I own an ancestral property. I would now like to divide this property into a set of one fifth shares -- to be divided amongst my mother, sister, brother, my father and myself (eldest son).
To do this, I understand a partition deed must now be affected and such a document incurs cost of stamp paper and stamp duty to the government. I have been told that I should pay a value of 1% as stamp duty. If my calculation is correct then I should pay over 15 lakh rupee as stamp duty fee to Govt. for this transaction (GLR value * no. sq. feet * 1 per cent).
This seems like a very large amount just to settle my property in favour of immediate family.
Is there something I am missing? Is there a special dispensation with regards to stamp duty for immediate family?
I also looked into an unregistered partition deed as another way to convey.
Appreciate if members could advise the most cost effective (and legally prudent) path concerning transfer to immediate family.
A partition is by mutual consent, a partition deed is executed by the co-owners. The partition deed is required to be registered at the office of the sub-registrar of the place where the property is situated as in case of any other registration. The stamp duty payable in such a case is Rs.1,000/- for each share of the property further, the registration fee will be Rs.500/- More than one person may jointly own property.