Acquisition cost of property in case of HUF dissolution

Hello, 

Sir, 

Once the HUF is dissolved it now needs to be understood that who is the legal owner of the property. Assuming you are the legal owner who has good right, title and interest to transfer such property. In that case 

A. Transfer by way of Gift : Stamp Duty will be 0.5% of the total market value of the property (This can only be availed if you are transferring the property to Blood Relation)

B. Transfer by way of Sale : Stamp Duty will be 6 - 7% (for urban area) & 5 - 6% (for rural areas) of the total market value of the property. (The said rates are subject to government concessions which are enforced by way of gazette notifications from time to time)

C. Transfer by any other mode (Lease/Assignment etc) : Stamp Duty will be 6 - 7% (for urban area) & 5 - 6% (for rural areas) of the total market value of the property. (The said rates are subject to government concessions which are enforced by way of gazette notifications from time to time)

Usually only Modes A and B are preferred as they are less complicated and simpler to execute. 

For more query resolution or any further help, feel free to contact me through OLQ. 

Dear Sir, as per your query,

You can dissolve the HUF by executing and registering a partition deed among all coparceners. This is not taxable under Section 47 of the Income Tax Act. For partition deed: around 4–5% stamp duty + 1% registration of market value (concessions possible for family partitions).

For sale deed: buyer pays around 6–7% stamp duty + 1% registration.

Get the property valued and circle rate verified from the local Sub-Registrar.

For further details & clarification, feel free to contact our OLQ Team for a detailed discussion.