
1. can one of us just pay the actual amount to other person and inform the builder for the same to update their records ? Is this enough ?
2. do we have to make some legal documentation such as relinquishment deed etc. IF YES, is that need to be registered or notarized is fine ?
3. Is there any tax issues in terms of property tax laws ?
4. Is there any tax issue in terms of income tax as we are in blood relation ?
Let me know please. Thanks in advance for support.
SHIRISH PAWAR, 7738990900
(Expert) 01 April 2021
Hello,
One of you can execute a gift deed in favour of another person. The deed has to be registered with the sub-registrar by paying stamp duty and registration charges. You may be liable for capital gain tax. Discuss the implication with your chartered accountant.
Hemant Agarwal
(Expert) 01 April 2021
FULLY AGREE with the above Expert's advice.
Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com
kavksatyanarayana
(Expert) 01 April 2021
Yes. Either you or your niece may execute a Relinquishment releasing one's rights over the property. 1) simply inform the builder. 2) for giving money to another, the stamp duty shall be leviable on the value of the property for which the deed is executed or consideration as noted by you whichever is higher. It shall be registered before the Sub Registrar. (3) & (4) Property tax will be levied. However, consult a local CA or post these queries in CAclubindia.
P. Venu
(Expert) 02 April 2021
The facts posted no deed of conveyance, but only an agreement. it could be that agreement may provide for the conveyance be made in favour of any of the intending buyers or their assignee(s). Please verify.
Dr J C Vashista
(Expert) 02 April 2021
Relinquishment deed is not legal option as the property is not inherited but self-acquired. Share of either of them can be transferred by execution and registration of sale or gift deed.The transaction shall attract income tax as capital gain.
ashok kumar singh
(Expert) 03 April 2021
Agreed with views expressed by earlier experts, therefore no comments.
Thanks
