LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

What is procedure for creating a release deed?

Vunu (Developer) (135 Points)

23 March 2018

What is procedure for creating a Release Deed for leaving a right of control on certain immovable property? Is the person who Leaves the control (SON) or the person who receives the control (MOTHER) is liable to any kind of tax.

Reply
Follow
Share

21 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 23 March 2018

By way of registered Release Deed, stamp duty paid.....

No tax liability arises when the deal is between mother and son.

Vunu (Developer) (135 Points)
Replied 23 March 2018

Where and what is the procedure to create the Release Deed? Whom should I contact?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 23 March 2018

It is just one type of legal document..... can take service of any local lawyer........

Draft documents are available online, for reference.....

Vunu (Developer) (135 Points)
Replied 23 March 2018

Thank you very much.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 23 March 2018

Most Welcome...

Vunu (Developer) (135 Points)
Replied 23 March 2018

Dhirajlal-ji, Can you help me in my other query?

https://www.caclubindia.com/forum/online-interest-calculator-452940.asp

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 23 March 2018

Interest is calculated every quarter, and added to Principal.......

For incomplete quarter....... it is calculated for number of days of the quarter.

There is no formula for yearly calculation, but gets simplified when added for each quarter!!

& finally, bank calculate the same every quarter, add interest to principal, after deducting TDS, (if applicable) & finally give you statement with Form 16A for every quarter completed........

1 Like

Vunu (Developer) (135 Points)
Replied 23 March 2018

Thank you Dhirajlal-ji

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 23 March 2018

My Pleasure..

MURALIDOSS (INCOME TAX PRACTITIONER) (1302 Points)
Replied 23 March 2018

DEAR SIR,

A PERSON RECEIVED SUM OF AMOUNT 17.50 LAKHS FOR THEIR PORTION OF ASSET SALE (HOUSE & PLOT) FROM ANCESTRAL PROPERTY AFTER DEMISE OF THE OWNER, THROUGH LEGAL HEIRS). HOW TO CALCULATE CAPITAL GAIN FOR THIS?

PLESE SUGGEST.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 23 March 2018

17.50 L is sale value......... deduct sale expenses, if any.........

Being ancestoral property, get valuation of the property as on 01.04.2001 from Govt. approved Valuer......... index it to the CII as of date (i.e. by 2.72)........ that will be the indexed COA.....

Deducting the second value from sale value will give you LTCG........ Divide it as per individual shares of the heirs.

MURALIDOSS (INCOME TAX PRACTITIONER) (1302 Points)
Replied 23 March 2018

17.50 LAKHS IS THE SHARE AMOUNT OF THIS PERSON ONLY.TOTAL AMOUNT IS 87.50 BY 5 PERSONS , THERE IS NO OTHER INCOME FOR THIS PERSON.SALE DOCUMENT WAS EXECUTED ON 06.11.2017 SIR. (LAND -7863305/- +BUILDNG-886695=8750000/-)