I am asking this question from Mumbai, Maharashtra. My father and his cousin were joint owners of an ancestral property. Through a verbal family agreement made in the 1970s, my father was given this particular property. For some reason, my father's cousin's name was not taken off the Property Card. My father and his cousin have both expired. My father's cousin has children (my second-cousins) who I am in touch with and they have no objection to their father's name being removed. If they execute a Registered Release Deed, is there any Stamp Duty payable as this is ancestral property?
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A release Deed of such a property would attract a stamp duty of 5% Leviable on the market value of each share of the property. The release Deed has to be mandatorily registered with the Sub-registrar of assurances of that particular area.
2) In case of Renouncement by legal heirs of ancestral property Rs. 200/-.
Yes stamp duty payable in all registered deeds for all immovable and moveable property
In Maharashtra there is no stamp duty payable for transfer of immovable property within blood relations.
Therefore the proposed registered release deed may not attract any stamp duty.
Dear Client,
As per Article 52 of Schedule I to the Act, the stamp duty payable on a release deed is (a) 200 if the same is in respect of ancestral property and the release is in favour of the persons named in the applicable Article, or (b) in every other case, 5% of the market value (ready reckoner value) of the property. Since the property is not ancestral property, for a release deed, the latter will apply. Thus from a stamp duty perspective, it is advisable to execute a gift deed rather than a release deed.
With reference to your second question, from a stamp duty perspective it does not matter whether you are a co-owner of the property. In the event your father gifts the property to your wife, the stamp duty payable on the gift deed shall be 5% of the market value (ready reckoner value) of the property, as a daughter-in-law does not come within the aforementioned definition of family member enumerated in Article 32 of Schedule I to the Act.
Thank You
Irrespective of the nature and character of the property, stamp duty is payable at the appropriate rate on the release deed.
Thank you all for your answers... seeking clarification on the "ANCESTRAL" aspect The property belonged to my grandfather and his brother. (First Generation) It devolved upon their children, i.e. my father and his cousin (Second Generation) It has now devolved upon me and my second-cousin (Third Generation) Does this make the property "ANCESTRAL" thereby attracting lower Stamp Duty on a Release Deed?
It is not ancestral property
property which has remained undivided for four generations is ancestral property
This cannot be termed as ancestral property.
This was your grandfather's property which was subsequently divided (orally) by your father and his cousin.
Therefore this becomes your father's own and absolute property.
Since your father's cousin is having a share in the property, his children may relinquish their rights in the proeprty by executing a registered release deed.
In Maharashtra there is not stamp duty payable for transfer of immovable proeprty among the blood relatives.
If it's undivided then it will be ancestral
Dear Client,
If the property is undivided then only it comes under the category of ancestral property. If so then it shall attract Rs. 200 as stamp duty.
Thank you
An ancestral property is one which has been in joint ownership, possession and enjoyment for at lease four generations without being partitioned. In your case, you have accounted only for three generations starting from your grandfather. In the circumstances, you have to go one generation back to verify the characteristic of the property in question.