Procedure for Mutation/Sub-Division of Property in Municipal Corporation of Delhi

Procedure for Mutation of Property in MCD
Mutation of property is simply the change of title ownership under certain conditions such as sale/purchase or death of an owner and even if the property is bought through a power of attorney (PoA). Through mutation, while the new owner gets the property in his name, the government is able to charge property tax from the right owner.
List of Documents required for Mutation /Sub-division -

(A)  In case of Sale-deed:
1.      Copy of Sale-deed
2.      Application for mutation  with Rs.3/- Court fee stamp affixed on it
3.      Indemnity Bond on Rs.100/- Stamp Paper.
4.      Affidavit on Rs.10/- Stamp Paper.
5.      Clearance of up-to-date Property Tax.

(B)   In case of Death:
1.      Death Certificate
2.      Copy of Will or Succession Certificate.
3.      Indemnity Bond on Rs.100/- Stamp Paper.
4.      Affidavit on Rs.10/- Stamp Paper duly attested by Notary.
5.      Clearance of up-to-date Property tax.

(C)   In case of Power of Attorney:
1.      Copy of Power of Attorney.
2.      Copy of Will.
3.      Receipt of payment duly registered by Sub-Registrar.
4.      Application for mutation  with Rs.3/- Court fee stamp affixed on it
5.      Indemnity Bond on Rs.100/- Stamp Paper.
6.      Affidavit on Rs.10/- Stamp Paper.
7.      Clearance of up-to-date Property Tax.

As per departmental Instructions on the subject, in case of death, a copy of Will or succession certificate is required to ensure that there is no malpractice in mutation cases.  However, where the Assessing Officer is satisfied that there is no malpractice in the claim of mutation, the following documents may only be insisted upon for the purpose of sub-division and/or mutation in respect of such properties:

(i)         Death certificate of the original assessee.
(ii)        Affidavit together with No Objection Certificate from the other legal heirs of the      deceased or their successors in interest.
(iii)       Indemnity bond containing an undertaking of the executant that he shall indemnify the Corporation in the event of dispute arising from the mutation made upon his application.
(iv)       Rough site plans showing different portions of the building and the signatures/thumb impression etc. of the persons occupying these portions.

 If entire building /plot has been sold, mutation may be allowed on payment of up-to-date dues.In case of sale by agreement to sell on Payment of Transfer duty on prevalent rate   If a part of the building/plot has been sold, mutation may be allowed in the name of the purchaser on payment of up-to-date taxes for the portion purchased, Sub-division will, however, not be allowed if the sale is not through a registered document/instrument

In case of inheritance of a property by more than one legal heirs, mutation/sub-division in the name of all the legal heirs may be allowed subject to clearance of up to date taxes by each of them for their respective portions.  However, sub-division will be allowed only if physical division exist.  The case of each legal heirs has to be decided independently regardless of payment or non-payment by others for their respective portions.·

As per provisions of section 128 of DMC act, 1957 (as amended in 2003) whenever the title of any person, primarily liable for the payment of property taxes on any land or building, is transferred, the persons whose title is transferred and the person to whom the same is transferred shall give, within three-months, a notice of such transfer to MCD.  The notice has to be given by the transferor as well as the transferee.  If any notice under Section 126 (since repealed) is pending, the liability for the increased rate -able value after the date of transfer shall be that of the transferee.  As such, the transferee should ensure that either the pending proposals are decided, additional taxes are paid by the transferor. It is, therefore, required that whenever the transferees present documents for transfer, a letter is to be issued to the transferor inviting objections, if any, in respect of the claim for mutation and consider objections received, if any, within 15 days of the issue of such letter.  If no objection is received within 15 days, the property may be mutated in the name of the transferee, subject to fulfillment of other conditions.

As and when there is death of the person primarily liable for payment of taxes, the person on whom the title of the property devolves, should within six months of the death, apply to the MCD about the devolution of the property on the legal heirs so that property mutations takes place.  The person on whom the property devolves should be cautious in moving for transfer in municipal records as early as possible as there has been cases whereby some of the legal heirs got the property mutated in their names to the exclusion of others.

The mutation in the municipal records is for the purpose of payment of property taxes and it does not mean a legal title in the name of the person in whose name the property has been mutated in the municipal records.      

Transfer Duty: Prevalent rate of transfer duty is 3% of consideration amount.    
Mutation Fee:  However, under the DMC (Amendment) Act, 2003, for each apportionment, fee of Rs.100/- is to be paid, along with composition fee of Rs.50/-(wherever applicable).

As per latest Departmental Instruction No.1 issued vide No.Tax/A&C/PC/SAU/2005-06/7 dated 26.4.2005, on the subject, with a view to develop mutual trust with the tax payers and the department and also in order to facilitate the early disposal of the mutation applications, it is henceforth ordered that immediately, on receipt of the application for mutation/transfer of the particular property, the applications/requests should be got scrutinized/examined by the department in accordance with the instructions earlier issued from time to time on the subject and in case, if the application, so received, is in order and all required formalities such as payment of Transfer Duty, Composition Fee and clearance of dues where-ever is required and complete, the mutation may be allowed within 15 days of the receipt of the application under intimation the applicant. 

Further, in case of any deficiency, a letter to the applicant must be sent within 15 days of the receipt of the application in the department and on receipt of the required information/documents called for, are submitted, the mutation case be processed further and final orders allowing the mutation are passed under intimation to the applicant within 15 days of the submission of the such documents/information.