Transfer the property to a family member.

907 votes

The first brother can relinquish his share of the property in favour of the second brother by way of a relinquishment deed signed by both the parties and registered at the office of the sub-registrar. Stamp duty will vary from 1%-8% depending on the state. There is no discount for relatives, nor are there any tax benefits. Also, both stamp duty and tax will be applicable only on the portion of the property that you relinquish, not on its total value. You can also use this deed to transfer movable property without registration, but it is typically used for immovable property. However, if the first brother decides to 'gift' his share of the property to the second brother, he will be entitled to the following benefits; > Registration is not required > Stamp duty is lesser for relatives

Advocate Mishika Singh LawRato

920 votes

Thank you for your query. Allow me to re-frame your question. A and B are brothers who jointly own a property; A wishes to transfer his share to B. The are a few options that you could consider for doing so. The first would be that A execute a Relinquishment Deed giving up his rights, title and interest in the property to B. A could also execute a Gift Deed. A could even Will it to B. It should be borne in mind that a Will coupled with interest cannot be revoked and could be a good option as would not be required to pay stamp duty and neither is registration compulsory for a Will (though advisable). Executing a deed would require you to pay stamp duty which would depend on the value of the property and which revenue district it comes under. The document would also have to be registered. If you would prefer to avoid stamp duty then A could execute a Power of Attorney or a Will as I have stated. However, you must speak with an Advocate about the same as Powers of Attorney and Wills can be usually revoked. An Advocate could structure it in such a manner that it would be irrevocable thereby protecting the interest of B. Do let me know if I could be of any further help to you.

LawRato LawRato

574 votes

In your case, it appears that the property is half owned by each of two brothers. This being the situation, if one wants to transfer his share in the property to the other, then it may either follow normal course of sale and purchase or gift. Accordingly, the registration will be required.

LawRato LawRato

350 votes

The registration of a gift deed under the Transfer of Property Act is compulsory. Under this act, the gifting of property must be supported by an instrument or document signed by the person giving the gift or by their representative. It should also be witnessed by two witnesses.

Advocate Chikirsha Mohanty LawRato