Hi Everyone , I am possessing a house in a legal tenancy since last 40 years and have a civil court suit against the owner of the land , now owner constructed an apartment behind my house on a builder agreement with a private limited company . To settle the dispute they are offering me a flat without taking any money and i have to pay the stamp duties only . So in this case which is the best option to do the registry of the property on my name . Someone suggested me to go with relinquish deed since keeping the civil suit mentioned in the deed , but after searching on few blogs i read that it can be done between only co-owners and legal heirs . 1.I am not a co-owner but a tenant and court is in my favor against the builder/owners. 2.I am not relative to the builder/owners. And please suggest how can i safe myself from the tax liability also since there is no transaction of money its a compensation he is offering to get my house and flat he is offering is less than half of the area what i have in my present house . Please help and advise . Thanks in advance :)
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In that case I would suggest you for settlement deed which has similar stamp duty and registration charges but don't have any tax implications as your giving ur right on your one property for another.
That will be kind of sale deed as always it is not required thay in sale deed money is consideration under transfer of property act.
Also income tax provides exemption under section 54 on such transfer. So you will bear mo tax liability.
1) you can file consent terms in court wherein landlord agrees to gives you one flat on ownership basis in lieu of you surrendering tenancy rights of existing flat
2) registered agreement can be executed wherein it is mentioned that flat is allotted to you in lieu of surrender of tenancy rights
3) as far as tax liability is concerned consult your CA in this regard
1.It has to be an out and out a deed of coveyance.No deed of release can be made.
2. SOmake a deed of sale and complete the purchaser albeit without money.
3.You can make deed of gift also but the stamp duty would be same as that of deed of sale.
4. Do note that in the sale deed you will have to mention the price of the property as without consideration no sale takes place. You can mention the payment through cash also if the builder is so willing.
1) Relinquishment of property can’t be made in favour of a person other than a co-owner. If a relinquishment is made in favour of a person who is not a co-owner, the transaction will be treated as a gift. So you can go with Relinquishment it will be treated as gift deed.
2) If you make gift deed you have to pay stamp duty & registration fees and taxes as well. As of are not relative of owner.
1. Relinquishment deed will not be a good idea. You make an application before rhe civil court on the ground that compromise has been made. Make a compromise deed and present it before the court.
On the basis of the compromise deed get the flat transferred to your name.
Regards
Sir,
You are right that you are not a co-owner but a tenant and court is in your favor against the builder/owners and you are not relative to the builder/owners. Hence, relinquishment deed cannot be executed in your favor.
As required by you, I suggest that you can safe your self from the tax liability by mentioning the facts of your case in the sale deed i.e. since there is no transaction of money its a compensation. Seller is offering the flat to you to settle the dispute without taking any money. Get it drafted from local advocate and you have to pay only for the stamp duty as per circle rate.
Yes u get the flat in ur name rather being a tenant
Basically it is a good will gesture by the landlord to offer you the property at free of cost for which you are not entitled, hence under the given circumstances it is advisable that you can ask the landlord to execute a registered gift deed in your favor.
Draft a gift deed tell him to gift you the flat after mentioning the settlement in the same. Get it registered he will pay the stamp duty and registration charges for the same
