Procedure of mutation of property tax in MCDelhi

PROCEDURE FOR MUTATION OF PROPERTY IN
ASSESSMENT & COLLECTION DEPARTMENT
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’ (available at page No. 5 & 6) 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.
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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).
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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 (at page No. 5)
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 (at page No. 6)
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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(C) In case of Power of Attorney / agreement to sell:-
1. Notice in Form-A (at page No. 5);
2. Copy of Power of Attorney duly registered in the office of Sub-Registrar;
3. Copy of Agreement to Sell duly registered in the office of Sub-Registrar;
4. Copy of Will;
5. Receipt of payment duly registered by Sub-Registrar;
6. Application for mutation with Rs.3/- Court fee stamp affixed on it;
7. Indemnity Bond on Rs.100/- Stamp Paper duly attested by Notary;
8. Affidavit on Rs.10/- Stamp Paper duly attested by Notary (Annex-A);
9. Clearance of up-to-date Property Tax;
10. 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.
In case the will is not registered, no objection from other legal heirs in favour of the
beneficiaries may be insisted upon by the Deptt. Indemnity Bond and Affidavit may be
modified subject to facts of each case.
Mutation once allowed, shall not be cancelled without prior approval of the Assessor
& Collector.
Form-A at page No. 5
Form-B at page No. 6
Sample Indemnity Bond at Annexure-1
Sample affidavit (in case of purchased property) at Annexure-A
Sample affidavit (in case of death of recorded owner) at Annexure-B
Sample affidavit {No Objection from other legal heir(s) / coassessee(s)} at Annexure-C
*********
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FORM – A
Form of Notice of Transfer to be given when the transfer has been effected by Instrument
To
The Joint Assessor & Collector
______ Zone / HQ,
Municipal Corporation of Delhi,
Office address———–
New Delhi
I (A.B.) hereby give notice, as required by Section 128 of the Delhi Municipal
Corporation Act, 1957, of the following transfer of property:
Description of the Property:
1. Date of notice
2 Date of instrument
3 Name of vendor or assigner
4 Name of purchaser or assignee
5 Amount of consideration
6 Of what it consists
7 Situation
8 UPIC No. (if available)
9 Ledger & Folio No. (if available)
10 Dimensions of land
11 Boundaries
12 If instrument has been registered, date of registration
13 Remarks
Date of payment of the last property tax
Period of the last property tax paid
Signature
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FORM – B
Form of Notice of Transfer to be given when the transfer has taken place otherwise than by
Instrument
To
The Joint Assessor & Collector
______ Zone / HQ,
Municipal Corporation of Delhi,
Office address———–
New Delhi
I (A.B.) hereby give notice, as required by Section 128 of the Delhi Municipal
Corporation Act, 1957, of the following transfer of property:
Description of the Property:
1. Date of notice
2 Name in which the property is at present entered in the
municipal records
3 To whose name it is to be transferred
4 Of what it consists
5 Situation
6 UPIC No. (if available)
7 Ledger & Folio No. (if available)
8 Dimensions of land
9 Boundaries
10 Remarks
Date of payment of the last property tax
Period of the last property tax paid
Signature
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Annexure-1
(SPECIMEN OF INDEMNITY BOND)
INDEMNITY BOND
(on non-judicial stamp paper worth Rs.100/-)
THIS DEED OF INDEMNITY is executed at______ this____day of ___________200____
by Shri/Smt./Kumari/M/s___________ s/o/w/o/d/o
Shri_____________aged_________resident of____________________ (hereinafter called
the new assessee), which expression shall always include his heirs, executors, administrators
and assigns in favour of the Municipal Corporation of Delhi (hereinafter called ‘the
Corporation’), which expression shall include its heirs, executors, administrators and assigns.
WHEREAS Shri/Smt./Km.M/s________________is the recorded owner of property bearing
Municipal No.___________ and has been the person primarily liable for making payment of
property taxes leviable under the DMC Act to the Corporation.
AND WHEREAS the said Shri/Smt/Km.___________________________________had died
on_____________________________/ has transferred the said property bearing No._______
vide Registered Deed No.__________ dated____________ by way of sale / perpetual lease /
gift-deed / mortgage with possession / exchange of immovable property and the same New
Assessee became the owner of the said property wholly / partly to the extent of
______________share therein distinctly shown in the plan submitted along with the
application for mutation/sub-division.
AND WHEREEAS the New Assessee has now moved an application under Section 128 of
the Delhi Municipal Corporation Act, 1957 (as amended in 2003), read with the Bye-laws
made thereunder for mutation/sub-division of the property referred to above, in respect of the
portion of which he/she is now the owner.
AND WHEREAS pending final disposal of and decision on the aforesaid application, the
Corporation has provisionally agreed to mutate/sub-divide the said premises in favour of the
New Assessee for the purpose of levy/collection of property taxes (only) under the Delhi
Municipal Corporation Act, 1957, on the following terms & conditions:
1. That the New Assessee shall provide to the Corporation all the relevant documents
and information on the basis of which the said mutation/sub-division is claimed.
2. That the New Assessee shall also furnish a site plan of the premises distinctly
showing the respective portion therein of which the New Assessee claims
mutation/sub-division.
3. That the New Assessee also agrees to the revision/re-assessment of the portion of the
premises of which he/she is seeking mutation/sub-division provided that the same is
otherwise warranted under the Act and the Bye-laws framed thereunder.
4. That the New Assessee also agrees that in case by allowing sub-division of the
premises under reference if the rateable value or any portion thereof is reduced to
Rs.1000/- per annum below, the same shall be reckoned with and reasonably
enhanced so as to bring the same out of the exemption limits;
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5. That the New Assessee agrees to make the payment of arrears of property taxes on the
existing rateable values / annual values or the rateable values / annual values that may
be fixed or the demand arising on the taking of any pending increase action or due to
mistake in the calculation of taxes. The New Assessee also agrees that he/she shall
not agitate or object to the disposal of 126 proceedings (since repealed) already
initiated against the previous owners; and
6. That the New Assessee undertakes to indemnify the Corporation against all costs,
damages, losses, claims etc. which the Corporation may have to suffer, undergo or
pay as a result of mutation/sub-division of the property in the name of the New
Assessee.
7. That New Assessee undertakes to file self assessment property tax return and to pay
property tax in time as prescribed under the rules in respect of portion / premises /
property mutated in his / her name.
NOW, THEREFORE, THESE PRESENT WITNESSTH:
That in pursuance of conditions hereinbefore mentioned, which the New Assessee has
accepted without any condition or reservation, the New Assessee hereby agrees to indemnify
and keep harmless the said Corporation against all damages, losses, claims, costs etc. which
the Corporation may have to suffer, undergo, incur or pay as a result of mutation/sub-division
of property bearing No._____ as per plan attached with the application for mutation.
IN WITNESS WHEREOF the New Assessee, as aforesaid, has set and subscribed his
hand on these presents, on the day, month and year first above written.
(Shri/Smt.)
New Assessee
Witness:-
1. ______________________
2. ______________________
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Annexure-A
SPECIMEN AFFIDAVIT
(In case of purchased property)
(on non-judicial stamp paper worth Rs.10/-)
I,_________________________________S/o, D/o Sh.________________________
Resident of__________________________________________ hereby solemnly affirm and
declare as under:
1. That the Property No.___________________________________________
was owned by Shri/Smt._________________________________________________.
2. That the said Shri/Smt.______________ has sold out the said property in the name(s)
of ____________________________________ vide registered sale deed dated __________
executed in the office of Sub-Registrar, New Delhi.
3. That on the basis of above sale deed, I / we (name)___________ have become the
lawful owner of the said property.
DEPONENT
Verification:
Verified at New Delhi, this_________day of _______200_________that the contents of
above affidavit are correct and true to the best of my knowledge and belief and nothing has
been concealed therefrom.
DEPONENT
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Annexure-B
SPECIMEN OF AFFIDAVIT
(In case of death)
(on non-judicial stamp paper worth Rs.10/-)
I,_____________________ S/o,D/oSh._____________ Resident of______________ do
hereby solemnly affirm and declare as under:
1. That the Property No._______ was owned by Shri/Smt._________________.
2. That the said Shri/Smt.______________ has expired on________________
3. That the said Shri/Smt.___________________________________________ did not
leave any Will registered or unregistered.
OR
That the said Shri / Smt.__________________________________has / have left
behind a registered or unregistered Will.
4. That after the death of Shri / Smt.____________________________________ there
are following legal heirs of the deceased:-
1. Shri/Smt._____________________aged_____years, relation____________
2. Shri/Smt._____________________aged_____years, relation____________
3. Shri/Smt._____________________aged_____years, relation____________
5. That the following legal heirs out of 3 above, have no objection to the mutation of the
property in the names of Shri / Smt.__________ & Shri /
Smt.____________________________________________________
1. Shri/Smt.______________________________________________________
2. Shri/Smt.______________________________________________________
DEPONENT
Verification:
Verified at New Delhi, this_________ day of_______________200_________that
the contents of above affidavit are correct and true to the best of my knowledge and belief
and nothing has been concealed therefrom.
DEPONENT
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Annexure-C
SPECIMEN OF AFFIDAVIT
(NO OBJECTION FROM OTHER LEGAL HEIR/COASSESSEE)
(on non-judicial stamp paper worth Rs.10/-)
I,____________________S/o, D/o Shri_______________ resident of___________________
do hereby solemnly affirm and declare as under:
1. That I am one of the legal heirs of Shri/Smt._________________________
2. That I do not have any objection if the Property No._____________ is mutated in the
names of Shri/Smt.________________ & Shri/Smt.________________________________
DEPONENT
Verification:
Verified at New Delhi, this___________ day of__________200_____ that the contents of
above affidavit are correct and true to the best of my knowledge and belief and nothing has
been concealed thereof.
DEPONENT

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6 Comments

  • rakeshkumartiwari says:

    Desire to know that how property can be transferred from the name of late father in the name of three sons with full procedure.

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  • s sheoran says:

    i have purchased a floor in delhi. rest three floors are of the one same owner from whom i have purchased my floor. he is not paying property tax dues pending from year 2004. so i am facing difficulty in getting property mutated as MCD is asking for house tax from 2004 of one floor from me. any solutions?

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  • Kanwal Nain Khanna says:

    Please tell me your fees for prepaation of documents/application forms etc for mutation of DDA Freehold flat in South Delhi MCD as Sale Deed has been registered with Sub Registrar

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  • mintfire says:

    i am nri/indian citizen .my wife died leaving a flat in delhi in her name. i have two children in 40’s both us citizen(may have oci),how do i sell the property
    a) after coming to india
    b) without coming to india thnks mintfire

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  • Randhir Mehta says:

    I have a property in south delhi which was allotted to my younger brother in NRI quota by DDA. This property was transferred on to my name by way of gift to blood relation in the year 1997 by DDA and was registered as free hold in the year 2010. However, mutation was not done at MCD and the same needs to be done. I am presently out of country and wish to know the documents needed to be signed by my brother who is based in Canada. I would be grateful if you can tell me the procedure. The affidavit and indemnity bonds were submitted by me to DDA at the time of transfer in 1997. Let me know if you can help and the charges. I am returning in Jan.2019 and can contact you if you are in the position to help me expedite the process.
    randy

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  • Advocateji says:

    Dear Randhir Mehta, There are many people in Delhi who can help you to get it mutated on your name. The procedure is as follows: (1) You need to pay the demand of property tax. (2) Apply for mutation along with relevant documents (3) Rectify the objections if any of SDMC & pay any more demand. Then the property tax bill will be raised on your name in future. For getting it done, you may get in touch with any or our Advocate, who charges fee, which may be obtained from respective advocates.

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