• Property transfer

Hello Sir,

We are selling a flat which is in my name.
We will use the same money and add some more to invest in a new flat and my son will be taking home loan for the remaining amount to buy new property. So i will be the 1st owner and my son will be 2nd owner. Can i add my daughter in law in the new property as a 3rd owner?
Do i have pay any income tax if i add my daughter in law in new property ?
Asked 4 years ago in Property Law
Religion: Hindu

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18 Answers

You can add her name. But you will need to pay capital gain on flat as you are selling it and purchasing another property adding other names as well as you are going to use some of the consideration amount for personal use.

Abhilasha Wanmali
Advocate, Nagpur
1022 Answers
1 Consultation

4.8 on 5.0

You can add her as co-owner

Just mention clearly in the agreement what amount is contributed by you and what amount is contributed by your son through home loan

Also add in agreement that daughter in law is added as co-purchaser as part of family arrangement, however she has not contributed any funds for buying the flat

Yusuf Rampurawala
Advocate, Mumbai
6881 Answers
79 Consultations

5.0 on 5.0

You can add your son and daughter in law as co owners

The only requirement is that capital gains from sale of property should be utilised by you in purchase of new property

Ajay Sethi
Advocate, Mumbai
87932 Answers
6207 Consultations

5.0 on 5.0

Hi,

You may not be required to pay tax for adding name in new property.

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

Yes you can add the daughter in law also.

No you do not have to pay any additional cost for adding her name.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

Yes you can add daughter in law as third owner in the flat if you invest complete amount of net capital gain in the new flat you shall get exemption under section 54 f income tax act. From paying taxes in form.of capital gain.

There is judgement from.delhi high.court and mumbai ITAT and other which clearly stated that house in name of close relative can be purchased and investment can be made if entire amount is invested by the assessee.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1. You can very well add your daughter in law as the co-owner of the said property and register the sale deed accordingly.

2. There will be no implication in your I.Tax liability for adding your daughter in law as he co-owner of the said property along with you and your son.

Krishna Kishore Ganguly
Advocate, Kolkata
26602 Answers
726 Consultations

5.0 on 5.0

There is no tax payable even if you include your daughter in law as a joint owner to the property now proposed to buy.

T Kalaiselvan
Advocate, Vellore
78089 Answers
1543 Consultations

5.0 on 5.0

1. You are free to add your daughter-in-law as a co-owner. The benefit of long term capital gain can be availed even if the new property is registered in favour of three co-owners.

2. You can claim tax exemption on the long-term capital gain on the sale of a house. To avail of this exemption, you must use the entire profit to either buy another house within two years or construct one in three years. If you had already bought a second house within a year before selling the first one, you could still avail of the tax exemption. Such capital gain exemption is reversed and the amount taxed as capital gain if the new property is sold within three years of the date of purchase/construction. This profit will be considered a short-term gain and taxed at the normal slab rates, not the 20% beneficial rate.

Ashish Davessar
Advocate, Jaipur
30761 Answers
971 Consultations

5.0 on 5.0

This is my response to you:

1. Since you are adding the daughter in law it does not create any income tax problem;

2. You will nonetheless have to pay the whole stamp duty;

3. Now after 3 years, you decide to sell this new property then all the owners will incur capital gains tax;

4. That your CA will assist you with it and draft a capital gains statement;

5. If you require assistance in drafting an agreement then engage services of a lawyer.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

You can bequeath your share in property to your son and daughter in law

2) if you gift your share inproperty after purchase you woukd not get benefit of long term capital gains exemption

Ajay Sethi
Advocate, Mumbai
87932 Answers
6207 Consultations

5.0 on 5.0

You cannot just remove your name like that

You will need to execute a gift deed to transfer your 1/3 share to your son and his wife

Gift deed from father to son attracts no stamp duty

Gift deed from father in law to daughter in law will attract 2% stamp duty

So you will have to pay 2% stamp duty on your 1/6 share

Registration charges will be nominal

Yusuf Rampurawala
Advocate, Mumbai
6881 Answers
79 Consultations

5.0 on 5.0

No there is no process of removing name you have to make a relinquish deed registered in favour of son and daughter in law and same has to be registered and stamp duty has to be paid.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

You cannot remove your name form the title of the property acquired just by saying that you have come out of it.

You have to execute a registered gift deed in favor of the other two joint owners.

For this you may have to pay the applicable stamp duty and registration charges in respect of the value of the share of proeprty you now propose to transfer as registered gift deed in their favor.

The earlier stamp duty paid by you was for purchase of the proeprty by a registered sale deed.

However in this situation the beneficiaries i.e., your son and his wife shall bear the stamp duty and the registration charges and not you as a donor.

T Kalaiselvan
Advocate, Vellore
78089 Answers
1543 Consultations

5.0 on 5.0

1. You can not just remove your name from the title deed of the property.

2. You shall have to convey the title of your share in favour of your son and/or daughter in law or anybody else by registering a gift deed accordingly.

3. While registering the said gift deed, you shall have to pay applicable stamp duty which is 1/2 percent in W.B. if the gift is to a blood relative.

Krishna Kishore Ganguly
Advocate, Kolkata
26602 Answers
726 Consultations

5.0 on 5.0

You will have to relinquish your share, you are not required to pay any additional thing.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

This is my further response to you:

1. You can execute a Gift Deed;

2. You will have to pay less than Rs.1000/- stamp duty and full registration charges;

3. You can also execute and register a deed of relinquishment;

4. It will not be a problem to remove your name.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

Hi,

You may release a relinquish deed Or WILL and you may be paying stamp duty etc.

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

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