Tax in case of gift vs. relinquishment

Querist : Anonymous (Querist) 14 January 2011 This query is : Resolved
There are two ways of gifting a property (to a blood relation/spouse):-
1. as gift (via gift deed)
2. relinquishment of rights (via relinquishment deed)

Cost comparison:-
As I know, gift deed costs more than relinquishment deed. What's the cost of gift deed?
Is it variable based on the value of the property or fixed?

Tax comparison:-
Is there any difference in terms of tax liability (for gift and relinquishment deeds)? There is no tax on gifts from blood relations plus spouse. What about tax in case of relinquishment deed?

conclusion:-
Which option, gift or relinquishment, would you suggest to transfer the property? Is this also the most common method used by people? If I am not wrong, gift deed is the most common among the two.

Thanks.

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R.Ramachandran (Expert) 14 January 2011
One can relinquish one's right in a property to the other only if the other person is also a joint owner of the property in question. In other words, one cannot relinquish his share in the property to another, who is not having a share/interest in the property already.

In the case of Gift, one can gift the property even to a stranger.

soumitra basu (Expert) 20 April 2011
There is little difference bewteen gift and relinquishment regarding tax.

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