Legal Question in Real Estate Law in India

does release of property attracts payment of stamp duty?

my mother & i purchased few properties with me as the joint owner after my fathers demise which are currently valued at around 50 lacs as per govt valuations .my elder brother is staying separate since many years , & he has no interest in the above . my lawyer tells me that i will have to pay stampduty to get the 25% share released in the above to my name . my questions are as follows 1) what will be the rate of stampduty , is it on concessional basis 2) what will be the rough amount work out to ,if i have to pay that

3) if my brother gifts me the bal 25% share , will he be liable to pay the gift tax or the capital gains tax


Asked on 9/05/08, 1:49 am

2 Answers from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: does release of property attracts payment of stamp duty?

You do not need a gift tax, nor you will need to pay any duty.

Since it is all within the family, you should draw a "Family Settlement" , get it registered and apply for name change.

There may also be some procedure prescribed by "Local Authority" of the area for "family transfers". Approach the local authorities and obtain necessary forms, if they have prescribed any procedure.

there may be minor fees involved which you may have to deposit with the local authority. Hopefully, you may be able to avoid payment of stamp duty.

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Answered on 9/05/08, 6:21 am
Shrichand Nahar S.V.Nahar, Advocate

Re: does release of property attracts payment of stamp duty?

Some states have concessional rate of stamp duty for gift to near relatives. You have not specified your state.

Your brother may not be liable for gift tax or capital gain tax. However, you need to check this with his Chartered Accountant.

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Answered on 9/05/08, 2:02 am


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