Succession certificate/registration
My brother passed away last year and does not have any children. He leaves behind his wife. He did not leave a will. We are Hindus. My brothers estate consists of 1/2 flat, approx. 40 lacs in bank, and a small travel agency whose partners are my brother and his wife. The partnership is the owner of the small shop. The flat and shop are in Mumbai, in co-operative housing societies. We are four sisters and two brothers (brother expired this July). I am a 1/2 owner in the flat, and my deceased brother was owner of the other half. My sister-in-law is willing to relinquish the 1/2 flat (and the other assets) to me for a sum of money. Since I am the co-owner of the flat, I expect a low stamp duty rate. How much is the stamp duty in such a case? I plan to, in below order, 1) execute and register a relinquish deed for the entire estate and pay her the agreed sum of money 2) get a power of attorney from my sister-in-law 3) apply for legal heirship on behalf of my sister-in-law since that is a quicker process 4) apply for a succession certificate on behalf of my sister-in-law since immovable property is involved Since the relinquish deed would have been executed first, the entire estate would come in my name after steps 2,3 and 4 are completed. I would like to execute the relinquish deed first, since it is irrevocable, as a safeguard against any change of mind once the legal heirship and succession certificates are obtained in my sister-in-law’s name. The question is, can I execute a relinquish deed prior to heirship and succession certificate? Do I need original property papers, and the original will, for each of the steps 1,3 and 4? I have copies of the documents, and my three sisters will sign affidavits testifying to the family settlement they signed in 2000, and to the genuiness of the will left by by father leaving the flat to myself and my brother. The society transferred the flat in our names on that basis. We never mutated the property and the title is still in my fathers name, though the share certificate of the flat are in mine and my deceased brothers name. My fathers will was not probated but ALL my siblings signed a family settlement in the year 2000 when my father died, testifying that there was no need for probate as they agreed to the terms of my fathers will. Now the only only sister who will not sign the affidavits testifying to the documents they signed in 2000, and to the genuiness of the will left by my father, is one sister holding the original documents and refusing to let us have it.
I dont want to get trouble in terms of Income Tax Law and Registration Act. And my plan is to execute a relinquish deed but hold-off on registration till the succession was done. I understand that for each month I would face a penalty, until four months penalty. And if succession took longer than 4 months, I understand there are provisions for that in the registration act.
How should I proceed in the situation I am in?
Asked 6 years ago in Property Law
Religion: Hindu
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28 Answers
My father left a will in the year 2000 naming me and my brothers the co-owners of the flat. I only have copies of thhat will. My brother, who died in 2017, died without leaving a will. It is my brothers estate we are talking about. What documents are needed? I can have the societies for the flat provide me a replacement share certificate showing me and my brothers as shareholders, and the society for the shop do likewise, and the banks provide letters showing the amounts in the bank at the time of death, and the withdrawal of the money by my sister.
Asked 6 years ago
1) succession certificate is only for movable debts and securities
2) LHC is not for immovable property
3) since your brother died intesate you would need letters of administration from Bombay High court
4) your sister in law and other siblings can execute consent affidavit to relinquish their share in flat
5) court fees is Rs 75000 . it takes around 6 months
6) you have stated that you are paying SIL consideration for 50 per cent of flat inherited by her on your brother demise . since your sister in law is being paid consideration it is better sale deed be executed by sister in law in your favour .
7)succession certificate from Bombay High court would also take 6 months . HC would not grant SC as immovable property is involved
Advocate, Mumbai
94692 Answers
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you need brother death certificate
2) details of flat , other assets in brother name
3) consent affidavit of sister in law and your siblings
4) then apply for LA in Bombay High court
Advocate, Mumbai
94692 Answers
7527 Consultations
Sir
Property got through WILL is the self acquired property of you and your brother...so you both become joint owners, but not coparceners in respect of the property. Since your brother passed away, relinquishment deed will not serve the purpose.
Since your sister in law is taking consideration sale deed alone is the safest way for the transfer of property... don't think of expenses to effect transfer
Advocate, Hyderabad
170 Answers
88 Consultations
Thank you mr. Sethi. My problem is that one of the sisters will not sign the consent affidavit as she wants 40% of the balance estate after paying my sister-in-law. She will not accept 20% share as all us five siblings are agreeable to. We had created a family arrangement document for the entire estate where all siblings and sister-in-law would sign, and that would have allowed only paying a discounted stamp duty on the lowest value property. However we are now forced to take another route, where I will pay my sister-in-law first, sign and register a release deed in my favor, and then apply for letter-of-administration, then distribute the estate fairly since my sister-in-law will get 100% of the estate as she is the class I heir, which she would have already relinquished to me. Can I have her sign the relinquish deed in my favor and register it with the only -the death certificate - details of flat and shop with share certificates, -bank account details obtained from bank, and affidavits only from 3 of my 4 sisters. Since the relinquish deed is compulsorily registrable, and LA certificate will take letter, I cannot hold of on registration till La is obtained. What instrument can I execute to pay my sister-in-law first without getting into tax troubles.
Asked 6 years ago
The problem is one of my sisters has in her custody the original papers, including the will of my father in 2000 leaving the flat in our two brothers names. I have copies. The will was not probated when my father passed away in 2000, and ALL sisters signed a joint a family arrangement in 2000 accepting the will, but we did not register the family arrangement. I cannot get the will probated now without original. My other sisters can give affidavits as to the genuineness of the will and the family arrangement. Will the High court accept these affidavits when granting the letter of administration.
Asked 6 years ago
Relinquishment deed operates in favour of all legal heirs
2) your sister in law should execute sale deedfor her 50 per cent share in flat
3) before she sells flat to you let her obtain LA from Bombay high court
4) since she is the only class 1 legal heir she should get LA
Advocate, Mumbai
94692 Answers
7527 Consultations
In case your sister objects to LA it would be converted into testamentary suit and take 10 years to be disposed of
Executor of father will can apply for probate of will of deceased father
Issue sister legal notice to produce original will
Advocate, Mumbai
94692 Answers
7527 Consultations
1. If the flat in which you have 50% share alongwith your deceased brother, is already transferred in society records and share certificate is issued by society in the joint names of you and your deceased brother, then that is enough.
2. Your non-cooperating sister will be bound by the family settlement deed signed in 2000 regardless of the same being not registered. The fact that she did not object to the mutation of your and your deceased brother's names in the society records all this while, further strengthens your case. So your non-cooperating sister will now be estopped from claiming any right in that flat.
3. If you proceed to obtain probate of your dad's Will, then chances are that your non-cooperating sister may oppose the grant in which event the probate petition will be converted into a suit and the property would get locked. So in my opinion its better to avoid filing the probate petition for your dad's Will since the Will is already accepted by all the legal heirs of your dad including the dissenting sister vide the family settlement deed of 2000.
4. Coming to the estate of your deceased brother - yes his only legal heir i.e. his widow can sign a relinquishment deed in your favour. Since such a deed involves transfer of rights in immoveable properties, the same will have to be stamped and compulsorily registered. But you may get stuck with the registration since the registrar may require your sister in law to obtain letters of administration first from the court. So I suggest, that you get drafted a release or relinquishment deed through a competent lawyer and then through a registration agent, get a confirmation if such a deed can go through for registration. In my opinion the registrar in most probability will ask your sister in law to obtain the LA first.
5. If in case the release deed is not possible for want of LA, what you can do is enter into a MOU with your sister in law in which she will agree to release her rights in her husband's estate in your favour against consideration. You can pay her part consideration now on signing the MOU and the balance can be paid after the LA is obtained. In this way your sister in law will be bound by the contract.
6. You can then proceed to file a LA petition by using the power of attorney taken by you from your sister in law. Once LA is obtained, the brother's estate can be transferred to your sister in law or directly to your name with permission of court. Keep in mind that if the estate is transferred to your sister in law name, no stamp duty will be payable on the transfer document since she is the only legal heir. However if the estate is being transferred to your name (you are a class 2 heir, and in presence of class 1 heir ie the widow, you cannot inherit your brother's estate) with her consent then there will be stamp duty implications on you. But that is unavoidable.
7. I cannot tell you the exact stamp duty payable for the transfer of the half share of your brother in the flat without the details. For that you will have to take further consultation.
Advocate, Mumbai
7509 Answers
79 Consultations
Advocate, Jaipur
22630 Answers
31 Consultations
According to the government order issued by the state of Maharashtra that alienation of property between the family members shall not be subject to a stamp duty in proportionate to value of the property as applicable under the Indian stamps act. Therefore in this scenario you have to pay only 200 rupees as stamp duty in respect of transfer of the property in your favour.
Advocate, Lucknow
5127 Answers
78 Consultations
First of all for the house property, which you claim to be jointly in your name and on the name of your deceased brother on the basis of the share certificate is not valid.
The share certificate issued by the society is not a title document.
If you have acquired your share in the property by way of Will, then you should have got it mutated and the revenued records including other records to yor both the names.
At this stage since one of your sisters is agitating this, the next option to acquire the property is by getting the will probated.
Your sister in law is the sole owner of your brother's all assets left behind by him upon his intestate death.
She being the lone class I legal heir, she becomes the absolute owner all all the properties, both movable and immovable, left behind by your mother.
In this situation, even though she is co-sharer in the property that are in the joint names, she has to either execute a registered gift deed or a sale deed and not a relinquishment deed.
The POA deed from her authorising you to obtain the relevant certificates from local civic body and through court has nothing to with the will or the proposed release deed.
Advocate, Vellore
84893 Answers
2190 Consultations
You can apply for mutation of revenue records based on the Will on joint names i.e., on your name and your sister in law's name transferred from your father's name.
The share certificate is not the title document, hence there is no much relevance to until and unless there is a registered document to prove this.
As far as your brother's bank deposits are concerned, if she is a nominee then she can withdraw the amount without any legal hassle, if not she mey required to produce succession certificate from a court of law.
Advocate, Vellore
84893 Answers
2190 Consultations
The letters of administration is not required at this stage.
First try to get the property on both of your names properly
First ascertain the ownership properly with title thereupon and after let execute a registered gift deed in your favor to transfer the entire property to your name.
The unwilling sister has no role to pay in the affidavit becasue such affidavits are not maintainable or tenable as per law.
Advocate, Vellore
84893 Answers
2190 Consultations
You file a probate OP before the court competent and implead the waagitating as respondent to the petition.
You can mention in the body of the pleadings that the original will is held by her and she may be directed to produce the same before court.
Advocate, Vellore
84893 Answers
2190 Consultations
1. Certain aspects of law are required to be made known to you first. A will withoit the grant of probate has no value better than a scrap paper and same is the value of a settlement/relinquishment deed if the same is not registered.
2. So, the very first claim of your co-owning the flat of your late father can be challenged by any of your other siblings or their children on a later date when you might face legal problem.
3. Moreover, your brother's widow inherit all the properties left by her late husband and she can not relinquish her share of the said flat by taking money since in that case it will become a sale deed. Be it a relinquishment deed or sale deed it is required to be registered to be treated as valid.
4. Legal heir certificate is issued by the tehshilder or ward counselor of local Municipal Corporation who might refuse to the same if not applied by the legal heir herself. However, legal heir certificate can be availed with in 2 to 4 weeks. Succession certificate will be issued by the Court after receiving the application to be signed by the successor and not by her POA holder. It will be prudent on your part to first let her get te succession certificate and then strike the deal with her.
5. There is a silver lining in the matter i.e. if it is ever found that the consideration paid by you for getting the entire movable and immovable properties of the widow of your late brother, then at any time later on the entire deal can be cancelled by the Court on a later date if sought by her or any of her relatives.
6. Before all, get your father's will probated then proceed for buying the 50% share of it from your brother's widow.
Advocate, Kolkata
27219 Answers
726 Consultations
1.The title of the flat still stands in the name of your late father and his will has not been probated yet for which your other siblings can challenge the share certificates issued by the society in the name of you and your late brother.
2. You should first get a legally valid title on that flat claimed to be co-owned by you and your brother's widow before taking any further step to buy it from her.
3.The share certificate issued by the Society is not enough for claiming the title of the property legally.
4. If you can not lay hand on your late father's will to get probated, get a settlement deed registered by which you and your late brother's wife get the title of the said flat and the said shop.
5.Get the succession certificate filed by her for owning the movable properties of her late husband.
Advocate, Kolkata
27219 Answers
726 Consultations
1. The title of the property stands in the name of your late brother
2. If the above is established, then his widow inherits his entire property, movable or immovable.
3. If she registers a relinquishment deed in your favour then the title/ownership of the said properties get transferred in your name for which the L.A. has nothing to do here.
4. If you mention that you have paid some consideration against her relinquishing shares in your favour then it will be considered as a sale deed.
Advocate, Kolkata
27219 Answers
726 Consultations
1. Family arrangements in connection with properties is required to be registered but will is not.
2. If the will has been kept in possession of your said sister then lodge a police complaint to that effect and then file an application for probate claiming the genuineness of the said will photocopy of which is in your possession on the ground that all the legal heirs of your late father had accepted the existence of the said will in writing.
3. You have no option other than take probate of the will of your late father to claim co-ownership of the flat and the shop about which you are planning the relinquishment deed to be registered by the widow of your late brother.
Advocate, Kolkata
27219 Answers
726 Consultations
Affidavits would always have credibility in the eyes of law but still registration of an R deed would always be a better idea.
You are correctly in saying that first R deed then distribution as it would not only reduce the spyapmg duty plus less documentations.
Advocate, South Delhi
5474 Answers
13 Consultations
Another thought to optimize estate transfer for minimizing the expenses of sale, etc.
1. 50% flat is worth 150 lacs
2. Shop is worth 70 lacs (2 partners, my sister-in-law and my deceased brother)
3. Bank account 40 lacs
4. My brothers liabilities and legal expenses are 40 lacs
Sister-in-law is relinquishing all the assets and liabilities for 90 lacs.
So if a relinquish deed is separately executed for no consideration, then will not need sale deed for that.
And if a sale deed is drawn for the shop for 50 lacs, and the remaining 40 lacs payment if for the bank balance.
Another wrinkle in the matter is that my brother nominated my two sisters as nominees since i was in the USA and his wife spent much of the time in Indore. So unless a letter-of-administration is obtained the two,sisters will be holding title to,the half flat as caretakers/owners. One sister is happy to transfer everything to me, and other sister wants to put up the obstacles
Asked 6 years ago
The sharing of actual amount or the immovable property and the mode of transfer of the same can be discussed and decided in a meeting among all and the amicable settlement may be drawn in writing.
The deed so drawn may executed by a registered deed so that it is binding on all the parties.
The proportion of sharing including the movable assets and the monies may be clearly written and described with explanation that how this was arrived.
This will help to avoid litigation, if one may arise in the future.
Advocate, Vellore
84893 Answers
2190 Consultations
Your best option is to arrive at an amicable settlement with sisters
2) if they contest LA proceedings it gets converted into testamentary suit and take 10 years to be disposed of
3) nominees are only trustees for legal heirs
Advocate, Mumbai
94692 Answers
7527 Consultations
1. Please note that both of you shall have to provide your PAN No. for which the I.Tax department will come to know about the details of the said transaction.
2. Ordinarily, a property is relinquished in favour of other claimant and here you are in no way connected to the title of the said properties for which the widow of your brother will relinquish her right in your favour.
3. Even if you do not show payment of consideration, it might be treated as a gift deed between non blood related persons.
4. The total worth of the property comes to Rs.150+Rs 70 + Rs.40= Rs 250 lakhs (future legal cost can not be considered now) which you can not get relinquished by separately paying Rs.90 lakhs only.
5. However, if you can manage to get the said relinquishment deed registered, you might face problems later on as I.Tax department will consider that you have earned a profit of Rs,.160 lakhs (Rs.250 -Rs.90) for which you might be charged additional payment of around Rs.48.53 lakhs towards Income Tax for this transaction.
6. Thereafter the Registrar also send you a notice later on to pay the stamp duty accordingly since you have indirectly made a purchase of the said properties without registering sale deed by paying stamp duty.
7. There is a specialised cell with Income Tax department to detect such transactions for charging I.Tax and the said cell is well connected with the Stamp Commissioner's office. So, your above plan, though appears to be better than the earlier one, runs a very serious risk of getting i to a financial and legal mess.
5. It will be prudent on your part to chalk out a better plan like making a trust by the said widow for the purpose of looking after her welfare or any other purpose making you the head of the Trust to deal with the properties in any way you feel like.
6. This way you can avoid payment of the stamp duty and I.Tax problem.
7. However, engage a local lawyer having expertise in this field to cleverly draft such Trust Deed or suggest any other method in this regard.
Advocate, Kolkata
27219 Answers
726 Consultations
Nominee right rest up to receive benefits in hand, it devolution will according the succession rule, equal share in each, Wife, children, mother.
In brother property, sister and brothers have no right as class II legal heirs.
Advocate, Jaipur
22630 Answers
31 Consultations
Then a legal way to pay her the 90 lacs right away and get a “honor” agreement could be:
1. Pay her 50 lacs for sale of shop to me (ready reckoner value). ( partnership holds the shop where she and my brother were the two partners). The shop is self-acquired by my brother and sister-in-law)
2. Pay her 40 lacs for the rights to the 40 lacs in the bank (that same sister has withdrawn as nominee but has no ownership rights to).
3. Apply for probate of fathers will using photocopies of the will, affidavits of 3 of my four sisters testifying to the genuineness of the will and of the family settlement, copy of the unregistered family agreement, societies records showing submission of will copies and settlement copies in the year 2000.
4, OR (in paralllel?) apply for succession certificate of my dad’s property. Since my father died in the year 2000 sisters were not entitled to a share of the property. The widow will get my brother share. Even if judge divides property between my brother, myself and my mother (who passed away in the year 2006), the most the sister will get is 1/6 the share of my mother’s share of the flat, which is worth less than she is being offered now in money.
5. After completion of above register a deed of relinquishment for no consideration where sister-in-law relinquishes her share of the flat to me with little stamp duty due to being a co-owner.
5. As a safeguard, prior to items 3 or 4, I need to get some written guarantee from sister-in-law that she will execute a relinquish deed when item 3 or 4 have been successful, probably years down the road. What type of instruments are suited for this purpose without attracting stamp duty?
And can a will be probated based on photocopies and affidavits and testimony of my 3 siblings and witnesses, and a preponderance of the evidence. And is itmthe executor who needs to file for probate? He is very old and may not want to have the family reach such a stage and refuse to intervene.
Asked 6 years ago
1) executor has to apply for probate of will
2) court insists on original will for probate
3) if one of your sister objects to grant of probate it would be converted into testamentary suit
4) you can purchase shop which was in name of firm from your sister in law
5) don’t pay her Rs 40lakhs till she obtains succession certicate for money lying in bank account
Advocate, Mumbai
94692 Answers
7527 Consultations
OR (in paralllel?) apply for succession certificate of my dad’s property. Since my father died in the year 2000 sisters were not entitled to a share of the property. The widow will get my brother share. Even if judge divides property between my brother, myself and my mother (who passed away in the year 2006), the most the sister will get is 1/6 the share of my mother’s share of the flat, which is worth less than she is being offered now in money.
It is your wrong notion or misinterpretation about the daughters do not have any rights in their father's properties especially if the father is reported to have died intestate.
Since all the legal heirs are there, your mother's share shall automatically devolve on all her class I legal heirs, and the same principle shall apply for the father's properties too.
Any deed in respect of the immovable property shall be a registered document which involves stamp duty and registration as applicable to the nature of th deed being executed.
You cannot avoid stamp duty.
If the property is situated in Maharashtra, there is no stamp duty applicable for transfer of proerty within blood relations.
For probate you need to follow the procedures meant for it or comply with the necessary formalities as is required by law.
Please remember that there is no shortcut to any law.
Advocate, Vellore
84893 Answers
2190 Consultations
1. the value of the shop as informed by you in your earlier post id Rs.70 lakhs. (Shop is worth 70 lacs). Ordinarily, circle rate goes above the market rate. If you py Rs.50 lakhs for a property of Rs.70 lakhs which is completely owned by the widow of your brother, then the same problem will come from the I.Tax department and Stamp Commissioner/Registrar as explained in my earlier post. Moreover, if you purchase a property at a much cheaper price from your widow sister in law , she can very well file a suit against you later on for coercing her in to signing the said sale deed and the Court will take cognisance of her said allegation.
2. Your widow sister in law has complete ownership of the bank balance of Rs.40 lakhs pertaining to her late husband wherein you have just no legal connection. What is the justification for paying Rs.40 lakhs for getting the right to own Rs.40 lakhs kept in the bank account of your widow sister in law? Though she has not availed the succession certificate, no body other than she can claim share on your late brother's bank balance. Bank asks for succession certificate to be legally safe while allowing the successor to withdraw the amount lying in the account of their deceased account holder but it is not that they can be barred in acting so if they are confirmed that there is no successor to the late account holder other than his widow.
3. You can apply for probate as advised earlier establishing that the original copy is with another sister for which you have already lodged police complaint.
4. You have very firm misconception about law For claiming immovable properties you required legal heir certificate from the tehshilder/municipal commissioner and for claiming share of movable properties, you require succession certificate. In the instant case your conception that your sisters will not get share of your father's properties since he has died in the year 2000 is absolutely wrong. Your said conception based on the Amendment of Succession Act in the year 2005 and the Supreme Court Judgment passed thereafter is in connection with ancestral properties and not on paternal properties. Ancestral property is defined differently than the instant properties. All your siblings and mother will have equal share on the said property of your father who died intestate (if you do not consider the unprobated will) in the year 2000.
5. Yes, if you do not consider the will of your father then you become the equal share holder of your late father['s properties along with all your siblings and mother for which your widow sister in law can relinquish her share in you favour. However, all your other sisters might not like to relinquish their share in your favour.
6. You can not take any written guarantee from anybody affirming that he/she will show charity to you on a future date by relinquishing her rightful share of a property in your favour. Such agreement giving such guarantee will be invalid in the eyes of law.
7. Court has the power to adjudicate a n application. You shall have to file the probate application with the photocopy of the will stating that the original of it has been kept by your one sister which will be confirmed by your other sisters. Now, the Court will hear all the legal heirs who appear before the Court and pass judgment accordingly.
8. Finally, please note that it is not so easy to avoid payment of stamp duty since all theses tricks have already been played severally by various people for which the Authorities have sealed all their loopholes. So, consult with a good local lawyer having expertise in this field while while taking any such steps as planned above by you since I find that all those steps planned by you are based on serious misconceptions and finally may land yourself in to serious financial and legal damage. Excepting formation of Trust, I do not find any way to escape payment of stamp duty if you wish to buy the properties of your widow sister in law.
Advocate, Kolkata
27219 Answers
726 Consultations
1. U can sign a memorandum of understanding with your sister in law
2. For probate you will need original Will
3. If executor is not ready, then court will appoint an administrator
4. Release deed without consideration is same as a gift deed. Stamp duty still has to be paid
5. Sisters will be entitled to share in father's property as it was self acquired property and not coparcenary property. But as they have accepted father's will, they are now estopped to set up a contrary claim
Advocate, Mumbai
7509 Answers
79 Consultations
Thank you all for the excellent advice, the high quality of your legal skills, and your willingness to help.
Things have now taken a somewhat favorable turn, but created its own set of questions.
1. The family has reached an agreement whereby we divide my brothers estate via a family settlement agreement.
2. The troublesome sister has agreed to hand over the original documents,
at the time of signing the family agreement, where I will pay her the balance of 10 lacs from her share of the settlement.
3. I’m unsure whether she will hold back certain critical documents by claiming she does not have them, with a view to cause subsequent problem in getting title to my half of the Will’ed property, and leave it open to challenges.
4. She has agreed to sign any documents required for bringing the properties on record, both my half of the flat and my brothers estate. What documents can I have signed now to protect myself against eventualities described in item 3? .
5. We expect the family settlement will bypass the income tax department, and will involve a stamp duty of 2% on the lowest value immovable real estate, which is the shop, as the flat is higher value. Is that correct?
6. I need to take this opportunity to ensure that the half of the property, which was Will’ed to me by my father in the year 2000 via un-probated Will, is “regularized” to head off any future challenges.
I request your help in getting this right.
In this family settlement for my brothers estate should I include language where the sisters reconfirm that they have already accepted our fathers Will via a stamped but unregistered declaration signed in 2000, and attach copies of will and the signed declaration.
Do I need to attach true copies of property papers to the family agreement, or will xerox copies do? Will the registrar need to see the original property papers?
Simply using the new family agreement can I have the property title changed to my name (cont.
Asked 6 years ago
immune to future challenges, or are there other documents required. Which documents?
Will I still need to probate my fathers Will? Or a letter of administration, or succession or legal heir certificate.
In the family settlement do I need to put in language describing the family squabbles and the rational for dividing up the estate in the manner we did?
Will the introduction of new funds into the settlement cause the Income tax department to treat the family settlement as a guise to avoid capital gains and full stamp duty.
Family settlements being non-taxable events, do I need to with-hold TDS on the amounts paid to sister-in-law and sister?
In brief, based on ready reckoner rates, and this is how it works out:
1. 1/2 flat = 125 lacs (market price is higher)
2. 1/2 shop (my brother as partner) = 25 lacs (market price is 35 lacs)
3. My sister-in-laws half of shop (as partner) = 25 lacs ( market price is 35 lacs)
4. Bank account = 40 lacs
5. Liabilities and last wishes (gratuity to staff, repayment of loan, legal expenses, legal fees, other expenses, etc. (40 lacs.)
We intend to settle as following:
1. I bring in 102 lacs, and get the flat.
2. Sister-in-law gets 90 lacs.
3. The troublesome sister gets 40 lacs
4. The remaining three sisters get the complete shop, and the liabilities of 30 lacs.
WIll above pass legal muster and overcome any presumption from the IT department as to not being a genuine family settlement? Is there any suggestion to strengthen the family agreement?
Will having that one sister, or all sisters, sign relinquish deed to the full flat be necessary in view of the upcoming family agreement. A relinquish deed is irrevocable, whereas a family settlement can be challenged in the future?
The relinquish deed will incur 2% stamp duty as it is between siblings (is that true??), so on what property value will I be charged if the relinquish deed is simply to affirm that my sister has accepted the will?
Asked 6 years ago
Do I need to attach true copies of property papers to the family agreement, or will xerox copies do? Will the registrar need to see the original property papers?
The registrar will insist to produce the original documents in order to compare the same with the attested or certified photo copies.
Simply using the new family agreement can I have the property title changed to my name (cont.
After getting the family agreement deed registered, you can produce the copy of the registered document while applying for transfer of property to your name.
Advocate, Vellore
84893 Answers
2190 Consultations
Will I still need to probate my fathers Will? Or a letter of administration, or succession or legal heir certificate.
If the will is accepted by other legal heirs and have expressed their no objection to enforce the same for all other local civic admin purposes, then there is no need for obtaining probate or letter of administration.
In the family settlement do I need to put in language describing the family squabbles and the rational for dividing up the estate in the manner we did?
It may not be necessary.
Will the introduction of new funds into the settlement cause the Income tax department to treat the family settlement as a guise to avoid capital gains and full stamp duty.
This will not attract the income tax, dont imagine too much.
Family settlements being non-taxable events, do I need to with-hold TDS on the amounts paid to sister-in-law and sister?
Dont do that, because it is her problem to show it in hr returns accordingly, hence there is no need to have TDS for this settlement amount
WIll above pass legal muster and overcome any presumption from the IT department as to not being a genuine family settlement? Is there any suggestion to strengthen the family agreement?
There is no income tax in the family settlements
Advocate, Vellore
84893 Answers
2190 Consultations
You must apply for probate of will of deceased father
2) sister can execute consent affidavit to relinquish her share in property and furnish her NOC fir grant of probate
3) if you are entering into deed of family settlement it should be duly stamped and registered
Advocate, Mumbai
94692 Answers
7527 Consultations
