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Arun Parikshat   30 August 2017

Sale of Property to cousin

Uncle purchases property in Karnataka . Since he was posted in remote location and couldn't arrive in time for the deal. It was registered in nephew name. Now nephew want to hand back the property to uncle. There is no monetary expectation from nephew and ensure only legally compliant option is followed. How does nephew transfer this property to uncle or his siblings whilst safeguarding himself from the law. What charges are incurred for gifting it back to uncle. Is capital gains applicable on gifting a property back to uncle. Can nephew just give a GPA to uncle and he has all rights on sale proceeds.


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 5 Replies

Kumar Doab (FIN)     30 August 2017

Yuor cousin being title holder can dispsoe in favor of his father by any valid/registered deed including gift deed, GPA..................

The agent in GPA has to maintain the trust of principle.

 

Kumar Doab (FIN)     30 August 2017

For other queries on tax consult local counsel specializig in Tax matters with all docs on record e.g; payment transactions, sale deed/agreement etc  

You can also post at post at LCI group website; CAClubindia 

Siddharth Srivastava (Advocate)     30 August 2017

It is advised for transfer by way of GIFT deed on which 2 per cent stamp duty shall be payable. No property gain tax etc will be levied in gift. There is no sale or transfer by GPA. Sidharth 9811776422

Arun Parikshat   01 September 2017

I think i wasnt clear 

 

need to transfer property from Nephew to Uncle. 

nephew does not want monetary compensation 

nephew wants clean and legally compliant method... it shouldnt impact other property sales of his in capital gains and the likes. 

 

What is the best process to follow in Karnataka ? 

Can Nephew give gift deed to Uncle ? as family member ? 

Kumar Doab (FIN)     02 September 2017

Gift deed is without consideration.

Release deed can be with/without consideration.

The list of relatives for concession/waiver of duty/charges is available at website of authority and in office.............

Check at SRO.............for charges/expenses for deed of your choice and relation as per list of relatives say; son to father! 


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