Recently, The Chandigarh UT estate office had taken a decision to charge 'Unearned Profit' on the properties that are transferred on the will to the persons outside the family. Unearned Profit is defined as the difference between the price paid by the original allottee and the market value of the property at the time of transfer. This drastic step taken by the UT estate office was mainly to curb the underhand sale of properties which are taking place. The estate office had approached the UT Financial Department regarding the percentage to be charged in such cases. Since there wasn't any reply from the department, the estate office had stopped proceeding with such cases.
For past several years, Delhi Development Authority (DDA) and other state governments had been levying unearned profit in such aforementioned cases. As per the norms, it was found out that there wasn't any practice of charging stamp duty on a 'will' which is made within the blood relation. It was brought to notice that over the past few years, transfer of property on will outside the family was widespread which forced the authorities to take such a drastic step. The Assistant Estate Officer Mr. Manoj Khattri held that there are prescribed guidelines issued by the Financial Department which needs to be followed for transferring a property on will outside the family. Mr. Kamaljit Singh Panchi, adviser of Chandigarh Property Consultants Association held the decision unjustified and stated that the UT Estate Office should not charge unearned profit.
Courtesy/By: V.S Krishna
|
04 Mar 2018
