Mumbai Ancestral House Dispute: What Can I Do?

Ans: Tax implications - Before the chawl goes into redevelopment:-

Rental income: If you receive rental income from the house until the redevelopment, this income will be taxed in your hands and you need to show it in your ITR and pay tax on it.

Tax implications - Once the chawl goes into redevelopment:-

Capital gains: The transfer of the old house for redevelopment will be treated as a sale, and any long-term capital gains arising from the transaction will be taxable at 20% after considering indexation. However, you may be able to claim an exemption under Section 54 of the Income Tax Act, 1961, if you purchase a new residential property within 1 year before or 2 years after the sale of the old house.

Rental income: If you rent out the new flat, you will need to declare the rental income in your tax return.

It is important to note that the above is just a general overview of the income tax implications of the redevelopment of property. It is advisable to consult a qualified tax professional to get specific advice based on your individual circumstances.

Disclaimer: The information provided in this response is for general information purposes only and should not be construed as tax advice. You should consult with a qualified chartered accountant to get specific advice on your income tax situation.

Ans: Your father-in-law (FIL) and his brother purchased a flat in Mumbai. The flat is in their joint names. After your father-in-law's passing, there are questions about how your wife can claim her share. Her uncle claims it was in either-or-survivor mode. You need to understand the legal and procedural aspects of this situation.

The Either-or-Survivor Clause
In property co-ownership, an either-or-survivor clause means that upon the death of one owner, the surviving owner becomes the sole owner. This is often used in bank accounts and property to simplify transfers.

However, this clause's applicability in your situation needs to be verified. The property's registration details and the agreement between the owners at the time of purchase are crucial.

Legal Heirs and Succession Rights
Indian inheritance laws protect the rights of legal heirs. If your father-in-law did not leave a will, the property would be divided according to the Hindu Succession Act. Your wife and her sister are legal heirs. They have a rightful claim to their father's share of the property.

Even if the property has an either-or-survivor clause, the legal heirs can challenge this. The society cannot transfer the flat solely based on the uncle's word. Proper legal procedures must be followed.

Society's Role and Consent
A housing society plays a significant role in the transfer of property titles. They ensure compliance with legal norms and protect members' rights. Your wife's consent and her sister's are necessary for the transfer process. The society cannot delete your father-in-law's name and transfer it to the uncle without this consent.

Steps to Assert Your Wife's Rights
1. Review Property Documents
Check the flat's purchase agreement and registration details. Verify if the either-or-survivor clause exists. Understand the exact nature of the ownership.

2. Obtain Legal Consultation
Consult a property lawyer. They can guide you on how to assert your wife's rights. They will help you understand the implications of the either-or-survivor clause and inheritance laws.

3. Issue a Legal Notice
If necessary, issue a legal notice to the housing society and your uncle. This notice should state your wife and her sister's claim to their father's share of the property.

4. Engage with the Housing Society
Meet with the society's management. Provide them with the necessary legal documents. Explain your wife's rights and request their cooperation in the transfer process.

Potential Challenges and How to Overcome Them
Misunderstanding of Legal Rights
The uncle may not fully understand the legal rights of the heirs. Clear communication and legal guidance can help resolve this.

Resistance from the Society
The society may hesitate to get involved in a family dispute. Providing them with clear legal directives can help them understand their role and responsibilities.

Benefits of Legal Guidance
Clarity and Confidence
Legal experts can provide clarity on complex issues. This helps you proceed with confidence.

Proper Documentation
Lawyers ensure all necessary documentation is in place. This prevents future disputes and complications.

Protecting Your Wife's Interests
Open Communication
Maintain open communication with all parties involved. This includes the uncle, the housing society, and legal advisors. Transparency can help in resolving issues amicably.

Documentation and Evidence
Keep all relevant documents and correspondence. This includes the purchase agreement, any legal notices, and communication with the society. These documents can be crucial in legal proceedings.

Final Insights
Dealing with property inheritance can be complex. However, understanding the legal aspects and asserting your rights can ensure a fair resolution. Your wife and her sister have rightful claims to their father's share of the property. With the right approach and legal guidance, you can navigate this situation effectively.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: It’s challenging when a property situation like this arises, especially with family involved. Let's go through the steps to reclaim your flat in Mumbai from your cousin.

Understanding Your Situation
First, let's break down the situation:

Flat in Mumbai: Owned by you.
Occupied by Cousin: For 40 years.
Legal Perspective
Reclaiming your flat involves legal processes. Here are the steps you need to follow:

Property Documents
Ensure all property documents are in your name. You need:

Sale Deed: Confirms ownership.
Property Tax Receipts: Paid in your name.
Electricity Bills: Preferably in your name.
Mutation Certificate: From municipal records.
These documents prove your ownership and are essential for legal proceedings.

Communication with Cousin
Start with a polite but firm conversation. Explain your need for the flat. Family issues can often be resolved without legal action. If your cousin is reasonable, they might agree to vacate amicably.

Legal Notice
If discussions don't work, send a legal notice through a lawyer. This notice should:

State Your Ownership: Clearly mention you own the property.
Request Vacation: Ask your cousin to vacate within a specific period.
Mention Legal Action: Indicate that you will take legal action if they do not comply.
Eviction Suit
If the legal notice is ignored, you need to file an eviction suit. Here’s how:

Hire a Lawyer: Choose a lawyer experienced in property disputes.
File a Suit: The lawyer will draft and file an eviction suit in the appropriate court.
Court Proceedings: Attend court hearings. Present all your property documents and evidence.
Court Order: If the court rules in your favor, your cousin will be legally required to vacate.
Police Assistance
If your cousin refuses to comply with the court order, seek police assistance. Provide them with:

Court Order: Showing the ruling in your favor.
Property Documents: Proving your ownership.
The police can help enforce the court order.

Alternative Solutions
Consider other solutions to avoid lengthy legal battles:

Monetary Settlement: Offer a financial incentive for your cousin to vacate.
Alternative Accommodation: Help them find another place to stay.
Maintaining Family Relations
Legal battles can strain family relationships. Try mediation or family counseling to resolve disputes amicably. Involve neutral family members to mediate.

Conclusion
Reclaiming your flat in Mumbai from your cousin involves a mix of legal steps and family negotiations. Start with communication, followed by legal notice and, if necessary, an eviction suit. Keep all your property documents ready and consider alternative solutions to maintain family harmony.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in