Gift deed can be executed by your second cousin it should be duly stamped and registered 

it is better to pay stamp duty and get clear and marketable title to property 

If the property was acquired by an oral family settlement and it was in your possession and enjoyment ever since acquisition,  then on the basis of this acquisition you can proceed with a oral or registered partition or family settlement dividing the property to your family members, which will not attract long term capital gains tax. 

For registered documents you will be liable for payment of stamp duty. 

Oral family settlement does not require registration. If want property document than registration is must. 

- Since, you got that property in a family settlement , then after getting the same it become your self acquired property , and you have right to transfer the same to anyone as per your own wish , and none of family member having right over the same. 

- However, as this property is not transfer in your name , then you should apply for mutation in your name after submitting the said family settlement. 

- Further, after getting mutation in your name , you can transfer to any one by way of a family settlement or gift deed.

- Gift deed attract no stamp duty/less if executed in the name of blood related. 

- Further, the gift of any asset  or property made to blood relative is fully exempt from Income tax in the hand of the recipient without any upper limit.

These cases are very common in various Courts of India and Supreme Court of India. A family settlement is an effective alternative dispute resolution mechanism and should be a preferred route for families to protect generational wealth from being marred by disputes. Given the fact that genuine family arrangements/settlements are outside the purview of taxation, this mode of dispute resolution has gained popularity over a period. Civil proceedings in a court are not only time consuming but also a costly affair and therefore family settlements should be a preferred choice for dispute resolution amongst families. Further, as held by the Hon'ble Apex Court there is no alienation (transfer) of property in a family settlement. 

It would be better to have a detailed discussion in this regard with complete documents to decide the correct procedure. 

You may contact my secretary to connect with me for clarification. 

Gopal Verma

Advocate on Record 

Supreme Court of India

Dear client,  

The right procedure to transfer the property without attracting long-term capital gains taxes by the Income Tax department can be complex, and it's essential to consider both the legal and financial aspects.

Gift Deed: If the property was received in a family settlement, you may consider executing a gift deed from your name to the family members who should have legal ownership. While gift deeds are generally subject to income tax, if the property was acquired through a family settlement, there may be specific exemptions. Consult with your CA to understand the tax implications fully.

Sale Deed: You can sell the property to the family members at a fair market value. Ensure that the sale price is reasonable to avoid any disputes with tax authorities. The tax implications will depend on the difference between the purchase price and the sale price.

Family Settlement: If the property was initially received through a family settlement, another family settlement might be considered, but this can be legally complex. Consult with a lawyer to assess the feasibility of this option.

Gift Tax Rules: Keep in mind that there are provisions under the Income Tax Act related to gift tax, and you should understand how these apply in your specific case.

Any transfer other than registered will may incur taxes if you earn income from that property in future. Only transfer will not incur any capital gains if necessary precautions are taken