There is no additional stamp duty is required if the rights are divided between existing heirs equal only of rights are unequally divided then stamp duty will be applicable
In a preliminary decree is passed in a partition suit. The plaintiff and both defendants (family members) have entered into a compromise term and filled compromise petition in the court allocating properties amongst themself as below. Ex . plantiff gets Property A. worth 50L defedents 1 gets Property B worth 75L defendent 2 gets Property C worth 40L What are applicable chargers/ fee/ stamp duty/ or another payment that needs to be done at the time for final decree and get the decree of NJ stamp paper. How is charges calculated. The suit is in Telangana.
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There is no additional stamp duty is required if the rights are divided between existing heirs equal only of rights are unequally divided then stamp duty will be applicable
When a partition suit ends in a compromise or final decree, and specific properties are allotted to each co-sharer, the final decree of partition itself becomes an “instrument of partition” under the Indian Stamp Act, 1899, as amended by Telangana Stamp Act (Schedule I, Article 47-A).
So the final decree is chargeable with stamp duty, unless all parties had already executed a registered partition deed earlier.
Stamp Duty: 3% on the market value of the separated share(s)
Transfer Duty (Local Body): 1.5%
Registration Fee: 1%
Total approx: ~5.5% on the market value of property allotted
Court Fees: ₹500-₹1,000 on compromise petition
Stamp Duty & Registration (Telangana):
Stamp Duty: 0.50% of property value (max ₹1,00,000 per property)
Registration: ₹2,000 per property
Your total cost: ~₹88,500 for all three properties worth ₹1.65 crore
Process:
Court issues final decree on compromise
Execute partition deeds with stamp duty at Sub-Registrar
Each party gets registered document
No NJ stamp paper needed - court issues decree on regular paper; registration happens on non-judicial stamp paper with fees above
Dear Client, in Telangana, once a compromise is recorded in a partition suit and properties are allotted to each party, the final decree must be drawn on non-judicial stamp paper and proper stamp duty and registration charges must be paid. Telangana generally treats a compromise decree that effects a partition as a partition deed, so stamp duty applies on the separate share each party receives, calculated on the market value of the property as per the latest government valuation. Registration is also required, and parties must pay registration fees accordingly. In short, at final decree stage, you must pay stamp duty + registration fees as per the Stamp Act and Registration rules based on the market value of allotted properties. It is advisable to get exact valuation and duty assessed from the Sub-Registrar Office (SRO) before final decree execution. I hope this answer helps. For any more queries, do not hesitate to contact us.
- You can consult a local lawyer of Telangana for getting the said information , as this is not fixed for whole India.
In a partition suit where a preliminary decree has already been passed and the parties later enter into a compromise allocating specific properties among themselves, the question of stamp duty, registration charges, and any additional court fee depends on how the compromise is implemented and how the final decree is to be acted upon under Telangana law.
Once the compromise terms are recorded and accepted by the court, the final decree does not itself transfer ownership unless it is followed by proper registration of the partition or relinquishment instruments, because a civil court decree relating to immovable property requires registration if it effects a transfer and is intended to be acted upon for mutation or title purposes.
In Telangana, a family partition or allotment of immovable property among co-sharers attracts concessional stamp duty. At present, the rate for a registered partition among family members is 0.50% of the market value of the property allotted, subject to a maximum of ₹1,00,000 per instrument, plus a registration fee which is generally ₹2,000 (as per the Telangana Registration Department schedule). If the parties are not all covered by the definition of “family members” under the Stamp Act, then higher rates such as 2.50% or more may apply.
In your example, the plaintiff is allotted Property A valued at ₹50 lakhs, defendant 1 receives Property B valued at ₹75 lakhs, and defendant 2 receives Property C valued at ₹40 lakhs. If all three are legally recognised family members for stamp duty purposes, the approximate duty payable for each registered deed will be 0.50% of the respective value, which means about ₹25,000 on the ₹50 lakh property, ₹37,500 on the ₹75 lakh property (subject to the ₹1 lakh cap), and ₹20,000 on the ₹40 lakh property, plus the flat ₹2,000 registration fee per document. These figures may vary based on the latest circle rate notified by the Telangana Registration Office for the locality in which the properties fall.
Whether a fresh court fee is payable depends on whether the compromise alters the original valuation or relief. In most partition suits, if the plaintiffs and defendants were shown as being in joint possession and the initial fixed court fee was already paid, no fresh ad-valorem court fee is required merely because the parties entered into compromise terms. If, however, the plaint originally claimed separate and exclusive possession, or if new monetary relief is added by compromise, the court may ask for differential fee under the Telangana Court Fees and Suits Valuation Act. This is checked administratively by the court before the final decree is drawn.
The decree itself, when printed on non-judicial stamp paper, does not replace the need for a registered partition or release deed if the decree is intended to be used for mutation, as Sub-Registrars in Telangana generally insist on either (a) a registered decree, or (b) a separate registered instrument executed in compliance with the decree. The safest practice is to obtain the certified final decree and then execute and register the appropriate partition/relinquishment deeds as per the compromise.
The next procedural steps are as follows: obtain certified copies of the compromise order and final decree; confirm with the Sub-Registrar whether the decree alone is being accepted for mutation in your district or whether a separate deed is required; obtain the latest market value certificates for each property; compute stamp duty at the applicable concessional rate; prepare the partition/release deeds accordingly; and proceed with registration and payment of duty. Once registered, the properties can be mutated in the names of the respective parties.