Estate planning · Family Settlement
Family Settlement Agreement: resolving disputes without court
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Facts
A Family Settlement Agreement is a private arrangement among family members to distribute property without going to court. All parties must sign. Must be stamped (stamp duty varies by state, usually ₹500-₹1,000 for a settlement, not a transfer). Registered settlement is enforceable. Not registered but stamped = admissible as evidence.
Provisions and law
- Indian Contract Act 1872 | Stamp Act (state-specific)
Analysis
Tax: Genuine family settlement is not treated as a transfer and hence no capital gains tax at settlement stage. SC has consistently held this position.
Conclusion
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LLP agreement filing, Form 3
₹1,999
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