Relinquishment of rights in ancestral property

This query is : Resolved

Sandeep (Querist)
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12 June 2014 Due to death of both my father and grandfsther in my family, All my aunts{my bhuwa} requested me to get Relinquishment Deed,By which they Loose Right to claim any Financial Interest, in my ancestral property My Query 1.Is Relinquish of Rights of ancestral property Attract Capital Gains?? 2.Should relinquishment deed REGISTERED compulsory as i am now PLANNING TO GIVE it on RENT?? Note-there is no consideration

Nikhil Kaushik

Nikhil Kaushik (Expert)
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12 June 2014 1. relinquishment in favor of family member is anyways covered under 56(2)(vii). So no tax liability arise.

2. it is always preferable that you register the deed

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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14 June 2014 Deed of relinquishment is treated as Gift and for that you have to pay the stamp duty and as this relates to immovable properties it has to be compulsorily registered. After registration do not forget to get the properties mutated in your name and collect the certified copy of the mutation done in your favour.

Since the gift is from close relatives no capital gain is applicable