29 September 2010
I have a property which i am confused between release deed or gift deed.I am having an family settlement.The property will be gifted or released by a family member i.e my husband's brother's wife.Please tell me which will be less costly & what will be the tax in both the scenario.thank you
29 September 2010
Release is also specie of transfer of property a Release in fact may amount to a conveyance or a gift or an exchange. If a person releases his vested right or interest in a property for consideration, it is nothing but a conveyance or sale. If he releases his vested interest without consideration but only for natural love and affection it will amount to a gift. If he releases his interest in one property in favour of another in consideration of that other person releasing his interest in another property in favour of the former, the transaction is nothing but an exchange or partition.
The description release is applied when the transfer is not of the whole property but only of an interest in it and that to in favour of another who is also interested in the property and he is not a stranger.
Releases are mainly of two types namely;
1. A form of conveyance by which an interest in land or in goods and chattals is transferred by one person to another who has already a vested interest therein and;
2. A discharge or renunciation by one person of some right of action or claim, which he has against another or against another property.
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