| Question And Answer | |
|---|---|
| Subject: | family arrangements |
| Category: | Allied Law, Income-Tax |
| Querist: | BKS |
| Answered by: | Law Intern |
| Tags: | Family Arrangement, family settlement, Stamp Duty |
| Date: | January 26, 2026 |
1] how many generations can it cover ?
2] will 56[2] x affect family arrangements since cousins are not falling under defn of relatives
3] will it attract stamp duty
(1) Family arrangements aren’t limited by generations. However, as family arrangements are supposed to resolve disputes around ancestral property, they can effectively cover up to four generations.
(2) It depends on the terms of the settlement. It it resolves pre-existing rights that the cousins had in the property, it can be argued that there is in fact no “transfer” because new rights are not being created.
(3) If the family settlement is a written deed that effects a partition, transfer, or settlement of property (e.g., like a settlement deed), it may attract stamp duty under the Indian Stamp Act or state laws.