One house property purchased in 2007 in name of huf and first daughter . later she got married in 2010. due to recent circular one owner can transfer his/her share of property to another owner of property without paying of stamp duty if transfer is within blood relation. so we want to transfer huf rights to 2nd owner of flat ( the first daughter) with consent of all other coparceners. can we transfer ? whether we will get stamp duty advantage valid till [deleted] ?
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IF HUF CANNOT TRANSFER EXCEPT PAYING 5% STAMP DUTY AS INFORMED BY LOCAL ADVOCATE WHETHER FIRST DAUGHTER CAN TRANSFER HER 50% SHARE TO HUF BEFORE CLOSE OF FY 2021-22 THAT IS [deleted] ? AND IF DONE WHETHER REGISTRATION IS REQUIRED ? PLEASE REPLY ASAP AS VERY FEW DAYS ARE LEFT TODAY FOR [deleted]. THANKS
Property in name of HUF, cannot be transferred to individuals, unless the HUF is dissolved by following due procedure of law
members of HUF can execute a deed of family settlement whereby all other coparcenors will transfer and release their shares to daughter by executing release deed
In Maharashtra state the transfer of immovable property between the blood relations will not attract stamp duty except Rs. 500 towards registration charges.
In the usual type of family arrangement, unless any item of property which is admitted by all the parties to belong to one of them is allotted to another, there is no ‘exchange’ or other transfer of ownership. A binding family arrangement of this type can be made orally, and if made orally, no question of registration arises.
In Tek Bahadur v. Debi Singh and Ors.[8] the Constitution Bench of this Court considered the validity of the family arrangement. The question was whether it is required to be compulsorily registered under Section 17. This Court, while upholding oral family arrangement, held that registration would be necessary only if the terms of the family arrangements are reduced into writing.
If the terms were not ‘reduced to form of a document’, for the purpose of recording the arrangement, registration is not necessary, even though the value is Rs. 100 or upwards.
The amount of stamp duty to be paid in such situation will vary from state to state as per the State Stamp Duty Act. Recently, in its new budget session, government of Maharashtra announced that there will be no stamp duty applicable on transfer of land, building and estate to legal heirs and successors as 5% tax was a burden to pay
First of all if it is a family arrangement then the law is different.
A family arrangement does not involve a transfer, but a settlement in which each party takes a share of the family property by virtue of an independent title which is, to that extent, admitted by other parties.
Though in a family settlement or arrangement there may be sharing of immoveable property, it is not ‘partition’ in normal sense of term. It is well known that a memorandum of past partition does not require registration. But, if by virtue of that document a right is created for the first time in a property worth Rs. 100 or more, it does require registration in view of Section 17 of the Registration Act.
First of all if it is a family arrangement then the law is different.
A family arrangement does not involve a transfer, but a settlement in which each party takes a share of the family property by virtue of an independent title which is, to that extent, admitted by other parties.
Though in a family settlement or arrangement there may be sharing of immoveable property, it is not ‘partition’ in normal sense of term. It is well known that a memorandum of past partition does not require registration. But, if by virtue of that document a right is created for the first time in a property worth Rs. 100 or more, it does require registration in view of Section 17 of the Registration Act.
The said exemption is for individuals and not other legal entity. Anything transferred will incur stamp duty and registration
Dear Client,
A gift of shares to your sister as well as the HUF would be tax exempt as it would be classified as 'property received from a relative' which is specifically exempt on account of section 56 (2)(x) of the Income Tax Act, 1961 (“IT Act") but the daughter cannot gift her share in the HUF property while she is alive but she is fully capable of giving away her share in the HUF property by way of a will.
Thanks & Regards
