What Is Mutation Of Property And Why Is It Important?
- A
- By Admin
- Jan 25, 2019
- 0 Comments
- 5 Likes
- 5674 Views
After you have finished the real estate transaction and registered the property under your name, there is still one step left i.e. the mutation of property. This step is required for paying the property tax.
What Should I Understand By ‘Mutation Of Property’?
When a property is sold, the change of title ownership from the existing owner to the new owner is required. This process is called Mutation. If a person performs mutation of his/her property, the new owner gets to record the property on his/her own name and the government and the land revenue department is then able to charge property tax from the lawful owner. Hence, mutation of property is required for government records if you are buying any property.
After getting the mutation of your property done, you can pay the property tax seamlessly, and avoid interest or penalties that might be incurred at a later stage. Mutation of property in Hindi is known as Daakhil-Kharij.
If you have your doubts about the entire process or the importance of mutation of property, here is a simple guide that you can refer to:
Importance Of Mutation Of Property
The reason why the municipal body of a city keeps the property ownership transfer records is to fix the property tax payment liabilities. Hence, the mutation of property helps the authorities to fix the taxpayers' responsibility.
The process benefits the house owner as well. After the mutation of your property, you are not only able to pay the property tax, but also help you in selling your property in the future. It will reduce the chances of you losing a prospective buyer as he/she will most likely ask for the mutation papers.
Different Cases
The overall procedure and documents required in the process of mutation of property is different from state to state. But the circumstances under which you would have to file for mutation of property are listed down below:
1. Buying Any Property: The documents that you will be required to submit are the copy of sale deed, an affidavit on a stamp paper, an application for mutation of property with the court fee stamp, an indemnity bond on a stamp paper, the current property tax clearance papers, etc.
2. On Death Of The Owner With You As The Heir: The process of mutation of property in such a case will consist of the submission of documents like a copy of the will, the death certificate, an indemnity bond on a stamp paper, the latest property tax clearance papers, an affidavit on a stamp paper (attested by the notary), etc.
3. If The Property Is Bought By Your Power Of Attorney: In this case, the mutation of property will require documents, such as the copy of power of attorney papers, an indemnity bond on a stamp paper, an affidavit on the stamp paper, the application with a court fee stamp, the latest property tax clearance papers, etc.
The amount of stamp paper is of a certain value in all of the above cases.
Importance Things To Know
Here are certain things that you should know in regard to the mutation in property:
- If you do not get the mutation of your property done, it will attract a minimal penalty.
- You can also get the mutation of your property done at any time you find it feasible.
- The process is not legally binding but it is important because it is a proof of ownership and may play the role of a tax record.
- The property mutation fees are different for different states.
- The mutation papers need to be updated from time to time and hence, the process is not at all a one-time thing. The regular updating of records ensures that the records of property stand clean.
- There are two types of mutations, the first is for the agricultural land and the second is for non-agricultural land, for instance, independent houses, godowns, residential plots, flats, etc.
- If you do not get the mutation of property done, you may also not be able to pay for the water and electricity connections.
When you take all of these aspects into account, it becomes clear why mutation of property is a useful process, and is something you must know about to avoid any future hassles.
You May Also Like
SEARCH
RECENT POSTS
- Understanding Sale Deed in India
- How to apply for a NEW PAN card in India
- Mindspace REIT listing INDIA after Embassy REIT Success
- GOVT considering 100% FDI in completed housing projects
- Karnataka may cut property guidance value value by 5-10%
- Projects under RERA to get six month extension
- TNRERA Extends Project completion date by Five months
- RBI Extends Moratorium On Loans For Another 3 Months Till August
- How To Apply Encumbrance Certificate In Tamil Nadu
- Know all about KHATHA