What is Hakka Sod Patra?
A Hakka Sod Patra (or Haq Sod Patra) is relinquishment deed specific to the region of Maharashtra wherein a person legally or formally gives up or releases his legal rights of the said property being relinquished in the name of some other person. This is one of the modes of transferring rights of an immovable property.
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What is the registration procedure for Hakka Sod Patra?
The Hakkaa sod Patra is prepared or drafted by an advocate.
Stamp duty is purchased for execution. However, Maharashtra government has announced that there will be no Stamp Duty applicable on transfer of land, building and estate to legal heirs and successors.
A date is fixed for registration in the Sub-Registrar office.
Government registration fee is paid.
Both the parties and 2 witnesses are required to visit the registrar office on the fixed day for the registration.
Registered relinquishment deed or Haqqa Sod Patra is collected after a week
What are the advantages and disadvantages of transferring a property through relinquishment deed?
This document is most commonly used when a person dies without leaving behind a will and all siblings end-up inheriting the property. Unlike a gift deed, you can draw the relinquishment deed for monetary consideration.
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There are no tax benefits. The term ‘transfer’ includes relinquishment, not gift. Hence, when you are relinquishing property for monetary consideration, it will result in capital gains for the transferor.
If the consideration is less than the stamp duty value of the property, the difference between the stamp duty and the consideration will be taxed in the hands of the buyer.
If you relinquish it without any consideration, the stamp duty value of the property will be its sales price.