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I am 35 yrs. age Hindu Male. My wife is 34 and son 7 yrs. I got married in 1999. We have been staying with my parents after marriage. My mother expired in year 2005. My father got married to a widow 7 months later. It is now 2 yrs since he got married again.
After his marriage, mine and my wife’s’ relation with my father got spoiled. And I and my dad decided to sell the flat and buy two smaller ones from the sale proceeds of this flat and stay separately.. Agreement of the is signed by both of us but his name is first and mine in second.
Now, I want to be sole owner of one flat out of two to be bought. My father says both flats can be bought in his name only. Later he may gift one flat to me. Looking at our relations, I doubt whether he will gift or transfer one flat in my name. Before selling this flat, I want to make sure, that one flat be in my name right from the date of purchase. Father is of the view that this is not possible. It will attract big Tax liability to him.
Once the flat is bought in his name, even her second wife can claim property after he departs. I want to safeguard my interest and want to leave nothing messy for my family’s future.
Sir, I request you to give guidance as so how to go about for selling and buying properties and concerned ownership issues.What other legal remedies are available?
Thanking you.
Answer Hello Deven,
In a way your father is correct in stating that tax will be attracted if two flats are purchased in two different names on sale of the present flat since the value of the sale and the cost of acquisition of one tenement will be lower and the balance may attract tax liability. In any case if he has to purchase these two flats and subsequently gift one flat, then too the stamp duty and registration charges are attracted. In fact there will be payment on two occasions, one when he purchases the flat and the second time when he gifts it to you. If the tax liability is closer to the cost that will be made for the registration of the flats twice, then you may suggest your father of the better option to pay the tax than cost of registration.
The above suggestion in my opinion will resolve the issue with your father and put it to rest the apprehension that you may have a dispute with your step mother later in life.
Consult a good Chartered Accountant who will be best able to advise you in this regard.
I hope this suffice your present query.
All the best
