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PROCEDURE FOR MUTATION OF PROPERTY IN MUNICIPAL CORPORATION OF DELHI

Change of name of taxpayer u/s 128(5) of the DMC Act is culmination of notice of transfer / devolution made to MCD and is popularly called mutation. The mutation in the municipal records is for the purpose of payment of property taxes only 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.

Section 128 of the DMC Act, 1957 provides for giving a notice of transfer or devolution of the property. According to this section, when the title of any property is transferred, the transferor and the transferee have to give to the Commissioner, MCD a notice of the transfer of the property so that the name of the transferee is recorded in the municipal records. One of the conditions for the mutation is that no property tax should be outstanding on the date of intimation of transfer or the same may also be paid before giving notice of transfer. If notice under the Act has not been given by the transferor and transferee, liability for payment of property tax will continue to be that of the transferor, till the transfer is recorded in MCD record. In case of death of a person primarily liable for payment of property taxes, the person(s) on whom the title of the property devolves should give such notice. The effect of actions u/s 128 of the DMC Act is neither an approval of sub-division of the property nor a confirmation of title for ownership of the property for any other purposes under the Act.

Procedure for giving notice for Transfer of Property / Mutation:-

As per Bye Law 3 of the Taxation Miscellaneous Provisions Bye Laws, 1959, the notice regarding transfer of title required to be given under Section 128 shall be either in Form ‘A’ or Form ‘B’ as the case may be, and shall state clearly and correctly all the particulars required by the said form.

a) Whenever the title of any person to any land or building is transferred, both the transferor and transferee shall give notice of such transfer within a period of three months after the execution of the instrument of transfer or after registration / transfer is effected {Sec 128(1)};
b) In case of death of an owner, the person on whom the title devolves shall give notice of such devolution within six months from the date of death of the deceased {Sec 128(2)}

Note:-

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 mutation of property takes place. The person(s) 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.

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 be insisted upon for the purpose of mutation in respect of such properties:

(i) Death certificate (original copy) of the previous assessee / recorded taxpayer,
(ii) Certified copy of the Will and the codicil (if applicable),
(iii) Affidavit together with No Objection Certificate from the other legal heirs of the deceased or their successors in interest in cases of Unregistered Will,
(iv) In cases of Registered Will, affidavit from the person on whom the title devolves,

Note:-

Prior to allowing the mutation, the name(s) and addresses of the family member(s) and legal heir(s) should be obtained and after allowing mutation on the basis of Registered Will, intimation should be given to those family member and legal heirs.

(v) Indemnity bond containing an undertaking of the applicant that he/she shall indemnify the Corporation in the event of dispute arising from the mutation made upon his/her application,
(vi) Rough site plans showing different portions of the building and the signatures/thumb impression etc. of the persons occupying these portions,
(vii) In case of inheritance of a property by more than one legal heirs, mutation 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,
(viii) If entire building / plot has been purchased through registered sale deed or any instrument, mutation is allowable on payment of up-to-date dues,
(ix) If a part of the building/plot has been purchased through registered instrument, mutation may be allowed in the name of the purchaser on payment of up-to-date taxes for the portion purchased,
(x) In case a person is aggrieved of the order of mutation carried out in favour of mutatee(s), the aggrieved person shall get the dispute settled by the court of law and on the basis of the decision of the Hon’ble Court, necessary modification in the mutation shall be carried out.

Note:-

Whenever the transferees present the instruments of transfer, a letter may 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 will be mutated in the name of the transferee, subject to fulfillment of other conditions.

Mutation fee:-

Under the DMC (Amendment) Act, 2003, and the Bye – laws framed thereunder regarding the apportionment of property tax on such vacant land or building among the several occupiers of such vacant land or building for the current period of assessment or for any preceding period of assessment shall be one hundred rupees per assessee for each period of assessment 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, immediately on receipt of the application for mutation / transfer of a property, the applications / requests is examined by the Department in accordance with the instructions already in force and in case the application so received is in order, the mutation will be allowed within 15 days of the receipt of the application under intimation to the applicant. The period now is 30 days of the receipt of application u/s 128 of the Act.

In case of any deficiency in the application / request for mutation, a letter to the applicant is sent within 15 days of the receipt of the application by the Department and on receipt of the required information / documents, the mutation case be processed further and final orders allowing the mutation will be passed under intimation to the applicant within 15 days of the submission of the such documents / information. In case requisite information / documents are not furnished along with up to date payment of property tax within the stipulated period, the application for mutation may be rejected / filed and intimation to this effect may be sent to the applicant.

Thus the application for mutation is disposed of in 30 days of the receipt of application.

List of Documents required for Mutation:-

(A) In case of Transfer:-

1. Notice in Form-A
2. Copy of valid instrument(s) of transfer – deed of such transfer must be duly stamped and registered. Transfer duty on such stamp duty must have been paid
3. Possession letter / mutation, if any;
4. Application for mutation with Rs.3/- Court fee stamp affixed on it;
5. Indemnity Bond on Rs.100/- Stamp Paper duly attested by Notary;
6. Affidavit on Rs.10/- Stamp Paper duly attested by Notary (Annex-A);
7. Clearance of up-to-date Property Tax;
8. Apportionment fee of Rs. 100/- per assessee for each period of assessment alongwith compounding fee of Rs. 50/- (wherever applicable) for each default u/s 128(1), 128(2) and 128(3) of the DMC Act.

(B) In case of devolution / inheritance:-

1. Notice in Form-B
2. Death Certificate of earlier owner;
3. Copy of Will along with codicil (if applicable) or Succession Certificate;
4. Indemnity Bond on Rs.100/- Stamp Paper duly attested by Notary;
5. Affidavit on Rs.10/- Stamp Paper duly attested by Notary (Annex-B);
6. Affidavit / No objection from other legal heir(s) / co-assessee(s) on Rs.10/-Stamp Paper duly attested by Notary in case of “Unregistered Will” (Annexure-C);
7. In case of Registered Will, affidavit from the person on whom the title devolves;
8. Clearance of up-to-date Property tax;
9. Apportionment fee of Rs. 100/- per assessee for each period of assessment alongwith compounding fee of Rs. 50/- (wherever applicable) for each default u/s 128(1), 128(2) and 128(3) of the DMC Act.

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