A Family Settlement Agreement is not treated as a transfer or conveyance; rather, it only solidifies and recognises the pre-existing rights of the members. Therefore, there is no tax implication under capital gains when it comes to family settlements.
FAQ Category: Services
Is there still a chance of future legal disputes once you enter into a family settlement?
A legally sound family settlement is binding on all the involved parties. NRIs can hire a legal counsel to draft or review the Family Settlement Agreement to ensure legal compliance and to make sure the terms are not disputed in future.
What are the benefits of a Family Settlement Agreement in resolving NRI property disputes?
FSA is a cost-effective and time-saving method of resolving NRI property disputes while maintaining harmonious family relations.
What are the key features of a Family Settlement Agreement (FSA)?
FSA is an oral or a written agreement which parties enter into voluntarily for the distribution of a family properties and assets. A written FSA requires registration. FSA does not attract taxation on capital gains as FSA only recognises already existing rights and does not create any new right or title.
Why should NRIs choose family settlement over litigation to resolve property disputes?
NRIs choose to resolve property disputes with families through family settlements, as these agreements aim to avoid lengthy and adversarial legal battles while maintaining harmonious family relations.
What is a Family Settlement Agreement?
Family Settlement Agreement (FSA) is a legally binding agreement reached among family members to amicably settle family disputes relating to ownership, division, or management of properties or assets.
How can NRIs resolve property disputes with family members?
NRIs can either file a litigation proceeding or enter into a Family Settlement Agreement to get a fair share of the family property.
What is the most common type of property dispute faced by the NRIs?
Disputes with blood relations regarding ancestral property inheritance or distribution are the most prevalent property disputes faced by NRIs.
Can a buyer claim compensation along with the refund?
Yes, a compensation can also be claimed if the builder is at fault.