Mr. X and Mr. Y are real brothers and carrying on business jointly for last 40 years. Out of income generated in the joint business, a plot of land admeasuring 333 sq yards was purchased in March 1986 in Mohan Garden (Uttam Nagar) Delhi in the name of Mr. X.
The said land is under registered General Power of Attorney (GPA).
Mohan Garden (Uttam Nagar) was an unauthorized colony and it has been recently authorized by the Delhi Government.
Now in the year 2014, Mr. X and Mr. Y have decided to make division of their joint properties and businesses. It has been mutually decided that Mr. X will take away the business and Mr. Y will keep the said plot.
The market value of the plot as per circle rate is around Rs. 1.25 Cr. approx.
As the property is in the name of Mr. X, the querist wants to know the procedure that how the property can be transferred in the hands of Mr. Y without paying any stamp duty.
The querist understanding is that in the case of gift deed, the Donee (Mr. Y) has to bear the Stamp Duty.
Please advice, whether memorandum of family settlement or partition deed or any other legal document can be a resort to save the Stamp Duty.
The querist would like to ask further that whether the property can be transferred to Mr. Y and his 3 sons under any legal documents without any stamp duty implications.
You are requested to please advice on the relevant issues described above considering the stamp duty and income tax implications.
Asked in Property Law from New Delhi, Delhi
Without payment of stamp duty no proper of deed of conveyance can be executed.
In the present scenario family deed of settlement the same can be divided but stamp duty will have be divided.
1) you have to pay stamp duty if you want clear legal title to property .
2) best option would be that X executes gift deed in favour of Y . stamp duty would be levied at concessional rate . gift deed ought to be registered .
3) for property valued in cores it would be height of stupidity to avoid payment of stamp duty .
4) even for deed of family settlement / partition deed stamp duty has to be paid and document has to be registered
Let 'x' execute gift deed in favour 'y' and pay the stamp duty prevailing in his state. In Karnataka stamp duty for gift deed between blood relatives is very less.
1. Ther is just no way by which the said property of 'X' can be transferred to 'Y' without paying stamp duty,
2. If any short cut evasive way is opted for evading payment of stamp duty for affecting the said transfer of property, it can lead to serious problem later on.
No way out for avoiding stamp duty and such deed positively brings serious problems at a later stage. The best course would be to get gift deed executed,pay stamp duty and get registered.
Advocate, New Delhi
Please see the link
GPA between blood relations can be registered with stamp duty of Rs.100/- and registration fee of Rs.4/-
Two witnesses alongwith identification documents need to be present during presentation of documents.
Is it correct
Asked 3 years ago
1) yes it is correct that GPA can be given in favour of blood relative for sale of property . stamp duty would vary in each state .
2) however please note that GPA ceases on death of the principal . if X gives POA in favour of Y on X death POA ceases .
3) A power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property.Even an irrevocable attorney does not have the effect of transferring title to the grantee. So, power of attorney does not convey ownership.
1. With GPA, one gets the Power to act as mentioned in the POA which includes, inter alia, execution of sale deed,
2. POA itself is not an instrument conveying the Title of the property for which one shall have to execute & register Deed of Conveynance,
3. While registering the Deed of Conveyance, you are required to pay stamp duty.