Income tax

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devpal (Querist)

05 February 2018 Sir, I own a flat jointly with my brother. My brother owns half share in the flat. His share value is Rs. 6.50 lakh. After a family settlement he now wants to relinquish his share in the flat without taking any consideration. I have heard that in case of relinquishment without consideration the stamp duty for the relinquishment deed is taken as the sales price. The stamp duty will be 7% of 6.50 lakh that is 45,500. So, my brother will have to pay tax on this amount. Is this true? If this is not true please advice who will have to pay tax and how much tax will be paid

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

05 February 2018 Register a gift deed no tax payable and stamp duty very less.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

06 February 2018 Gift deed is better option & Stamp duty will also be Nominal

devpal

devpal (Querist)

06 February 2018 Thank you, but a gift can be challenged later on by my brother's children, so i want to get the transfer done by a relinquishment deed, Please advise.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

06 February 2018 Take legal advice on it. You can obtain signature of brothers children on gift deed which can't be challenged.

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