Apart from Gift Deed and WILL, you can transfer the property to your son by executing Sale Deed in his favour and getting it registered in the jurisdictional Sub Registrar's Office. This procedure will be safe.
Partnership property advice
I reside in Madhya Pradesh. I hold 1 property in partnership firm with me and 4 outside family partners. I want to give my share of property in firm to 1 of my son. I have 3 other sons who have mutually agreed to it also. There is a remedy of gift deed but stamp duty is very high in madhya pradesh. I don't want to go by will also as he will get the title afterwards.I want to give him right away. What is the best way other gift or by will so that he can be safe 100 percent from outside partners and from family also.
Asked 3 months ago in Property Law
Religion: Hindu
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8 Answers
gift deed by father in favour of son attracts concessional stamp duty
There is a concession in stamp duty for gift deeds between close relatives in Madhya Pradesh.
A gift deed is a voluntary transfer of property from one person to another without any consideration. It's usually a cost-effective choice for transfers within families.
In Madhya Pradesh, gift deeds attract 5% stamp duty. However, when property is gifted form one family member to another, the stamp duty is 400 basis points lower: the doner will pay only 1% stamp duty
Dear Client,
You may also consider executing a family settlement deed to transfer your share of property in the partnership firm to one of your sons while avoiding high stamp duty on a gift deed. A family settlement allows for peaceful division of property among family members and if executed without monetary consideration might attract minimal stamp duty unlike a gift deed.
Document and register the family settlement to protect your son's rights against potential claims from outside partners or other family members. In addition, you may like to have the deed of your partnership firm amended to reflect the transfer of your share to your son, so that he is protected by law
Thank you.Hope this answers your query.
@ Sastry JI - Sale deed will attract the stamp duty on market value of property even if i transfer him on book value- STamp duty will be 12-13 percent on market value of property. @ Ajay Sethi @ T Kalaiselvan. -- Gift Duty on immovable property is 7.55 percent. The partnership has immovable property in it. @ T. Kalaiselvan - The stamp duty on movable property is 1 percent not immovable please check and confirm. If possible share source. @Anik Miu- Stamp Duty on Family settlement is 3.3 percent which is less but I have to include all the properties which I am settling and giving to other sons in it which will again increase overall duties. My other sons are ok with Will procedure. Can I make family settlement deed to settle only 1 son and include just the property which I am giving to 1 son. There is mutual consent from all the sons and every member of our family regarding it. They can sign it also if required but is it possible to settle only 1 son in family settlement ??
Asked 2 months ago
it is better to pay the stamp duty and register the gift deed to confer clear and marketable title to property
If you are in confusion by listening to too many ideas and opinions either from this website or outside, you should not hesitate to visit the nearest sub registrar's office and clarify the details and actual requirements that are to be complied with instead of sitting idle thinking of too many options for reducing the stamp duty.
If you want to ensure that your son should enjoy the property independently without any legal hassle in the future along with clear and marketable title, you may better execute a registered gift settlement deed in his favor by paying the applicable stamp duty for the purpose.
@ Ajay Sethi @ T Kalai selvan- Gift option is financially not possible and not prudent also. I am looking to find any other way if possible. I am open to family settlement deed but the registrar agent says that sub registrar will not allow and will consider it a gift. Though its very surprising to me when there is a law of family settlement how they can levy more duty as per their whims and fancies.
Asked 2 months ago
you can submit deed of family settlement for adjudication to collector office for determination of proper stamp duty payable
The registrar cannot levy more stamp duty than it is applicable as per the state stamp duty act.
We may have to go by the law if we want a hassle free future in this regard in order to protect the future interests of the property.