The transfer of property can be done through different methods in India. Depending on the circumstances, options range from a simple sale to a gift deed to a relinquishment deed. In this article, we’ll look at the top five methods for transferring property ownership in India.
Real estate is one of the most sought-after investment opportunities. Immovable property can be acquired in a variety of ways, and there are numerous circumstances in which you may choose to transfer ownership to your loved ones.
This is the most common method of property transfer. Execution of a SALE DEED can be considered if you own a property and want to sell it outright for a consideration (sale value).
If the seller makes a profit, however, he will have to pay capital gains tax. The holding time for such a transaction is determined by the date of purchase of the property, not the date of inheritance.
As a result, although it is the most popular and straightforward technique, it is not the most cost-effective property transfer method.
You can give your immovable and movable property without exchanging money under this deed. Simply prepare a deed on stamp paper, attest it with two witnesses, and register it with the registrar’s office to give any immovable property. A transfer of immovable property must be registered under Section 17 of the Registration Act of 1908. Otherwise, it will be declared illegal. Moving goods, such as jewelry or an automobile, might be given without registration. The gift deed is irrevocable, and once it is transferred, the beneficiary becomes the legitimate owner.
If you give a property to a relative, there are no tax ramifications. A relative in this context refers to your spouse, sibling, spouse’s siblings, parents’ siblings, and so on.
RELEASE DEED / RELINQUISHMENT DEED
Only when the property in question has a single owner will the methods listed above work. So, what happens when there are numerous owners on a property? And one of the owners wishes to sell his or her share to someone else? Relinquishment deeds are used to make such transfers.
The act of relinquishing one’s ownership rights to a co-owner is known as relinquishment. The stamp duty is only applied to the portion of the property that is abandoned, not to the entire property value.
Property can be transferred for consideration or without consideration through a relinquishment deed (without any exchange of money). This transfer is also irreversible, much like a gift deed.
A will can also be used to transfer property. However, this will only happen after the individual who draughts the will has passed away. The person who inherits property through a will is not obligated to pay taxes. During the lifetime of the individual who creates the will, it can be canceled or replaced at any moment.
Following the death of an individual, the successor must submit a copy of the will, succession certificate, and death certificate to the relevant civil authorities to complete the property transfer process.
When a court order or a local revenue authority order must be followed, a partition deed is usually executed by the co-owners of the property (jointly owned property).
However, in the event of a Settlement Deed, the property is owned by a third party and is settled in favor of people who have never had any prior stake in the land, and the beneficiary’s portion is determined by the settler’s preferences.
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