Response

As per my view ,according to the Benami Transactions (Prohibition) Amendment Act 2016, which came into force on November 1, last year unless you are a joint holder in the property with your mother, father, or sibling you could go to jail for indulging in benami transactions.According to the amended Act, you can buy property only in the name of your spouse or in any of your children’s name without being a joint holder. So it is advisible to ypu that you either purchase a prooerty on your name or purchase the property having the name of your mother as a joint holder, and later you can transfer the property on her name.

As per the transfer of property act , ownership in immovable property can be transfered effectively through a duly stamped and registered conveyance deed other wise it won’t be a valid transfer. It can be either be a gift deed or a relinquishment deed or a sale deed ( for which payment of sale consideration is required to be shown ).The only way to avoid payment of stamp duty on registration of a deed is to make a” memorandum of record” of a family settlement between mother and son ( if a family settlement that has orally taken place at an earlier point in time and it then later recorded into writing is termed a memorandum of record of family settlement ). Show the share of the son to have been transfered to the mother in the ” memorandum ” and obtain a decree of declaration on the basis of the memorandum . Such a decree will create ownership of mother on the share of son and does not require to be registered .

Reference: The law governing the case is Section 122 of Transfer of Property Act defines a gift as the transfer of an existing moveable or immovable property. Such transfers must be made voluntarily and without consideration. The transferor is known as the donor and the transferee is called the donee. The gift must be accepted by the donee.
The Benami Transactions (Prohibition) Amendment Act, 2016 (“Amendment Act”) came into force with effect from November 01, 2016. The Amendment Act seeks to amend the provisions of the Benami Transactions (Prohibition) Act, 1988 (“Principal Act”) to curb the issues of black money and money laundering in the country.

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LAWAYZ-2023-737