Stamp Duty free transfer of Property in Blood Relation in Delhi

Stamp Duty free transfer of Property in Blood Relation in Delhi

Started
2 July 2020
Petition to
state government of delhi and
Signatures: 111Next Goal: 200
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Why this petition matters

Started by Priyank Gupta

In the year 1990, my father purchased a Property in Delhi but in honour of his father’s i.e. my grandfather’s wish, he got the property registered in my grandfather’s name. Now in circa 2015, my grandfather became terminally ill and seeing an opportunity, my uncle staked a claim to the Property as a legal heir of my grandfather. For obvious reasons, my father decided to get the Property transferred back to his name. So we approached the lawyer’s office for the same. To our utter shock and amazement, the transfer entailed a Stamp Duty of around Rs.25 lakhs, which by no means we were in a position to afford. So as a last resort my grandfather executed a Will bequeathing the property to my father. In 2016, my grandfather passed away.

Immediately upon his death my uncle challenged the Will in the High Court of Delhi. After a lengthy court battle, lakhs of rupees in legal fees and a hefty settlement amount, my father finally became the legal owner of the Property. 

So I set out to research and found that this draconian Stamp Duty on transfer of Property to blood reatives is inhumane at the least. The Govt. of India several years ago, abolished Gift Tax to relatives in the right earnest. Nearby states of Haryana, Punjab and Rajasthan also found it proper to abolish Stamp Duty on transfer of Property in blood relation. But the Delhi state Govt. is immune to this plight of their citizens. In the hunger of meeting budgetary targets, it has continously plunged thousands of people into the misery of legal battles. I am sure, if not many, a large number of people would have lost their ancestral property to the tyranny of this Stamp Duty.

Why should a person wanting to reward a caring son/daughter for his affection be slapped with Stamp Duty? Why should a son/daughter who never cared for his/her parents, acquire interest in Property of his parents? If other state governments have, in the interest of the public abolished such Stamp Duty, why does Delhi continue to charge it? In another incident a man wanted to transfer his property wholly to his wife but could not due to the Stamp Duty. After he died, the children kicked the mother out of her own house and the mother was left to fend for and abode hereself on her own.

One of the primary advantage of abolishing such Stamp Duty, more than the general population to the State itself is that it will lead to drastic reduction in civil suits, reducing burden on overburdened courts thereby reducing costs to the exchequer. 

To the opponents of this, I would like to say my two pence regarding why having a Will is not the right approach in Delhi State. At the outset, the state does not maintain any record of property ownership nor does it record transfer of property. The transfer documents are filed chronologically and no entries are made property wise when property is transferred. Therefore there is no possibility of appointing a nominee. Secondly, a Will requires probate, which depends on co-operation of other legal heirs and also involves massive legal costs. In more than 95% cases, co-operation of other legal heir(s) is either not forthcoming or completely absent. In the absence of co-operation, the execution of Will becomes a moot exercise.

 

In the event that the State decides to abolish Stamp Duty on transfer of Property among blood relatives, many people will be rightfully given their share in ancestral property, there will be a drastic reduction in family dispute.

So kindly sign this petition if you identify anything which affects you.

For any queries regarding this, kindly mail me at psconsultants@live.in

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Signatures: 111Next Goal: 200
Support now