Your cousins can execute relinquishment deed in your favour.
Transfer of jointly held property from my cousins
There is a property which is jointly held in my late aunt's (my father's sister) name and my name (50:50). My aunt had decided to transfer her share to me but had a sudden demise. Now her 3 children (2 daughters and 1 son) who are not interested in her share want to let go the 50% to me for no exchange of money. I want to know how i can transfer her 50% to my name without having any tax implications for my cousins and minimize tax implication for me as well.
Asked 6 years ago in Property Law
Religion: Hindu
13 Answers
See the best way to transfer on these facts is through the Gift deed. The cousins can make a registered gift deed in your favor transferring there share in your name.
1) deed of relinquishment or gift deed can be executed by your cousins to relinquish or transfer their share in property
It will better for you to go for Release deed or Gift deed.
They need to execute registered relinquishment deed in your favor and transfer that share to you.
1. The legal heirs of your said Aunt shall have to register a Gift Deed in your favour transferring their 50% inherited share of the said property.
2. Once the said gift deed is registered in your favour, you shall be the title holder of the said property in its entirety.
3. There will be no Income Tax liability for gifting or receiving gift of immovable property.
- As per law, your aunts property share will be devolved upon her three legal heirs , after her demise.
- Since, they are not interested in her share , and wanted to give you share , hence they can execute a GIft Deed in your favour , or release their share after executing a Release Deed.
- Further, your cousin will not face any tax liability , at the time of transfer the said property in your name .
The legal heirs of your deceased aunt can transfer the 50%share of property now lying on their mother's name to you in the capacity of legal heirs/successors in interest by executing a registered gift or a settlement deed jointly.
Subsequent to this mode of transfer you will become the absolute owner of the entire property.
Release deed will execute and Captital gain tax on cousins and stamp duty on registrstion of release will levy. No other way out to transfer their share in their life time.
1. First they have to get the property transfered on their name by getting legal heir certificate from tehsildar.
2. Then they can relinquish their share by executing relinquishment deed in your favour.
3. By this way there will be no tax implication on your cousins.
1. The Residual Legal Heirs of Aunt, can execute a Registered "Release Deed" without any monetary consideration, in your favor, with mutual & joint signatures. There shall be no Tax implications on them and neither on you.
2. In Mumbai:
Stamp Duty: 500/-
Registration Fees: 1000/-
Gift deed
Stamp duty of 4% will be applicable on 50% market value of the flat
Registration fee, clerkage and lawyer's professional fee additional
No tax implications on both donor and donee
Best option (two options) is to get the share of your cousins transferred to you by way of Release / Relinquishment Deed other option is by way of Gift Deed executed by them in your favour.
First option is advisable than Gift.