Co-operative housing can’t object to switch by means of present

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Can a member of a co-operative society impact a switch of a flat by transferring or promoting his shares with out some other materials consideration? Can a society elevate any authorized objection to such a switch? Is it essential to register the switch deed with some other authorized physique? If that’s the case, what’s the process? As there isn’t a value or sale concerned, will it entice stamp obligation?

—M. Royson

We’re assuming that the flat in query is located in Mumbai and types part of a co-operative housing society ruled by the provisions of the Maharashtra Co-operative Societies Act, 1960.

From a authorized perspective, there isn’t a distinction in effecting a switch of a flat in a co-operative housing society both by a mere switch of shares issued by such a co-operative housing society by executing a switch kind or by executing a deed whereby each the shares and the appropriate, title and curiosity within the flat are transferred. Whereas the society can not object to both of them, most individuals want the latter in order to doc sure rights and different understanding between the transferor and the transferee.

From the stamp obligation perspective, the Supreme Court docket has held {that a} switch/sale of shares issued by a co-operative housing society would entice the identical stamp obligation as leviable on a conveyance. Due to this fact, the identical quantity of stamp obligation could be payable on a switch kind whereby shares issued by a co-operative housing society are being transferred and on a deed of switch/present deed. Additionally, each devices must be registered underneath the provisions of the Indian Registration Act, 1908, and relevant registration fees will apply.

As per the provisions of article 25 of schedule I of the Maharashtra Stamp Act, 1958, the stamp obligation payable on a switch kind whereby shares issued by a co-operative housing society are being transferred or on a deed of switch/sale deed, might be 5% of the market worth.

As you will have talked about that the switch is just not being finished for any materials consideration, we’re assuming that the flat in query is being gifted. Nevertheless, as per the provisions of article 34 of schedule I of the Maharashtra Stamp Act, stamp obligation is payable even on a present deed. Within the occasion the property is being gifted to a member of the family being the husband, spouse, brother or sister of the donor or any lineal ascendant or descendant, the stamp obligation payable might be 2% of the market worth. If the property is being gifted to anybody else, stamp obligation might be payable as per the provisions of article 25 of schedule I of the Maharashtra Stamp Act.

As per part 123 of the Switch of Property Act, 1882, for the needs of gifting away immovable property, the switch have to be effected by a registered instrument signed by or on behalf of the donor and have to be attested by not less than two witnesses.

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