Dissolution of HUF and transfer of property to the coparceners
Have 1 property in HUF which consist of father mother and two married daughters.
I wish to remove that property from HUF ownership and wondering if I should dissolve the HUF altogether and divide shares amongst each co-parcener or alternatively should HUF enter into sale or gift deed with any one of the HUF member. Please guide under the present stamp duty act of Mahahrashtra registration on Rs. 500 stamp paper can be done amongst siblings, which option should i adopt in order that I am not liable to pay regular Registration Stamp Duty of 5% on value and the property can be transferred to individual names on 500 stamp paper?
Asked in Property Law from Mumbai, Maharashtra
1)you can effect a partition of the joint family property of HUF. among the coparceners Partition deed attracts stamp duty and must be registered.
2) Karta or managing member of a joint Hindu family has power to alienate for value, joint family property either for family necessity or for the benefit of the estate so as to bind the interests of all the undivided members of the family.
3) obtain NOC from all HUF member/coparcener for sale of property
4) as per article 46 of Bombay stamp act you have to pay stamp duty on the market value of the separated shares of the property .
5) it cannot be done on Rs 500 stamp paper
You can seek partition and separate possession of your share in the HUF property and get the mutually agreed partition deed registered by paying proper stamp duty meant for it.
This deed of partition will not come under the exemption of stamp duty allowed by the Maharashtra Government for transfers within blood relations.
You will be required to pay the stamp duty applicable as per the market value of the property.
1. Both the recourses are available to you. HUF is dissolved on the partition of property between the members. A partition of HUF means full partition. A partition deed executed among the members and then registered in accordance with the law will sever the undivided status of the property.
2. For gift of a HUF property made by a HUF in favour of a family member the stamp duty has to be paid as exemption is available only where the donor and donee are related by blood.