1. There is no income involved, and so there is no income tax.
2. The person paying up may have to produce the source of the money paid.
3. It is good to register the family partiution at the Sub Registrar Office concerned; if you prefer to partition the property through a court of law, the expenses would be higher - you have to pay the Court fees and the legal expenses and then register it before the Sub Registrar Office to have a Registered Title Deed; the Court Order need not be Registered before a Sub Registrar Office, but a subsequent purchaser may insist on a registered deed, and then you have to pay the registration charges of that time; moreover, the legal procedures are lengthy Instead, register the Partition Deed once the membersarrive at an amicable partition.
4. If any payment is made then do not go for a Deed of Gift. It is a Family Settlement, and properly can be named it as Family partition. Since the terms are almost settled between the members, it can be registered as a family partition, and then the person obtaineng the property would have a proper document as title deed.