What is the stamp duty on partition deed in Delhi?
Stamp duty is 2% on the value of the lower (smaller) portion. The higher (larger) portion is completely exempt (0%). Registration fee is 1% of the lower portion value. For example, if a Rs.4 Crore building is divided equally between two brothers (Rs.2 Cr each), stamp duty = 2% of Rs.2 Cr = Rs.4 Lakh, registration fee = 1% of Rs.2 Cr = Rs.2 Lakh. Total govt charges = Rs.6 Lakh.
Is partition deed compulsory to register?
Yes. Under Section 17(1)(b) of the Indian Registration Act, 1908, any instrument which creates, declares, assigns, limits, or extinguishes any right, title, or interest in immovable property valued above Rs.100 must be registered. A partition deed falls squarely in this category.
Can I do partition without all co-owners' consent?
No. A partition deed requires consent and signature of ALL co-owners. If even one co-owner refuses, you cannot execute the deed. In such cases, you must file a Partition Suit in the Civil Court under Section 44 of the Transfer of Property Act. The court will then order partition and appoint a commissioner to divide the property.
What is the difference between partition deed and family settlement?
A family settlement (or family arrangement) is an informal agreement among family members that does not need registration if no new rights are created. However, for immovable property in Delhi, if you want separate titles and separate mutation at MCD, a registered partition deed is mandatory. Banks also require a registered partition deed for home loans.
Is there capital gains tax on partition deed?
No. Partition among co-owners is not considered a "transfer" under Section 47 of the Income Tax Act. Therefore, no capital gains tax is applicable. This is one of the biggest advantages of partition deed over a sale deed between family members.
Can we do partition of a DDA flat?
Yes, but you need DDA NOC/No Demand Certificate before the Sub-Registrar will accept the deed. Also, for DDA leasehold flats, the partition is of the leasehold rights (not freehold). Each co-owner after partition must separately apply to DDA for name mutation in their records.
What happens after partition deed registration?
After registration: (1) Each co-owner gets a separate legal title to their portion; (2) Apply for MCD mutation to update property tax records; (3) Apply for separate electricity/water connections if applicable; (4) Update bank records if property is mortgaged. We can help with mutation and all post-registration work.
How much do you charge for partition deed?
Our service fee starts from Rs.10,000/-. This includes advocate drafting, document review, e-stamp procurement, SRO appointment booking, representative at SRO during biometric, and registered deed delivery + lifetime soft-copy access. Government stamp duty (2% on lower portion) and registration fee (1% on lower portion) are separate and paid directly to authorities.