Snoots (n/a) 02 March 2014

Gift deed or release deed

JOintly owned apartment where husband is first owner ans wife second owner. As a divorce settlement, husband wants to give up his rights in favour of minor son while wife retains her share of properrty.

what is better? Gift deed or release deed? or does wife become guardian of sons share until he is 18? what are tax implications and stamp duty in Mumbai?

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5 Replies

Subash M R (Advocate) 03 March 2014

Gift deed is preferable in your case transferring husband share in the property in favour of minor son's name and you being the guardian of the son since he is a minor.And so far as stamp duty is concerned it varies from state to state and which is the only taxable amount in respect of gift deed excluding registration charges.

Thanking you,

T. Kalaiselvan, Advocate (Advocate) 04 March 2014

suggested by adv. subash, it is better to transfer your undivided share of property by executing a gift deed in your son's favor but please retain yourself as a guardian to the minor.

Snoots (n/a) 04 March 2014

Thank you for your inputs.... It is important that I retain my share as i will be giving up my rights towards another jointly held property as part of terms and conditions of the divorce. also when child turns adult he should be able to sell the property with my consent as well