Answer Book question

We want to divide the family property among ourselves. Which deed, and what will it cost in stamp duty?

Use a partition deed (co-owners dividing what they jointly hold), a release deed (one co-owner giving up a share to another) or a settlement or gift deed (a parent giving to a child). Kerala charges concessional stamp duty for transfers among close family members, far below the rate for a sale, and the concession is the whole reason to use the right deed. Get the current rate table from the Sub-Registrar before you draft, because the Kerala Finance Acts have revised these rates more than once; a deed drafted as a 'sale' between siblings to save lawyer's fees can cost many times more in duty.

By Kerala Rising · ·

Short answer

Use a partition deed (co-owners dividing what they jointly hold), a release deed (one co-owner giving up a share to another) or a settlement or gift deed (a parent giving to a child). Kerala charges concessional stamp duty for transfers among close family members, far below the rate for a sale, and the concession is the whole reason to use the right deed. Get the current rate table from the Sub-Registrar before you draft, because the Kerala Finance Acts have revised these rates more than once; a deed drafted as a 'sale' between siblings to save lawyer's fees can cost many times more in duty.

Real life

Three siblings inherit 60 cents and a house in Ranni. A broker suggests two of them 'sell' their shares to the third. Registered as sales, duty is charged at the full sale rate on fair value. Drafted as release deeds among co-heirs, it is charged at the family concessional rate. The difference on a ₹1 crore property runs into lakhs.

What this means

The Kerala Stamp Act, 1959 Schedule sets duty by instrument. Partition among co-owners, release of a share to a co-owner, and gift or settlement in favour of family members (spouse, children, parents, siblings, grandchildren, and, under amendments, some others) attract concessional duty, historically a fixed or low-percentage charge subject to caps, while conveyance (sale) is charged at the full ad valorem rate (8% at the time of writing) plus 2% registration.

What this means · continued

The definition of 'family' for the concession is specific and has been widened and narrowed over the years; a transfer to a son-in-law or a nephew may fall outside. Duty is computed on fair value or the stated value, whichever is higher. A partition deed must be signed by all co-owners and registered; an unregistered family arrangement may be valid between the parties but cannot be used to mutate land or support a bank loan.

What this means · continued

Releases by daughters 'for love and affection' are common and valid, but after 2005 a daughter's share is hers to release or keep. For NRIs, a power of attorney executed abroad must be attested at the consulate and adjudicated in Kerala within the statutory period before it can be used.

What to check

The heirs and their shares under the applicable personal law (Land 1) before anyone signs Which instrument fits: partition (everyone takes a piece), release (someone gives up), settlement (parent to child) The current Sub-Registrar fee table for family instruments and the definition of 'family member' Fair value of each piece Land tax paid up, encumbrance certificate, and prior deeds for the chain

What people often miss

Calling a family transfer a sale. Also: partitioning land without a survey sketch; later disputes over exactly which 20 cents are whose are the commonest family litigation in Kerala.

The Kerala / NRI angle

Kerala's Registration Department publishes the fee and duty schedule and has online pre-registration; the document writer or lawyer should show you the duty before doing the work. Stamp duty concessions among family members exist precisely to keep inherited land from being taxed like a sale each generation; use them.

An example

Property fair value ₹1 crore divided three ways. As sales of two-thirds to one sibling: duty and registration at roughly 10% of ₹66 lakh, about ₹6.6 lakh. As releases among co-owners at the family concessional rate: a small fraction of that; confirm the current figure at the Sub-Registrar, which is the point of the chapter.

When this may not be the right answer

If a buyer outside the family is involved, it is a sale and full duty applies. If the co-owners cannot agree, a partition suit in civil court is the route, with court fees and years. Agricultural land ceiling and plantation rules can affect how land can be split.

What to do next

Fix the shares under personal law; get a licensed surveyor's sketch Ask the Sub-Registrar for duty on the specific instrument among family Register the deed; mutate each parcel in the village office

Related questions

My father died without a will. Who gets what? How should siblings divide inherited property fairly? (Vol 1)

Related Kerala Rising help

Property & family (lawyer referral)

Sources and what to verify

Kerala Stamp Act, 1959, Schedule (articles on partition, release, settlement, gift, conveyance), as amended by the Kerala Finance Acts · Registration Act, 1908; Kerala Registration Department fee tables · Kerala Survey and Boundaries procedures for sub-division Last checked: 22 August 2026. Rates, limits and whether you may qualify change. Confirm with the official source before you act. Ask Kerala Rising: Use only general, non-identifying facts.

Sources and what to verify · continued

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Before you act

This page is general orientation, not personal insurance, investment, medical, legal, lending, tax, employment, or professional advice. Rules, rates, deadlines, and decisions can change. Confirm the current position with the named official source and use a licensed or qualified professional where your situation requires one. Kerala Rising does not decide whether you may qualify, approve claims, or promise an outcome.