Self earned property partition
navin
(Querist) 27 April 2018
This query is : Resolved
we r 2 brothers A&B.WE HAVE CERTAIN SELF EARNED PROPERTIES IN BANGLORE.MY PARENTS X & Y ALSO HAVE THERE SELF EARNED PROPERTIES. IN BANGLORE.ALL R ALIVE & EVERYTHING IS GOING PEACE FULLY.
MY FATHER X WANTS TO DIVIDE PROPERTIES WHEN EVERYTHING IS FINE.
MY QUERY IS:-
1. CAN V DIVIDE SELF EARNED PROPERTIES AMONG OUR SELVES IN A REGD PARTITION DEED & MUTUALLY EXCHANGE & DIVIDE THE SELF EARNED PROPERTIES among ourselves{like x self earned prp to A,B SELF EARNED PRP TO A ETC}
2.WE ALSO OWN THREE PROPERIETOR SHIP FIRMS WHERE A,B,X areTHE PROPERIETORS.
X wants to divide shares of this properietor ship to Y & there after to B.can this be done in a simple familypartition deed.
3.WHAT WILL B THE STAMP DUTY & TAX IMPLICATIONS ON THE FAMILY MEMBERS.
Dr J C Vashista
(Expert) 28 April 2018
A family settlement deed can be got registered in the circumstances.
Stamp duty and registration charges differ from a state to other state, consult a local lawyer or Sub-Registrar.
Prima faice it is an acadmic exercise for students.
navin
(Querist) 28 April 2018
can v share the prpoerietorship buisness?
Ms.Usha Kapoor
(Expert) 28 April 2018
A family settlement deed would suffice for the purpose where all the family members sit together and define each person's share and thereafter get it registered and stamped.It will be binding on the family members who are parties to it. It brings peace and prevents any future disputes with Family members regarding the self earned property.
Yes! You can share the propriety ship business.
navin
(Querist) 28 April 2018
pls answer can v also share the properietor ship shop buisnesss????
navin
(Querist) 28 April 2018
still the reply is nt clear????????
Ms.Usha Kapoor
(Expert) 28 April 2018
Yes!You can also share the proprietorship shop business and profits generated out of it.
M V Gupta
(Expert) 28 April 2018
In the light of the facts stated by you, my replies to your queries are as under:
1. Self acquired properties belong exclusively to the person who acquired them. However he can share them if he so desires by executing gift deeds and registering them. Deed of family arrangement or partition deed does not apply in ur case as all properties are said to be self acquired .
2. As regards proprietorship business, you may consider entering into Partnership agreement clearly specifying each person's share and profit sharing ratios. You may consult your CA for tax implications.
3. In Maharashtra gift deeds executed in favor of blood relations like father and son mother and son and brothers attract nominal duty Rs. 200 only. You may have check the position in your state.
navin
(Querist) 29 April 2018
sir ,i have approached the forum as there r different views by different lawyers........
pls let me know what the law says.............pls do guide me the easiest way to out.will the family arrangement deed be enough for different self earned property transfers????
kavksatyanarayana
(Expert) 29 April 2018
I agree with the advise of Mr. M.V.Gupta ji. 2. As regards propritorship business, how are doing business, either under proprietory ship or partnership? If it is partnership business, the terms and conditions of partnership deed need to be verified. for tax purpose and the business purpose consult an experienced CA.
navin
(Querist) 30 April 2018
BUISNESS IS PROPERITOR SHIP ,BUT THIS IS NOT CLEAR WHETHER A FAMILY SETTLEMENT DEED CAN BE ENTERED TO DIVIDE THE SELF EARNED PROPERTIES AMONG FAMILY MEMBERS........
navin
(Querist) 30 April 2018
KINDLY CLEAR THE CONFUSION
navin
(Querist) 30 April 2018
waiting for the replies sir as this club is like a guide for future refrences.................................
kavksatyanarayana
(Expert) 30 April 2018
Partition deed may be excuted by all the co-parceners or joint owners of properties they have.
navin
(Querist) 01 May 2018
thanks..........................
M V Gupta
(Expert) 01 May 2018
This is with reference to your request to clear the confusion.In my reply it is clearly stated that as the properties are self acquired, family arrangement or partition does not apply. I may further clarify that Family arrangement or partition apply to cases of jointly owned properties or HUF properties. In the case of self acquired properties, transfer of property has to be by any of the legal modes namely sale or gift or exchange. As regards the business presently being carried as proprietorship business, I have suggested to form a partnership by executing a partnership deed. This is the simplest type of business organisation.The other forms such as LLP, Private limited company etc are more complicated and are needed where large number of people or people outside family circle are involved.
If you still are not able understand, better course will be to meet your Advocate and discuss.
navin
(Querist) 01 May 2018
sir ,
nw guptaji aap correct ho?vashistha ji correct hain ?ya ushaji correct hain?
the problem is the same with local lawyers also .............all r confusing me as some r saying family settlement deed its possible & some r saying its nt possible .....wat should i do?i am nt able to come to conclusions at all.............
Anil Satyagraha
(Expert) 02 May 2018
Navin,
May-02-2018 Wed, 07:25 AM
There are three questions posed by you. All have been answered by the respected experts in prior threads. To summarize and extend their thoughts, here are some next steps.
AS TO QUESTION NO. 1 - PARTITION OF SELF ACQUIRED PROPERTY. Plausible solutions are "Will", "FAMILY SETTLEMENT DEED" (WHICH MAY ALSO INCLUDE INCOME FROM OTHER SELF ACQUIRED SOURCES)
AS TO QUESTION NO. 2 - This may be accomplished by a WILL DEED (remember to get the same registered)
AS TO QUESTION NO. 3 - The Stamp Duty Act governs the procedure and quantum, which may best be addressed by your Legal Counsel. Tax implications can be answered by a competent Chartered Accountant.
Disclaimer & Notice: This message or any part of it is not construed to be Legal Advice. For legal help, kindly contact a lawyer that specializes in the area of your concern.
~Anil @ Satyagraha . com
Tel +91 7095 77 66 33
navin
(Querist) 03 May 2018
ANY MORE VIEWS....................
Ms.Usha Kapoor
(Expert) 09 May 2018
Mr.Gupta is right. in his opinion.
