Transfer Property

I recommend the first option.

Both are, however, possible.

If you want to gift your brother your property, you need to sign & execute a valid gift deed in favor of your brother. Please remember that your gift stands valid as long as you being the transferor, remains alive. Should you die prior to execution of the gift deed, the same stands rendered null &void. You need two witnesses to sign your gift deed, following which you must register it. To be admissible in court, your gift must be mandatorily registered u/Sec. 17(a) of Registration Act. The only advantage of gifting your property is that the purchaser receiving your property as a gift stands exempt from capital gains tax. Hence, if your brother inherits your property, he is exempt from CGT.

However, if you choose to sell your property to your brother, the sale deed must be executed on non-judicial stamp paper in case your property valuation exceeds Rs.100/-. Please remember that should you wish to sell your property, onus lies on you to ensure that the to-be-sold property is free from any defects as to title/character, or the like. Please also remember that should you sell your property within thirty six months from its purchase date, any monetary benefits arising from the sale would be treated as short-term capital gains, for which you are liable to be taxed as per the relevant IT slab.

It would be good if you gift your property, as you will have a tax hassle-free time. If you have willed it to your relatives, chances are that you would face less tax harassment.

Now that you have both sides of the picture, it is for you to decide.

For further queries, you may e-mail me at: basu_kunal@hotmail.com

Regards

Advocate Kaybee

Better transfer the property by registered gift deed ,

sir me and my brother purches shop in joint brother was expiry on 02/07/2017 he is marreid wife and 1 doughter was 2years ye dono varis he so wife re marrige and doughter abhi mere pas hi rahegi so proparty transfar on my name plz advi