Relinquishment Deed for Inherited Property
A relinquishment deed lets one co-heir give up a share in inherited property in favour of the others. We draft it for your review, work out the stamp duty, and see it through registration and the change in the land records.
What it is
When a property owner dies without a will, the property usually passes to several heirs together. Under Section 8 of the Hindu Succession Act, 1956, a man’s Class I heirs, such as his widow, children and mother, take their shares together. Each is a co-owner.
A relinquishment deed, also called a release deed, is how one of those co-owners gives up his or her share in favour of one or more of the others. It works only between existing co-owners. To pass a share to an outsider you need a sale deed or a gift deed instead.
Section 17(1)(b) of the Registration Act, 1908 makes registration compulsory for non-testamentary instruments that create, assign or extinguish a right in immovable property worth ₹100 or more. A release is one, so it must be stamped and registered with the Sub-Registrar.
Who it applies to
Siblings settling a parent’s house
Brothers and sisters agree that one of them keeps the family home; the others release their shares.
A widow consolidating the property
The children release their shares so their mother holds the house in her own name.
Heirs living abroad
A sister settled in Canada releases her share, so the family can sell or mortgage without chasing signatures abroad.
Why it matters
One clear owner
Banks, buyers and revenue records deal with one name, not five.
Low stamp duty within the family
In Haryana, releasing ancestral property to a listed relative carries stamp duty of just ₹15.
Fewer disputes later
A registered release records each heir’s consent in a document the Sub-Registrar has verified.
Stamp duty on a relinquishment deed
Release deeds fall under Article 55 of the stamp schedule. In Haryana, a December 2008 government clarification fixes stamp duty at ₹15 where the deed releases ancestral property in favour of the renouncer’s brother or sister, son or daughter, father or mother, spouse, grandchildren, nephew or niece, or a co-parcener. If the person receiving the share falls outside that list, duty is charged at the conveyance rate on the market value of the share.
Picture three siblings in Faridabad who inherit their father’s house, where two release their shares to the third. If the house counts as ancestral property, each release carries ₹15 duty. Here is the catch: a house the father bought himself may be classed differently, so we check how the Sub-Registrar treats it.
Separately, Haryana’s order of 16 June 2014 remits stamp duty when an owner transfers immovable property during his lifetime to parents, children, grandchildren, brothers, sisters or a spouse. It may help where the property is not ancestral. We check which rule fits your deed before you buy the e-stamp on e-GRAS.
In Delhi, a release deed pays stamp duty under the Delhi schedule, plus a registration fee of 1% of the value and a ₹100 pasting charge. We compute it from the current rates.
Relinquishment, gift or sale?
| Relinquishment deed | Gift deed | Sale deed | |
|---|---|---|---|
| Who can receive | Only an existing co-owner | Anyone | Anyone |
| Price | Usually none; can carry a payment | None | Yes |
| Haryana stamp duty | ₹15 for listed relatives (ancestral property) | Remitted for listed blood relatives | 3% to 7%, by area and gender |
| Registration | Compulsory | Compulsory | Compulsory |
The choice also changes the tax. Under the Income-tax Act, the definition of ‘transfer’ includes relinquishment of an asset. If the releasing heir is paid for the share, that payment is the sale price for capital gains. In practice, a Ballabgarh heir whose brother buys out his share in cash has a gain to report. Our capital gains tax filing team works out the gain, using the original owner’s cost and holding period.
For the heir who receives a share free, Section 92(2)(m) of the Income-tax Act, 2025 (old Section 56(2)(x)) taxes property received without consideration only if it comes from outside the ‘relative’ list. Brothers, sisters, parents and spouses are relatives, so a family release is normally not taxed in the receiver’s hands.
Documents required
Proof of inheritance
- Death certificate of the owner
- Legal heir certificate or succession papers
- Family tree with all heirs
- Title deed and inheritance mutation, if already done
From each heir
- PAN, Aadhaar and photographs
- For an heir abroad, a power of attorney attested as required
For the registration
- E-stamp paper on e-GRAS
- Registration fee receipt
- Two witnesses with ID proof
How it works
Map the heirs and their shares
We list every legal heir and the share each one holds. If the inheritance is not yet on record, we start with the legal heir certificate.
Choose release, gift or partition
We confirm whether a release fits, or a gift, sale or partition deed suits you better.
Draft the deed for your review
We draft the deed naming the property, the share released and any payment, and every heir reviews it. If a dispute later needs a legal notice or a court case, that must be signed by a practising advocate.
Stamp, sign and register
The deed goes on e-stamp paper. In Haryana it is filed on the online deed registration portal, and the parties attend the Sub-Registrar once.
Move the records to the new owner
The mutation is entered so the Jamabandi or the property records show the new owner.
Timelines
Register within four months
Section 23 of the Registration Act allows four months from signing to present the deed.
Release before you sell
If the family plans to sell, finish the release first, so the buyer deals with one registered owner.
Report a paid release
If an heir is paid for the share, the gain goes into the return for the year of the release.
What happens if the release is not registered
The share does not move
Under Section 49 of the Registration Act, an unregistered release does not affect the property. The heir still owns the share.
Sales and loans stall
A buyer or lender will ask every heir to sign, or for a registered release from each.
Duty and penalty later
An unstamped or under-stamped deed cannot be used as evidence until the duty and penalty are paid.
Frequently asked questions
What is a relinquishment deed?
It is a registered document by which a co-owner gives up his or her share in a property in favour of one or more other co-owners. It is used mostly among legal heirs after a death without a will. Section 17(1)(b) of the Registration Act makes registration compulsory because it extinguishes a right in immovable property. We draft it so the share released and the person receiving it are named exactly.
What is the stamp duty on a relinquishment deed in Haryana?
It is ₹15 where ancestral property is released to the renouncer’s brother, sister, son, daughter, father, mother, spouse, grandchild, nephew, niece or co-parcener, under the State’s 2008 clarification on Article 55. For anyone outside that list, duty is charged at the conveyance rate on the market value of the share. The registration fee is separate. We confirm which rule applies before you buy the e-stamp.
Can a share be released to someone who is not a co-owner?
No. A relinquishment deed works only in favour of an existing co-owner. To pass your share to an outsider, such as a friend or a buyer, you need a gift deed or a sale deed. We look at who should end up holding the property and pick the document that gets there in one step.
Can a relinquishment deed be cancelled once registered?
Not by changing your mind. A registered release ends the releasing heir’s right in the property. Setting it aside needs a court case on grounds such as fraud, coercion or misrepresentation, filed through a practising advocate. We explain the effect of each clause in plain words before the registration date.
Is income tax payable on a relinquishment deed?
Only if money changes hands, or the receiver is outside the ‘relative’ list. The Income-tax Act counts relinquishment of an asset as a transfer, so a heir paid for the share has capital gains. A heir receiving a share free from a brother, sister, parent or spouse is not taxed, because gifts from relatives are exempt under Section 92(3) of the Income-tax Act, 2025. We work out both sides before signing.
Can an NRI heir sign a relinquishment deed from abroad?
Yes, through a power of attorney or by signing the deed abroad, with the attestation the Sub-Registrar accepts, followed by registration in India within the time allowed. The details depend on the country and the office, so we confirm them before the papers are sent. If the NRI is paid for the share, our NRI income tax return team handles the tax side.
Do all legal heirs need to sign?
The heir who is releasing signs as the executant, and the heir receiving the share is named in the deed. Whether the receiving heir must also attend varies by office, so we confirm it in advance. We list every heir and every share in the recitals, so the family tree is clear to the Sub-Registrar and to any future buyer.
Is a relinquishment deed different from a partition deed?
Yes. In a release, one co-owner exits and the others keep the whole property. In a partition, the co-owners divide the property so each takes a separate portion in full ownership. Both need registration, and the stamp duty rules differ. If each heir wants a defined part rather than one person holding everything, a partition is the better fit, and we will tell you so.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
The government charges are the stamp duty, ₹15 in Haryana for a release of ancestral property to a listed relative, and the Sub-Registrar’s registration fee.
Ready to begin?
Send us the family tree and the property papers, and we will tell you the stamp duty and send a draft relinquishment deed for your review.