Both deeds deal with jointly-owned property among co-owners, which is exactly why they get confused with each other. But they solve completely different problems - one is for when everyone wants to keep a share, and the other is for when one person wants to exit.
Partition Deed vs Relinquishment Deed - Side by Side
| Feature | Partition Deed | Relinquishment Deed |
|---|
| What it does | Divides property so every co-owner gets their own separate portion | One co-owner gives up their share in favour of another co-owner |
| Who ends up owning what | Each co-owner independently owns their specific portion | The remaining co-owner(s) own the whole property |
| Stamp Duty (Delhi) | 2% on the value of the lower (smaller) portion only - larger portion exempt | Rs.100 flat |
| Registration fee | 1% of the lower portion value | Rs.1,100 fixed |
| Who can use it | Co-owners who all want to retain a share | Only between existing co-owners of the same property |
| Income tax | Not a "transfer" under Section 47 - no capital gains tax | No capital gains tax |
| Best for | Multiple heirs, each wants an individually-titled portion | One heir exiting, remaining heirs keep it jointly or individually |
The Simple Way to Decide
Ask one question: does everyone want to keep a piece of the property, or does one person want out entirely?
- If every co-owner wants their own separate, independently-titled share (e.g. three siblings each keeping one floor of a building) - that's a Partition Deed.
- If one co-owner simply wants to exit and let another co-owner take their share (e.g. one sibling releasing their inherited share to another sibling who keeps the whole property) - that's a Relinquishment Deed.
Why Relinquishment Is Cheaper: A Relinquishment Deed's flat Rs.100 stamp duty makes it dramatically cheaper than Partition Deed's percentage-based duty - but it only works when one side is genuinely exiting. You can't use a Relinquishment Deed to give everyone their own separate share; for that, you need a Partition Deed.
Can They Be Combined?
Yes, in larger families this is common: some heirs relinquish their shares to consolidate ownership among fewer people (via Relinquishment Deed), and then those remaining co-owners execute a Partition Deed to formally divide what's left into their own individual portions. The right sequence depends entirely on what your family has actually agreed to.
What Both Have in Common
- Neither attracts capital gains tax, since neither is treated as a "transfer" to an outside party in the way a Sale Deed is
- Both require registration to be legally effective and to allow separate MCD mutation afterward
- Both need the consent of all parties involved - a Relinquishment Deed needs the exiting co-owner's voluntary consent, and a Partition Deed needs every co-owner's consent (absent that, only a court-ordered Partition Suit can force a division)
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