Is there a tax-friendly technique for dividing my mom’s property?

My father, my sister and I are the only authorized heirs of my mom’s immoveable property located in Delhi. My father needs that the stated property or realizable worth thereof could also be shared equally by each the kids. What is the appropriate, tax-friendly technique of reaching this division of property? One easy manner could possibly be that my father indicators a deed of relinquishment earlier than the mutation of the property. Is there some other various technique that will likely be tax environment friendly and wouldn’t entail cost of stamp responsibility or some other levies?

—Name withheld on request

As per your question, we infer that your mom had acquired the immovable property in Delhi and such property was not inherited by her from any of her mother and father. We assume that your mom was a Hindu and that she died intestate, i.e. with out leaving a will. Under such circumstances, the Hindu Succession Act, 1956, lays down provisions for the division of property of a Hindu feminine dying intestate.

As per the Act, your mom’s property devolves upon all three of you equally as her class I authorized heirs.

Typically, in such instances, the person holding the one-third share might take into account executing a launch deed relinquishing his/her share within the property in favour of different heirs having some share in the identical property. Another tax environment friendly technique if the intention is to mitigate the impression of the stamp responsibility or different levies could possibly be your father bequeathing his one-third share within the property in his will.

I’m a 70-year-old retired service personnel residing with my spouse and two kids (a daughter and a son). I’ve ready a will on a ₹10 stamp paper and received it attested by a notary. Is this can acceptable as a authorized doc or ought to I get it registered.

—Ajay Kumar Gupta

There isn’t any requirement for a will and final testomony to be notarized or registered. Registration of a will is optionally available in India and is usually thought-about by testators so as to add a layer of authenticity to their wills. Do notice that not registering a will earlier than the workplace of sub-registrar of assurances has no bearing on the validity of such will. The ₹10 stamp paper or the usage of a notary don’t have any relevance. Your will could be acceptable as a legitimate will so long as it’s attested by two witnesses who’ve seen you signing it in individual.

Rishabh Shroff is companion & co-head, personal shopper, Cyril Amarchand Mangaldas.

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Updated: 15 Aug 2023, 10:27 PM IST