Indian stamp act

In the case, A, B and C are brothers.

The three brothers want to exchange their immovable property among themselves.

Yes it is Compulsory under India stamp act & registration of property act.

can they sign relinquishment deed in favour of each other and hencer the stamp duty will be avoided.?

3(D) RELINQUISHMENT

It means extinction of rights or interest in property. It may not amount to transfer of property if it is in favour of a person having interest in property. It amounts to transfer if it is in favour of a person who has no interest in the property.


Section 17 of the Registration Act, 1908 lays down different categories of documents for which registration is compulsory. The documents relating to the following transactions of immovable properties are required to be compulsorily registered:

Instruments of gift of immovable property. 
lease of immovable property from year to year or for any term exceeding one year or reserving a yearly rent. 
Instruments which create or extinguish any right or title to or in an immovable property of a value of more than one hundred rupees. 

Under Section 2(6) of the Registration Act, 1908 the term "immovable property" includes: "land, buildings, hereditary allowances, rights to ways, lights, ferries, fisheries or any other benefit to arise out of land, and things attached to the earth, or permanently fastened to any thing which is attached to the earth, but not standing timber, growing crops nor grass."

Hence registration of relinquishment deed is mandatory.

but, stamping will be nominal..?