Mutation of Property in Delhi - Is it necessary ?

There’s a whole different sentiment for homes to every different person. Some consider their home as a homage place and treat that place to be the most sacred place and some people just randomly keep it as a basic house which is giving them shelter and protection. But if that sacred place of yours or even your basic house gets in danger due to lack of any legal documentation that it can be really distressing and nasty at the same time. So in this content, you’ll get to know about the process by which you can secure your home from any legal sue process. There is a term which you have come across if you have bought a home or if you are going to but one, the term is “Mutation of Property”. This legal process is equally important in each and every state of India and its mandatory also. Mutation of property basically means the transferring or reverting the property or land from one person to another person with the correct amount of specification and documents. This was made under 128(5) of DMC act and was initiated in the year 1957. There is a lot of processing and documentation which are required to get that home by your name. The Mutation of property is believed to be differentiated into two types one is freehold kind of property and the other type is leasehold property. Before going further with a detailed overview of each type of mutation property we need to first understand that why Mutation of Property is so important in India and how it helps the government as well as the owner.

Why Mutation of property is so required in Modern scenario?

We all know as a citizen of India that it is a responsibility for every citizen of India to pay the tax of due amount till a proper date. Taxes are not only liable to commercial products but they are also liable on the land or home you own. And again it should be your responsibility to pay the tax with no delay. But there are people who don’t pay the taxes and somehow it affects the economy very harshly. The persons who usually does tax evasion doesn’t really understand the importance of their contribution because as we know that small drops any combine to make a big ocean. So this mutation of property papers becomes the key evidence or proof of an owner and about his/her tax payment.

All the papers and records are being submitted in the municipal department of any particular city. So according to the section under which this right or rule has been initiated states that whenever there is any process of mutation that means the transfer of ownership from one person to another then proper documentation is required and both the transferor and transferee need to be present at the time of documentation. Both the party needs to be present to agree that all the transactions are viable and this mutation is going according to their will. There is a little but very important condition related to mutation is that there should not be any outstanding dues related to the tax payment till the date of proclamation or till the date of issuing of application for mutation. All the dues related to taxes needs to clear on or before such specific date of mutation.

So in the above sections, we have discussed what is a mutation of property and why it is so important? But primarily we are going to discuss some of the procedures or you can say rules and regulation which are being required in MCD for mutation purpose. Let’s continue with discussing these aspects first.

Process for Mutation in MCD

There is a section named as Bye-Law 3 of Taxation Miscellaneous Provision of the year 1959, it states that the mutation must be in either form “A” or form “B” depending totally upon the condition. And also it is being stated that all the particulars which are required must be filled up with great concentration and confidence because that information is going to be the ultimate proof for further processing of mutation. Some sub-statements are also there which must be learned if you are going for any mutation purpose. The sub-statements are mentioned below.

Whenever you or the former owner is going to transfer the ownership, both the transferor and transferee needs to give an official application before three months so that the process could be scheduled further nicely without any delay.
The second is the condition is when there is a case of death of any owner who is transferring the property then, in that case, there should be a person after whom the property has been devolved and that particular person is required to submit an official application within 6 months after the death of the original owner.

In relation to the second points, there are some specific points which need to be covered such as mentioned earlier just above that in case of death of any owner who has registered for mutation, a person should be liable who needs to submit a legal application within 6 months just after the date of the person death. This is a very important process just to conduct the whole mutation process easy and smooth.

Also, the person who has undertaken the authority should be well aware of all the decision or transactions which are going on for mutation and non-mutation purpose also. another thing which needs to be taken care of is that if there is any case of death or if it is a hierarchical transfer then a proper will is required and in case of sudden death of owner the person who is in charge is totally subjective to prepare a will and get it sanctioned and the will is required just because to maintain a clean environment and also to confirm that there aren’t any malpractices being done while the process of mutation of property.

But although after such practices there are some more documents required to get the green signal from the accessing officer. So for property who the owner has died or if it’s a case of hierarchical situation then following documents are compulsory and they are must-have:

The first document which is required is the original death certificate of the original owner who died recently or if it’s in case of hierarchical one then you need to submit the original death certificate of your parent or your upper generation.
The copy of will which has been made just to secure the process of mutation nicely.
An affidavit is required with an attached no objection certificate from all the other legal heirs present. This will lead to a mutual decision and this also wouldn’t lead to any dispute further. And this condition applies when the will hasn’t been registered due to any means.
In case of a registered will, no objection certificate is required by the person who has taken all the charges after the death of the original owner.
As the process of mutation continues, the family members’ and alternative heir’s name and address should be maintained and after the mutation process of a registered heir, he needs to intimate to those family members and other alternative heir presents.
A rough outline sketch of property should be made showing different portion on the sketch plan that which portion of the property will be occupied by the family member.
If the mutation is totally a case of inheritance then you have to have all the names of the legal owner in the application and which requires an attachment of document of all cleared up taxes as per the portion they own.
If the mutation is going to be through a registered sale deed then a copy of that particular sales deed is a must. And also in that condition, the mutation is allowed on payment of up to date dues also.
There are many cases of mutation also where the registration can be made under any registered instrument then it is possible that the mutation can be allowed in the name of the purchaser on payment of up to date taxes for the particular portion which has been purchased
There are yet important points which need to be mentioned here is that if there is a dispute which means if a person turns out to be aggrieved then the aggrieved person will have to settle it down with the mutation holder person in the court and the court with deciding according to following document which court has and the decision concluded will be the final one and according to that modification could arise In the mutation.

One special note related to all such points which needs to be mentioned and which is very important is that If there is any instrument of transfer present on the behalf of transferee then a letter must be issued within a span of 15 days so that the transferor could invite any objection if there are any. If there is no objection arose then automatically after 15 days tenure the property will be directly mutated in the name of the transferee.

The basic rules and regulation we have discussed and it’s the time when we discuss some further contents such as fee required for mutation of land or house. So let’s get straightly to the fee structure of mutation:

Fee structure of Mutation of property

As mentioned earlier above many time the basic reason for getting the mutation paper done is the legit prove by which government can see whether the taxes are getting paid time to time of not. You may consider the tax payable under the fee structure or not but it is the main theory behind the mutation of property. The second main thing which needs to be considered is that whenever the process of mutation begun each and every period of assessments which are lined up will cost 100 INR. And also for each appointment, you’ll have to pay 100 INR and along with that, a composition fee is charged which are not mandatory at all. The composition fee cost around 50 INR depending upon the situations.

According, the latest rules of Departmental instruction the actions needs to be done quickly and it needs to be delayed by any means. From the date of application of mutation or transfers the actions need to be conducted and the processing and according to all the processing and requirement the whole documentation should be done. The fixed tenure of receiving the mutation after the date of applying all the documents is around 15 days from the date issued. But the period now according to the section 128 Act the time period has been made up to 30 days from the date of applying. So you can calculate and claim any complaint against the official if there is any delay more than 30 days from your date of issuance.

There is another condition where if any of your documents are not available then or even the application is missing out then there is a chance of reissuing the application which you have missed anyway. After recollection of all the information and all the documents, further processing can be done easily and after the new documents have been issued after 15 days of that date all the processing should be done. In case of requisite documents if the income tax slip hasn’t been added with that of the documents which are required then the mutation is for sure liable of getting rejected and it can be called off and it should be redirected with the correct amount of documents.

These were some of the additional information which are required and it needs to be taken care of but there is a list of documents for each and every case of mutation so in the next segment we are going to discuss all the types of mutation of property and after that which documentation are required. A proper list will be listed down just to make you receive those content easier.

Conditions of mutation of property are:

The first condition which is very common is for sure buying the property from one person. This is the most basic and most profoundly used in terms of mutation.
Second condition is pure case of inheritance where the first generation transfers the property to the ultimate next generation. There could be one heir or there can be multiple heirs. One necessity which is required is the will which has been made by the person from whom the property needs to be transferred.
The third condition is the transfer of property in the case of power of attorney. The most important document which is required in this condition is the copy of the paper of power of attorney where your and the previous owner name should be mentioned.

The lists of documents required for Mutation of Property in MCD Delhi are listed below:

in case of normal transfer of property:

the notice and all the information should be filled in form A
there should be a copy of the valid instrument of transfer which can be a sale deed.
Possession letter must be included if there is any along with the documents.
Application of mutation is required with affixed stamp paper from the court which is of rs 3/-. So after this application only you can have the processing done further.
Indemnity bond is a very important paper which needs to be affixed with a 100 INR stamp paper from the court only.
An affidavit is required with an affixed 10 INR stamp paper form the court.
The tax payment should be all cleared till the due date and copy of the all the document of all tax payment should be attached with all the documents.

In the case of heritance from one generation to another:

The notice should be filled in notice A in this case also.
The earlier owner who was alive and from whom the property has been transferred to you. The death certification is required of that particular person.
The will is required which was being made earlier by the owner. The copy of that will needs to be attached along with the other documents which are required.
Indemnity bond is required in this condition also which needs to be affixed by 100 INR stamp paper by the court itself.
No objection certificate is required from all the other legal heirs who are still present and this certificate proves to be the ultimate proof that they don’t have any further objection related to the property mutation.
Affidavit is required which should be on the 10 INR stamp paper from the court.
The main thing or you can say the important document is the tax payment clearance without that any process could not be initiated.

In case of power of attorney:

The notice will be filled up with the notice A in this case only.
Copy of power of attorney is required which is being registered in the sub-register office. This gives the prooves that the case is a pure condition of power of attorney.
There must be a copy of the agreement to sell sully registered which allows the official to confirm once that it’s registered plot all in all.
In the case of power of attorney, there must be a will in that case also. So a copy of that particular will is required in this case also.
Receipt of payment is required which is again a legit proof of a viable transaction.
Application of mutation is required which is yet again very important document because all the basic information will be filled up in this particular application only.
Indemnity form is required with an affixed court paper of 100 INR which is very important documentation.
Affidavit is required on 10 INR stamp paper.
With every session or appointment, you are liable to pay 100 INR to get a proper appointment and to make the appointment to the point the payment should be done timely.

Should you get your Mutation of Property done ?

So a detailed overview has been provided in this content about the mutation of property structure in Delhi. How it is important why it is important what are the things needs to be done, how the things need to be done, everything is mentioned. If you really want to have tension-free ownership of your house or land you need to get this paper done as soon as possible because this is the most important paper which can secure the house of your own. This paper is not only beneficial for your point of view but also from the point of view of government.

The government can get legit proof of all your detail with that of your personal details only. Government can check all the update of your tax payment and if you haven’t cleared the payment you are being followed up and after that, you need to pay the taxes. Once you have your property mutation paper done it doesn’t really mean that you are now tension free and you need not do anything more related to the mutation paper but it is a wrong notion. If you have taken the property mutation paper then you need to update that regularly within an interval of 6 months and this is very important because due to a proper update there wouldn’t be any chances of forgery or any wrong transactions of any type of taxes.

So if you really want to lead a life where you don’t want any additional worry related to your house and your house’s paperwork you need to prepare this paper as soon as possible if it’s not done till now. With the help of this mutation of property, you can get a tension-free life ahead related to your home or land property.