Hi,
One of the Partner wish to Transfer his share in Asset of the firm to his wife.
Simply, his family member (wife) Name needs to be inserted instead of his name in the land which is now Firm owned, implicitly, he & his cousin are the current joint owners/partners. As the said partner is the major investor/managing partner of the firm (which is Non-functional currently), he holds 60% of share & the rest is his partner's, as per Partnership deed.
So, Can he Transfer the land (Undivided Property) DIRECTLY TO HIS WIFE IN WAY OF GIFT/SETTLEMENT as said in Transfer of Property Act (OR) He needs to brought her in as an INCOMING PARTNER OF THE FIRM (HE OUT..) AND TRANSFER ALL HIS RIGHTS/INTERESTS/SHARES OF PARTNERSHIP TO HIS WIFE?
Else, is it necessary/mandatory to make a SALE DEED BY HIM ALONG WITH OTHER PARTNER(S) & Transfer the land to his wife, in case not inducting her in Partnership? (Whereas, Stamp duty for Gift deed is only 1% but it is 7% for Sale deed, plus Registration costs 1%.)
In order to refrain from spending any extra costs unnecessarily, Either he may wish to continue in Partnership Or inducting his wife as partner, he would like to transfer/settle his share to his wife by way of Gift deed, with other partner's consent. So, what is the simple way out or how the Law to be enforced here..?!
Thanks in advance.
1. Property belonging to a Firm's name CANNOT be transferred by partner to his Wife, since this would constitute a prosecutable offence.
2. Partner can transfer his Partnership Share to his Wife, via a registered Gift Deed.
Keep Smiling .... Hemant Agarwal
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