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Relinquishment Deed in India – Meaning, Benefits & Step-by-Step Process

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Financial Analyst

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1. Introduction

A Relinquishment Deed is a common legal document used in India when a co-owner of an inherited property wishes to give up (relinquish) their share in favor of another co-owner.
It is widely used among family members during property settlements, inheritance transfers, and partition arrangements.

This Saving Mantra guide explains what it means, its benefits, and the simple step-by-step process to execute a Relinquishment Deed legally in India.

2. What Is a Relinquishment Deed?

A Relinquishment Deed is a legal document where one legal heir or co-owner gives up their share in an inherited property in favor of another co-owner.

Key points:

  • It applies only to inherited or jointly-owned property.
  • The deed must be registered with the Sub-Registrar for it to be legally valid.
  • Considered a transfer without sale (usually between family members).

Example: If three siblings inherit a property and one sibling wants the other two to take full ownership, they sign a Relinquishment Deed.

3. Key Benefits of a Relinquishment Deed

1. Simplifies Property Transfer

It provides a clean and clear way to transfer rights within a family, avoiding disputes or confusion.

2. Legally Recognised by Courts

Once registered, the property rights transfer becomes official and carries strong legal validity.

3. Reduces Litigation Risk

A documented and registered deed helps prevent future conflicts among heirs or relatives.

4. Cost-Effective Transfer

Stamp duty for relinquishment among family members is lower compared to sale deeds in many states.

5. Supports Future Sale or Mutation

After relinquishment, the remaining co-owners can:

  • Sell the property
  • Apply for mutation
  • Apply for transfer of utilities

It streamlines future transactions.

4. Step-by-Step Process to Execute a Relinquishment Deed in India

Step 1 — Identify the Property & Co-owners

Confirm:

  • Property details
  • Names of all legal heirs
  • Ownership share of each heir

Only legal co-owners can relinquish their share.

Step 2 — Draft the Relinquishment Deed

The deed must include:

  • Details of relinquishing party (Releasor)
  • Details of beneficiary party (Releasee)
  • Property description
  • Relationship between parties
  • Share being relinquished
  • Consideration (if any — usually not required)

A lawyer typically drafts the document to ensure accuracy.

Step 3 — Pay Stamp Duty

Stamp duty varies by state but is generally lower for family settlements.
In many states, concessional duty applies when relinquishment is between:

  • Parents and children
  • Siblings
  • Spouses

Always check your state’s latest stamp duty rules.

Step 4 — Purchase E-Stamp or Stamp Paper

You can purchase:

  • E-stamp online, or
  • Physical stamp paper (as allowed by your state)

Keep the receipt as proof.

Step 5 — Visit Sub-Registrar Office

Both parties (releasor and releasee) must visit the local Sub-Registrar Office with:

  • Drafted deed
  • Stamp duty receipt
  • ID proofs
  • Address proofs
  • Passport-size photographs
  • Two witnesses

The Registrar verifies identities and executes the registration.

Step 6 — Signing & Registration

At the Sub-Registrar Office:

  • All parties sign the deed
  • Thumb impressions are taken
  • Witnesses sign the deed
  • Registrar records and stamps the document

Once registered, the deed becomes legally effective.

Step 7 — Mutation of Property Records

After registration, apply for mutation in municipal or revenue records so the beneficiary’s name appears as the new complete owner.

This step is important for:

  • Tax records
  • Property sale
  • Utility transfers

5. Documents Required

  • Draft relinquishment deed
  • Identity proofs (PAN, Aadhaar, etc.)
  • Address proofs
  • Proof of inheritance (e.g., death certificate of original owner)
  • Original property documents
  • Photograph of parties
  • Witness ID proofs
  • Stamp duty receipt

6. Saving Mantra Tips for Smooth Execution

  • Always consult a property lawyer to draft the deed correctly.
  • Confirm all legal heirs are listed; missing heirs may challenge the deed later.
  • For inherited property, keep death certificate and legal heir certificate ready.
  • Verify stamp duty rules of your state — they differ across India.
  • Complete mutation immediately after registration for smooth future transactions.

Disclaimer

This guide is for general informational purposes only. Requirements, stamp duty, and procedures for Relinquishment Deed vary across Indian states. Always consult a qualified legal professional or property lawyer before preparing or signing a Relinquishment Deed. Saving Mantra is not responsible for actions taken based on this guide.

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