The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions shared in an article in the  following Q&A which was published by the Mint Newspaper on 26th May, 2020 and the online edition of the same can be found here.

My parents have a flat in a housing society in Gurugram and it’s in their joint names. My father is no more and according to his Will (not registered or probated but notarized and on stamp paper with two witnesses), all his property and wealth went to my mother. Now, she has a Will, dividing all her fixed and movable wealth among her three children. If we need to sell the property after our mother dies, what are the steps we should take for smooth sale? The conveyance deed is original, with the names of both my parents. Since we do not live in Gurugram, we want to avoid running around to different departments. Can you give us the right procedure? Is there any agency that can help us in Gurugram? Will there be any tax liability at the point of sale? Who will need to bear it?

—Anshi Dorairaj

Continue Reading Without a Will, all Class 1 heirs inherit equal share in a property

Eldest Female Coparcener HUF
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The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions shared in an article in the  following Q&A which was published by the Mint Newspaper on 12th May, 2020 and the online edition of the same can be found here.

My father recently passed away. We had an Hindu Undivided Family (HUF). It comprises of my mother, my two brothers and one elder sister. My father was the karta. Can we make our mother or unmarried elder sister the karta? What will happen when the sister gets married?

—Raman Verma Continue Reading Eldest female coparcener can be karta of a Hindu Undivided Family

I’m leaving on a Jet Plane (or maybe not!) CBDT clarifies tax residency for people trapped in India

John Denver famously sang these lyrics in his famous love ballad, “Leaving on a Jet Plane”:

“’Cause I’m leavin’ on a jet plane

Don’t know when I’ll be back again

Oh babe, I hate to go”

When John sang these iconic words in 1966, when flying was quite the luxury, he could not even have dreamed how aptly they can be applied to the terrifying ‘Severe Acute Respiratory Syndrome Coronavirus-2’ (“COVID-19”) virus. With India going into a harsh and strictly enforced total lockdown from March end till May 17, 2020 (likely to be substantially extended), all airports have been shut and flights grounded. No one is going anywhere, whether they like it or not. No emotional love ballads will be sung, no jet planes will fly off into the sunset. A few repatriation flights have started to bring Indians stuck overseas back to India as part of the world’s largest peacetime repatriation effort, and allow some foreigners to leave India for their home countries – but as of now it is still a trickle. Continue Reading I’m leaving on a Jet Plane (or maybe not!): CBDT clarifies tax residency for people trapped in India

Online Wills India
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The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions shared in an article in the  following Q&A which was published by the Mint Newspaper on 28th April, 2020 and the online edition of the same can be found here.

What is the validity of online Will services? Are they enforceable in law? Also, if I am using such services, what are the things I should keep in mind?

—Kumar Continue Reading Online Wills are not equipped to handle estates with any complexity

Codicil Change or Alter a Will
Photo: iStock

The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions shared in an article in the  following Q&A which was published by the Mint Newspaper on 14th April, 2020 and the online edition of the same can be found here.

I am 54. I want to add some more things to my existing Will. Will I need to make a new one or can an existing Will be altered? If an existing Will can be altered, what is the procedure?

—Nirav

Continue Reading You can add or delete parts of your Will through a codicil

Wills In The Time Of Corona - Challenges And Solutions

In these uncertain times of a global pandemic, there is increased interest in succession planning, including through Wills, and understandably so. Yet, there are considerable practical and legal challenges involved in making a Will during social distancing, isolation or quarantine. In this blog post, we discuss these challenges in the Indian context and suggest potential solutions. While it may not be possible to find foolproof solutions, and unfortunately technology is not yet an ally, there are some measures that may help to overcome prevalent complications in creation of Wills. Continue Reading Wills In The Time Of Corona: Challenges And Solutions

India’s Finance Act 2020, COVID–19 & HNIs - An Update

The Finance Bill, 2020 (“Bill”) was presented as the Union Budget on February 1, 2020 (“Budget”) and then introduced in the Lower House of Parliament (Lok Sabha) – it was finally passed on March 23, 2020 with certain key amendments (“Amendment”). Interestingly, this was passed without any discussions in Parliament and received the presidential assent on March 27. Accordingly, the same will come into effect from April 1, 2020 (“Finance Act”).

The Finance Act needs to be seen in light of the ongoing COVID-19 pandemic being played out in India. As India undergoes a 21-day lockdown, post passing of the Amendment, the government is undertaking pro-active measures by way of press conferences to address the pressing needs of the society. To begin with, the government announced an extension of various statutory compliances for taxpayers (discussed below). Next, the Finance Minister (“FM”) announced a COVID-19 relief package for the poor, which primarily covers food security and direct cash transfers to them. Lastly, on March 27, Reserve Bank of India (“RBI”) Governor, Shaktikanta Das slashed the key lending rate by 75 basis points in an emergency move, to counter the economic fallout of the said lockdown. The RBI also permitted all commercial banks and lending institutions to allow a 3-month moratorium on loans. “Banks should do all they can to keep credit flowing,” Mr Das said. Continue Reading India’s Finance Act 2020, COVID–19 & HNIs: An Update

 

Covid -19 and succession planning

 Lawyers are generally very conservative – so it may sound a bit alarmist to hear us say “the world is ending!” At the time of writing, India is coming to grips with the terrifying ‘Severe Acute Respiratory Syndrome Coronavirus-2 (“COVID-19”)’ virus. There is something primal and scary about an airborne threat that can kill you – from something as simple as coming close to an infected person, or touching a door handle, etc. It makes us think about the fragility of life, and the need to protect our loved ones. Some people may believe the steps being taken at present are an overreaction – but are they?

As per the WHO, COVID-19 appears to target the elderly and individuals having underlying illnesses. The WHO mission to China found that 78% of the cases reported as of February 20, 2020 were in individuals between ages 30 and 69. In a matter of barely three months, COVID-19 has infected over 185,000 individuals, resulting in nearly 7,200 deaths, covering 157 countries and territories around the world. The Diamond Princess cruise ship harbored in Yokohama, Japan— was among the lone case involving an international vessel. In India, at the time of writing, 110+ individuals tested positive for the virus, with three fatalities. The virus knows no boundaries, gender or net worth, targeting poor and rich alike. Pandemics are an equalizer in society.

Continue Reading Estate & Succession Planning during the Coronavirus Pandemic

In some Indian states, stamp duty is not payable on a document through which a property has been transferred in favour of a blood relative. (Photo: iStock) – Source: Livemint

The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions shared in an article in the  following Q&A which was published by the Mint Newspaper on 3rd March, 2020 and the online edition of the same can be found at: https://www.livemint.com/money/personal-finance/gifts-deeds-are-not-reversible-so-the-giver-can-t-get-back-the-rights-11583220828729.html

My mother and I co-own a residential property in Mumbai. She has decided to transfer her share of the property to my name. Should we prepare a gift deed or a relinquishment or release deed to execute this transfer? The property has been mortgaged to a bank, but I have obtained a no-objection certificate (NOC) for the transfer. Will I also have to ask the housing society in which the property is located to transfer the share certificate to my name? Can I include a clause in the deed to ensure that if I am survived by my mother, the rights will be transferred back to her upon my death?

—Chirag

Continue Reading Gifts deeds are not reversible, so the giver can’t get back the rights

Pets as beneficaries in trust or will
Image Source: iStock | Livemint.com

The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions shared in an article in the  following Q&A which was published by the Mint Newspaper on 18th February, 2020 and the online edition of the same can be found at: https://www.livemint.com/money/personal-finance/you-can-t-name-your-pets-as-beneficiaries-of-a-trust-or-will-11582011911565.html

I am 61 years old and widowed. I have two dogs and a cat. Can I create a trust in their names to ensure that they are taken care of after my demise? What other options can I explore while planning my estate? Also, what will happen to the trust or any such entity after my pets die?

—Name withheld on request

Continue Reading You can’t name your pets as the beneficiaries of a trust or Will