Transfer of property to blood relations

S. C. Vasudeva

Q.I want to transfer my residential/commercial property (in Punjab) to my son. The document writer mentioned that I will have to pay one per cent stamp duty, two per cent cess and registration fees of four per cent on the market value of the property. But according to the Financial Commissioner's order dated May 7, 2014 (No. S.O.28/C.A.2/1899/S.9/2014) the stamp duty has ceased in case of transfer of property in blood relations. Kindly clarify as to what all duties/fees need to be paid in case of transfer of property in blood relation. — Varun Kumar

A.According to the notification issued by the Government of Punjab on May 7, 2014, no stamp duty in whole is chargeable on the instruments pertaining to transfer of immovable property by an owner during his lifetime to any of his blood relations (i.e. children, grand children, brothers and sisters). A press note dated May 20, 2014 clarifies that no stamp duty would be chargeable in case of transfer of immovable property between blood relations. The press note also clarifies that other charges, including registration fee, infrastructure cess etc, will continue to be levied and that such burden is around four per cent in urban areas and one per cent in rural areas. The charges quoted by you in the query do not seem to be in line with the notification as well as the press note issued by the Government of Punjab. You may, therefore, approach the Financial Commissioner's office to obtain the correct information on the lines indicated in the notification and the press note referred to hereinabove.

How can virasat intkal be made?

Q.My father had made a registered Will before an Executive Magistrate in the name my two brothers. The family of my deceased elder brother was, however, excluded from this Will for the property which had been purchased after the death of our elder brother. Please advise what will be the procedure of viarasat intkal in the said case. — karnail singh

A.You have not indicated the nature of property which has been inherited by you and your brother. Presuming that the same is a residential house or a plot, you will be required to get the mutation of the said property done in the names of the legal heirs who have inherited the property. You will have to approach the revenue authorities in case of a residential house in the municipality. In case the property is in the nature of an agricultural land, you will have to approach the Patwari of the relevant area for getting the necessary mutation done in the name of the legal heirs who have inherited the said property.

Relinquishment Deed on a plain paper?

Q.My mother, who had expired about three years back, had executed a Will in favour of her children (including two sisters) in respect of freehold house owned by her in Delhi. My sisters are not interested in their share of property meant for them as per Will (Executed by my mother). As such, my sisters intend to transfer their share of property in my favour. The mutation of the property has not been done so far. The entire property still stands in the name of my mother in the records of the Municipal Corporation, Delhi. Kindly advise about the procedure for relinquishing of their share. The following points may also be clarified:

• Whether Relinquishment Deed can be on a plain paper and or on non-judicial paper.
• Whether the Relinquishment Deed needs to be registered and if so, the name of the appropriate authority.
• In case of registration of the deed, will it attract the payment of stamp duty?
• Whether the stamp duty will be applicable on the market rate of the share of property to be relinquished. — Vishnu Pathak

A.Your queries are replied hereunder:

• The Relinquishment Deed will have to be executed on a stamp paper.
• This deed will have to be registered with the Sub-Registrar's Office based in the city/district where the property is located.
• The deed in this case would be in the nature of a transfer of the immovable property in favour of the person who is beneficiary under such Relinquishment Deed, and therefore, will attract stamp duty on the market value of the property to the extent of the share of property which is proposed to be relinquished.

Till what time can IT assessment be re-opened?

Q.I had constructed a house in 2009-10. I have kept all the bills, cash memos, and other purchase bills of building material and labour expenditure with me so that in the eventuality of any queries raised by any government department I should be able to show them the details of expenditure. I want to know that how long I am supposed to keep these bills and vouchers with me as per legal requirements. — kishore rawat

A.An Income Tax assessment can be re-opened within six years of the end of the assessment year. Therefore, the assessment for the financial year 2009-10 i.e. the year in which you have constructed the house can be re-opened up to March 31, 2017. You should, therefore, keep your records at least for a period of seven years so that you are able to place the evidence in respect of the construction cost before the tax authorities in case the assessment for the financial year 2009-10 (assessment year 2010-11) is re-opened.

Legal rights of heirs in property

Q.My father and his mother, on the basis of Will inherited 50-50 joint family agriculture land. My father has two unmarried children son and daughter lately he remarried without legally divorcing my mother and has a minor daughter from this marriage. Please clarify status of my father, his children from my mother and second wife in the property of

• My father
• My grandmother who has two married daughters. — Aashmeen Kaur

A.It is presumed that the property inherited by your father and grandmother is not a joint family property and was self acquired by your grand father. The reply to your query is based on the said presumption.

(a) In case of a Hindu dying intestate, general rules of succession are contained in Section 8 of the Hindu Succession Act 1956. Any property in such a case devolves on the legal heirs in the following manner:

(i) Firstly, upon the heirs, being the relatives specified in Class I of the Schedule;

(ii) Secondly, if there is no heir of Class I, then upon the heirs, being the relatives specified in Class II of the Schedule;

(iii) Thirdly, if there is no heir of any of the two classes, then upon the agnates of the deceased; and

(iv) Lastly, if there is no agnate, then upon the cognates of the deceased.

Class I heirs include the following:

(a) Son; Daughter; Widow; Mother; Son of a pre-deceased son; Daughter of a pre-deceased son; Son of a pre-deceased daughter; Daughter of a pre-deceased daughter; Widow of a pre-deceased son; Son of a pre-deceased son of a pre-deceased son; Daughter of a pre-deceased son of a pre-deceased son; Widow of a pre-deceased son of a pre-deceased son; Son of a pre-deceased daughter of a pre-deceased daughter; Daughter of a pre-deceased daughter of a pre-deceased daughter; Daughter of a pre-deceased son of a pre-deceased daughter; Daughter of a pre-deceased daughter of a pre-deceased son,

As far as your father's share is concerned, it will devolve upon son, daughters and widows after the death of your father. Your father can make a Will in his life and include or exclude any of the legal heirs. In case a Will has been executed, such a Will would take precedence over the general rules of succession.

(b) General rules of succession in the case of a female Hindu dying intestate and having an absolute property, the general rules of succession are as under. These are contained in Section 15 of the Hindu Succession Act 1956.

(i) Firstly, upon the sons and daughters (including the children of any pre-deceased son or daughter) and the husband;

(ii) Secondly, upon the heirs of the husband;

(iii) Thirdly, upon the mother and father;

(iv) Fourthly, upon the heirs of the father; and

(v) Lastly, upon the heirs of the mother.

Accordingly after the death of your grandmother it will devolve upon the legal heirs referred to hereinabove. She also has a right to make a Will in her life time, including or excluding any of the legal heirs. In case a Will has been executed, such a Will would have aprecedence over the general rules of succession.

I have given reply to your query on the basis of my understanding of the Hindu Succession Act, 1956. But as this is a legal issue, you must consult a civil lawyer before taking any step for arranging the affairs of the family.

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