What taxes and chargs will be applicable for following type of release deed
Bhushan Mehta
(Querist) 25 September 2014
This query is : Resolved
My maternal grandparents have died without leaving a Will and have left behind a flat in Mumbai as immovable property.
Currently there are 4 legal heirs to the flat - my 2 maternal uncles, my one maternal aunt, and myself (as the only legal heir and descendant of my mother, who is deceased).
We have agreed to sign a deed of release, wherein my uncles will release their rights to the flat for a flat sum of money, and my aunt will release her rights to the flat without any compensation. All rights will be released in my favor.
I would like to know:
1. What kind of taxes I will have to pay for this sort of an arrangement? What percentage of Stamp Duty is applicable to me and what other taxes and charges will be applicable?
2. My aunt is releasing her rights without compensation. Will I need to pay Gift Tax on 25% of valuation of the flat? How do I calculate how much gift tax I will have to pay?
Thanks.
ajay sethi
(Expert) 25 September 2014
check with sub registrar office . stamp duty on release deed is nominal in maharashtra as per bombay stamp act . you will have to register release deed
Rajendra K Goyal
(Expert) 25 September 2014
Taxes are local, consult local lawyer. Stamp fee is nominal on such transaction.
