PARTITION DEED

What is a partition deed? When does one execute one?

A partition deed refers to the legal instrument by which the co-owners of a property divide it amongst themselves. Each co-owner becomes the only owner of a share. the dimensions of the share is mutually decided by the co-owners and recorded on the partition deed. Typically, partition deeds are executed between relations who have inherited a property and become its co-owners.
TEAL INSIGHT
By analysing TEAL’s data repository, which contains details of the documents registered within the SROs across Delhi, we found that partition deeds accounted for 0.8 percent of the entire deeds’ registrations within the city between June, 2002 and November, 2020.
Contents of a partition deed
• Date of partition
• Statement of partition- This refers to to the statement which declares that the property is being partitioned with the consent of every co-owner which the opposite co-owners will relinquish their interest within the property completely after the transfer of the share;
• Name, age and address of the co-owners who are executing the deed;
• Description of the share which is getting transferred to at least one of the co-owners;
• Signatures of the co-owners;
• Names and signatures of the witnesses.

How to register a partition deed in Delhi?

You can pay the stamp tax and registration fee for registering your partition deed online in Delhi.
• Visit the Delhi Online Registration data system (DORIS) website and click on on the ‘Deed Writer’ button
• Select the ‘Partition Deed’ option.

• Visit the e-registration website of Stock Holding Corporation of India and pay the requisite stamp tax and registration fee. Download the receipt after the payment.

• Fix appointment at the Sub-Registrar’s Office (SRO)- you’ll do that on the official website of the Revenue department of the Delhi government.
o Visit the web site and choose the district name, area name and SRO name in whose jurisdiction your property is found .
o Fill within the e-stamp number given on the receipt downloaded from the e-registration website.
o Fix the date and time for a meeting at the SRO.
o You will receive an SMS confirming your appointment at the SRO.

Visit the SRO on the date and at which era your appointment has been fixed with the confirmation SMS saved on your mobile to register your partition deed.

Registration and stamp tax on partition deed

To attain legal validity, a partition deed must be registered with the sub-registrar of the world during which the immovable asset is found . this is often mandatory under Section 17 of the Indian registration Act, 1908. this suggests that the parties involved within the partition, will need to pay stamp tax charges (under the provisions of the Indian Stamp Act , 1899) and registration charge, to urge the partition deed registered.
For example, in Delhi, 2% of the worth of the separated share of the property has got to be paid because the stamp tax on a partition deed. an equivalent rate is applicable on registration of partition deeds in Maharashtra, along side a tenth registration charge. (However, it’s not mandatory for the co-owners to register the partition deed within the state.)
The manner of calculation of stamp tax would be better explained through an example:
Suppose a father, through partition, divides his estate worth Rs 5 crores into three parts, keeping 40% share with himself, while allocating 30% each to 2 of his sons. during this case, the stamp tax are going to be applicable on the 60% of the property value, i.e., Rs 3 crores. Supposing this property is found in Delhi and therefore the applicable stamp tax levy is 2%, then, the brothers will need to pay Rs 6 lakhs, to register the partition deed.