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Want to transfer your property? You can use these ways written by ET Now Digital New Delhi, published in Timesnownews.com. September 9, 2019

People usually opt to execute a Sale Deed which is also known as a Transfer Deed. But, if you looking to save taxes and being cost-effective, this may not be beneficial.

 

Investment in real estate has always been a preferred option in India. In fact, one can transfer his or her property to designated heirs either through purchase or inheritance. People usually opt to execute a Sale Deed which is also known as a Transfer Deed. But, if you looking to save taxes and being cost-effective, this may not be beneficial.

 

In case you want to give your share of your property to any of your blood relatives, then Gift Deed can be used. Given below are some possible methods to obtain ownership of the property-

 

1. If you want to sell your property then a Sale Deed can be considered. It is actually the concluding part of a property-purchase process. It is an agreement which states that two parties will conclude the sale within the prescribed time period after executing the agreement to sell. It ensures that the ownership of the property is transferred to the buyer. During the registration of the deed, stamp duty and registration fee must be paid. Also, if you are the seller of the property then the taxes on capital gains will be applicable.

 

2. As already mentioned above, if you are planning to share your property amongst siblings, parents, or blood relatives, then Gift Deed is useful. As per Section 17 of the Registration Act, 1908, it is mandatory to register a gift deed for the property. It may be noted that the transfer through a gift deed is irreversible, once transferred, it can not be undone. As compared to the sale deed, the applicable stamp duty is lower in this case. An important thing to note here is that, if the property has been received as a gift, then no tax is levied. Also, tax exemption will be applicable if you receive the property as a gift under Will or via inheritance.

 

3. In case there are more than one owner of the property and one of the co-owner wants to transfer his or her rights to another co-owner, then, in this case, Relinquishment Deed or Release Deed can be used. Just like gift deed, Relinquishment Deed is also irreversible. The stamp duty in this type of deed is applicable once the deed is registered. It is generally used in case there is no Will. If any beneficiary wishes to relinquish his or her inheritance, the rights can be transferred through relinquish deed.

 

4. In case of property-related disputes, when families want to settle the matter out of court. In this regard, they may go for a family settlement agreement which would require to be signed by all the members acknowledging that the concerned agreement was not made through any fraudulent means, force or under any pressure from any family member.

 

5. After sale deed, Will or inheritance is the second most common method of property transfer. One can gain land or property through inheritance or Will deed. In case a person dies, properties are transferred as per the Law of Succession. It is not mandatory to register a Will Deed.