Registered relinquishment deed

In case of Release deed, you will be relinquishing your right over the property as now you are also the owner of that property. Relinquishment also amounts to transfer in terms of S. 2(47) and hence cap gain shall attract

But if you make a gift deed then gift to relatives is exempt (S. 47) and hence no cap gain.

Thank you

If we were to do a relinquishment deed instead of a gift deed, then what would be the applicable stamp duty percentage and registration charges that we would need to pay for the relinquishment deed? the flat is situated in mumbai

Also who would have to pay the capital gains tax? my father or me?

In order to avoid the capital gains, can I show that I received Rs.1/- (Rupees One only) to relinquish my rights. This will result in a capital loss situation- is my thinking correct.

This would be as per your state.Rates differ but its nominal

But no matter how nominal it may be,if you relenquish the right then YOU have transferred the property and provisions of S.50C shall attract,accrodingly Stamp Duty value of that Flat shall be deemed to be the full value consideration of the property and after allowing you the cost/indexed cost of house,YOU shall be liable to pay cap gain which will be @ 20% of such gain,which is much much higher than the duty and fees you'd be liable to pay for relinquishment deed.
 

Its not at all recommended to go for relinquishment deed.

Greeting to the experts,

I have one query. we have property in Krishna Nagar in Delhi 50 Sq. Yards. in the name of my Grand Father but my grand father was paased away in year 2000 and my grand father had not done any WILL and they have 8 legal heir from which 3 passed away.

All legal heir wants their part in the property and my quesry is should i go for relinquishment deed or there is any other procedure also.if at the time of relinquishment deed 1-2 legal heir is not present and they said they will not come for that deed so what will be the process for the same and what is the charge for relinquishment deed. if relinquishment deed done after that what we have to do for sell or collabarte the property

Please help me.

Thanks in advance.

Regards,

Vineet

+91-9716675642
 

Hi Sir.  In the query by Akash (earlier thread),  Since he is relinquishing the rights in the property, and property will then be owned by father, where is the capital gains coming to him? 

Since his father is now absolute owner of the property, Akash is free from any captial gains.

Is my understanding correct ?

Sorry Vineet Kumar, I forgot to reply to your querry. If the query still exist kindly let us know.

@ Nikhil Krishna There shall be capital gain since he has relinquished his share in the property in favour of his father and hence affected a transfer within meaning of S.2(47).

Although TOTAL partitoin of HUF is not liable to tax but the case here is not covered in this.

S.2(47)

"transfer", in relation to a capital asset, includes,—

 (i)  the sale, exchange or relinquishment of the asset ; or

 (ii)  the extinguishment of any rights therein ; or

(iii)  the compulsory acquisition thereof under any law ; or

(iv)  in a case where the asset is converted by the owner thereof into, or is treated by him as, stock-in-trade of a business carried on by him, such conversion or treatment ; or

(iva) the maturity or redemption of a zero coupon bond; or

(v)  any transaction involving the allowing of the possession of any immovable property to be taken or retained in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882) ; or

(vi) any transaction (whether by way of becoming a member of, or acquiring shares in, a co-operative society, company or other association of persons or by way of any agreement or any arrangement or in any other manner whatsoever) which has the effect of transferring, or enabling the enjoyment of, any immovable property.

thanks for showing interest in my query sir,

the query still pending and now the question is i had given relinquishment deed in Sub Registrar Office the relinquishment deed is in favour of my father by two legal heirs they are my Aunties (bua's) but sub registrar making objection in that is the 2 legal heirs cannot transfer their share to my father they have not transfer their both share to all balance 6 legal heirs is that correct in my opinion it is not so you are requested to please advice us that sub registrar objection is logical or not.

When your Grand father died intestate , all the legal heir would equally be having the right in that estate.

Originally, there were 8 heirs out of which 3 died, but still the heir of those 3 can have the right in that property. How are 6 heirs remaining ???

S. 10 of Hindu Succession Act

Distribution of property among heirs in class I of the Schedule.

6 heirs remaining because 2 heirs had relinquish their share to a single heir this is the objection put by sub registrar that how 2 legal heirs can transfer their share to one legal heir they have to transfer their both share to all balance 6 legal heirs.

No, they can transfer their share to anyone. If he is refusing then ask him to give a written letter signed by him and telling that its not valid. A rejection order for non registeration against which you can take action.

Also we have another site , lawyersclubindia , there you will be able to get a detailed reply .

Dear Sir,

I want to ask one more thing that Sub Registrar Authorty has said that your relinquishment deed as per SDM opinoin  it will be treated as a gift deed so that they charged the stamp duty and they send the Letter to collectors of  stamps for take necessary action but the share transfer by parties are in blood relation so how they can called relinquishment deed as gift deed