LAW BOOK

HT Estates - - Property Classifieds - Su­nil Tyagi

Af­ter my re­tire­ment, I pur­chased a flat from a de­vel­oper. Since more funds were re­quired to meet the cost of the flat, my wife and younger son took a joint loan from a bank. How­ever, my el­der son has also con­trib­uted in clear­ing this loan. Reg­is­tra­tion of this flat has been done in our younger son’s name. To avoid mis­un­der­stand­ing at a later stage, how can I in­clude my el­der son as joint owner of this flat? Will it be cheaper to have this flat trans­ferred in my name in­stead?

— R A Me­hta Since the flat has been reg­is­tered exclusively in the name of your younger son, by virtue of his be­ing its sole owner, he has the right to de­ter­mine whether to share his own­er­ship of this flat with your el­der son. If he is will­ing to have your el­der son as joint owner of this flat, he can ex­e­cute a gift deed of a spe­cific share in this prop­erty in favour of your el­der son. This way, your el­der son can be made joint owner within your life­time. It is im­per­a­tive to make timely and com­plete pay­ment of req­ui­site stamp duty and reg­is­tra­tion fee on a gift deed of im­mov­able prop­erty. Though your younger son can also ex­e­cute a gift deed of this prop­erty in your favour in­stead, it shall be a long­winded op­tion given your ul­ti­mate de­sire to have both sons as joint own­ers.

My brother and I have in­her­ited a house in equal share. We are con­tem­plat­ing giv­ing it on rent and shar­ing the rental in­come. Since both of us are own­ers of this house, whose re­spon­si­bil­ity is it to pay in­come tax on the rental in­come?

—Evea Mary Since you and your brother are joint own­ers of this prop­erty and have agreed to share the rental in­come, your and your brother’s in­di­vid­ual share in the rental in­come de­rived from this prop­erty shall be com­puted sep­a­rately for the pur­poses of in­come tax. My fa­ther had made a gift of a flat in the name of my mi­nor son. We now wish to sell this flat and in­vest in a big­ger prop­erty. Is it nec­es­sary to seek the court’s per­mis­sion be­fore sell­ing this flat as I have heard it is a time­con­sum­ing process?

—Mukesh Dug­gal Yes, since the ab­so­lute and sole owner of this prop­erty is a mi­nor, it can only be trans­ferred af­ter you (as guardian of the mi­nor) have ob­tained writ­ten per­mis­sion from the courts to do so. The court may per­mit trans­fer of this prop­erty to any third party on con­di­tions as the court may deem fit.

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