Question ID :
44769
082701
A HUF consisting of Father mother and son is existing Does have movable property only There is daughter in law married around two years back and a granddaughter also
a few months old Whether Family settlement is ideal amongst Father Mother and son If Partion deed is opted whether it will attract stamp duty
Posted by
Mahesh Kumar
on
Dec 27, 2024
Filed Under
INDIRECT TAXES
stamp duty is a state levy hence would vary from state to state
Posted by
SIVADAS CHETTOOR on
Jan 04, 2025
Answer ID :
85664
Family Settlement vs. Partition Deed for HUF
Family Settlement:
A family settlement is a mutual agreement among family members to divide assets amicably.
It is typically used to avoid disputes and does not require stamp duty if it only records a past transaction without transferring ownership.
If it results in the transfer of property title, it may attract stamp duty.
Partition Deed:
A partition deed is a legal document that formally divides the HUF assets among coparceners.
In the case of movable property only, a partition may not necessarily require registration.
However, if it involves immovable property, stamp duty and registration charges may apply.
Stamp Duty Implications:
If the partition is complete, it may be exempt from stamp duty in some states.
If the partition is partial or involves immovable assets, stamp duty and registration charges may be applicable.
Consideration for Daughter-in-Law and Granddaughter:
Under Hindu law, a daughter-in-law does not have an automatic right to the HUF property but can claim maintenance.
A granddaughter can inherit her father’s share in the HUF.
Ideal Option?
If the intention is an amicable settlement, a family settlement (preferably notarized) may be a better option.
If a formal division is required, a partition deed should be executed, considering the stamp duty implications.
Posted by
CA. JHA SHANKAR KUMAR on
Feb 11, 2025