Transfer of property is in no way any less challenging than finding the right one. For a few the entire process can prove to be quite unnerving. Not anymore. All you need to do is to consider the different ways to transfer the property in India and go with the one that would best serve your purpose. Have a read.
Sale Deed
This is one of the most common ways to transfer the property in India and includes a sale deed being executed between the seller and the buyer. The deed is then enlisted in the sub-registrar’s office and the ownership get’s transferred.
If the seller makes any profit from the deal he has to pay the capital gains tax. The holding period for such sale is not the day when the property is inherited but the actual date when the property was purchased.
Though sales deed is one of the commonest and most preferred routes for property transfer, it is not the one most cost-effective.
Gift Deed
Gift deed is another popular means of transferring property in India. However, Section 122 of the Transfer of Property Act, 1882 makes it mandatory for the property transfer to be voluntary. This is a better method than sale deed as no taxes are included if the property is gifted to a relative. However, stamp duty and registration are mandatory to legalize the transfer which is also irrevocable. In cases when the gift valuing more than 50,000 is made to a non-relative, the recipient has to pay the taxes on the gift received.
Relinquishment Deed
This happens in the case of multiple owners and when one owner wants to transfer his share to another owner. Such transfers are executed through relinquishment deed. Stamp duty in such cases is applicable only on the relinquished portion and not on the entire property. Property transfers under relinquishment deeds are irrevocable.
Will
Property can be transferred through a will as well. However, such a thing can happen only after the demise of the person transferring the property. The person who receives the property through the will is not required to pay any tax. The person making the will can replace or revoke his bill whenever he wants and as many times he wants during his lifetime. After his death his successor is required to apply to the concerned authorities with the will’s copy, succession certificate, and death certificate for the legal transfer of the property.
Partition Deed
One can also transfer the property through partition deed. It is used in transferring jointly-held properties. It is however carried out to split the property so that everyone’s share is clear and defined. Property deeds need to be registered to become effective.
There are a number of ways to transfer property in India. All you need to do is to choose your option carefully and your purpose would be solved easily. For purchasing the property, however, you would need to connect with top real estate property advisor like SMC Realty who can search for you your dream property without any hassles. One simple call can solve your puzzle.
