Thinking of gifting property to your loved ones? To give a child a little something extra, or to thank your parent for their time and love, giving a property to loved ones through a Gift Deed is the most endearing way to show love and care.
But, before you get started embodying that love, it is essential to know the stamp duty on a gift deed, a critical step that legitimizes your intention to gift the property and renders your act legally valid and binding.
In India, a Gift Deed is not only a procedural necessity. It is a legal document recognized under the Transfer of Property Act, 1882. Furthermore, the correct stamp duty on the gift will be paid, so your rights of ownership remain protected.
A Gift Deed is a legal document that enables the voluntary transfer of property ownership without receiving any compensation in return. It allows you to gift your property to someone else - typically a family member - such as your spouse, parents, or children.
Unlike a Sale Deed, where money changes hands, a Gift Deed is a no-consideration transfer. A Gift Deed is also different from a Will, which only takes effect when the person writing the Will passes away, whereas a Gift Deed is valid immediately upon execution and registration.
To effectuate the transfer, you must register the Gift Deed at the sub-registrar's office and pay the requisite gift deed registration fees and stamp duty on the gift deed.
Think of stamp duty as a fee charged by the government to confirm the transfer of your ownership in the eyes of the law. Without paying stamp duty, your deed of gift stamp duty document carries no legal authority at all.
Stamp duty also:
What is interesting is that gifting property and stamp duty rules vary by state and to whom you give the property.
Here’s a quick look at how the gift of property stamp duty differs across major Indian states. Notice how blood relation gifts often enjoy big concessions!
| State | Gift to Family Members | Gift to Non-Family Members | Registration Charges |
|---|---|---|---|
| Tamil Nadu | 1% of market value | 7% of market value | 1% |
| Maharashtra | ₹200 (fixed) | 3% of market value | 1% |
| Delhi | Nil (for blood relations) | 3% | 1% |
| Karnataka | ₹1,000 (family) | 5% | 1% |
Pro Tip: In some states, female recipients enjoy lower property gift deed charges as part of women's empowerment schemes.
Note: - The percentage might vary due to different reasons, so please check the official website of the respective state.
Good news, you may not always be subject to the full stamp duty on a gift deed in blood relation cases!
The extent of the exemption typically depends on a state permitting partial or complete exemption when transferring the property to a parent, spouse, child, or sibling. For example:
This will not only allow you to utilize reasonable transfer rates, but it will also make this gifting process simpler.
Here’s what the gift deed registration process looks like:
Tip: Don’t delay registration — incomplete or unregistered deeds are invalid in court.
Tax is another crucial factor in understanding gift deed stamp duty.
Per Section 56 (2) of the Income Tax Act, if the gifted property is to a relative, there is no tax due. If gifted as a “non-relative” and the value of the property is greater than ₹50,000, then it is taxable in the classification of “Income from Other Sources.”
If the receiver later sells the property, capital gains tax will apply, calculated from the original owner’s purchase cost.
In Conclusion, A Gift Deed is not just a legal document; it is a token of trust and love. That said, for your gift deed to be legally enforceable, you must pay the requisite stamp duty on the gift deed and register it correctly.
If you are aware of all the gift deed registration charges or any exemptions, completing the property transfer will be easier, cheaper, and less argumentative.
Looking to gift your property, our real estate professionals at Omshakthy Homes are here to help, from valuation to registration!
Yes, stamp duty on gift deeds is mandatory in India to legally validate the property transfer under the Transfer of Property Act, 1882. Without paying stamp duty on gift deeds, the document lacks legal authority and cannot be enforced in court. Rates vary by state—for instance, Tamil Nadu charges 1% for family members and 7% for others on market value—ensuring government confirmation of ownership shifts. Always check state portals for exact stamp duty on gift deeds to avoid invalidation.
Yes, registration of gift deeds is compulsory for immovable property transfers in India per Section 123 of the Transfer of Property Act, 1882, and Registration Act, 1908. Is registration of gift deeds compulsory? Absolutely, as unregistered deeds are invalid and unenforceable legally. The process involves sub-registrar office submission, stamp duty payment, and witness signatures, typically within months of execution to secure immediate ownership rights for recipients like family members.
The donor (giver) is responsible for paying the stamp duty on gift deeds in India, along with registration fees, to maintain the no-consideration nature of the transfer. If the donee pays, it may convert to a sale deed under law. Stamp duty on gift deeds varies by state and relation—e.g., nominal in Maharashtra for family (₹200)—ensuring compliance. Consult the local sub-registrar for precise obligations during drafting.
Stamp duty on a gift deed is calculated as a percentage of the higher of declared value or government circle rate/market value, varying by state (2-7%). Use a gift deed stamp duty calculator on state portals like Tamil Nadu's for accuracy—e.g., 1% for families in TN on market value. Factors include relation (concessions for blood relatives) and location; add 1% registration. Verify via official sites for precise computations.
No, stamp duty on gift deeds is typically lower than sale deed stamp duty, especially for family transfers. Sale deeds attract higher rates (e.g., 5-7% market value) due to consideration, while gift deeds offer concessions like Tamil Nadu's 1% for relatives vs. 7% non-family. Stamp duty on gift deeds ensures validity without monetary exchange, but both require registration. Check state rules for differences.
Gift deed cost in India includes stamp duty (1-7% of market/circle rate, lower for family) plus 1% registration fees, varying by state—e.g., Tamil Nadu: 1% family stamp +1% registration; Maharashtra: ₹200 fixed for relatives. Total might range ₹10,000-₹5 lakhs+ for ₹50 lakh property. Add legal drafting (₹5,000-20,000). Use state calculators for exact gift deed costs in India; family exemptions reduce expenses significantly.
Stamp duty for gifting property to spouse, siblings, parents, or children enjoys concessions as blood relatives across states. Tamil Nadu: 1% market value; Maharashtra: ₹200 fixed; Delhi: nil/lower; Karnataka: ₹1,000. Non-relatives pay full (3-7%). These rates validate loving transfers legally—always confirmed via state revenue sites for updates on stamp duty for gifting property to family.
Yes, stamp duty is mandatory even for gifting property to family members, though at reduced rates (e.g., 1% in Tamil Nadu vs. 7% others). Gifting property without it renders the deed invalid under law. Exemptions apply for close relatives like spouses/children in states like Delhi (nil for blood relations), ensuring protected transfers. Register promptly at sub-registrar for enforceability.
Stamp duty on gift deeds in blood relation is concessional: Tamil Nadu 1%, Maharashtra ₹200, Delhi nil, Karnataka ₹1,000—far below non-relative rates (3-7%). Blood relatives (spouse, parents, siblings, children) qualify for these to simplify gifting. Calculated on market value; verify state notifications as rates evolve for stamp duty on gift deeds in blood relation transfers.
Yes, all Indian states have different stamp duty rates for gift deeds and registration charges (usually 1%). Tamil Nadu: 1% family/7% others +1%; Maharashtra: ₹200 family/3% +1%; Delhi: nil relatives/3% +1%. These variations promote family transfers—check official sites for gift deed stamp duty and registration charges in your state to budget accurately.
Yes, stamp duty on gift deeds can be reduced or exempted for blood relatives in many states—e.g., Delhi nil, Maharashtra ₹200 fixed. Some offer refunds if applied timely. Women may get further concessions. Full payment ensures validity; consult sub-registrar for exemptions on stamp duty on gift deeds based on relation and state policies.
If stamp duty on gift deeds is not paid, the document is legally invalid, unenforceable in court, and the property transfer fails. Penalties, fines, or deficit recovery apply later. Proper stamp duty on gift deed payment at registration protects ownership—unpaid deeds risk disputes. Always pay upfront for smooth gifting.
Mandatory documents for gift deed registration include: donor/donee ID proofs (Aadhaar, PAN), property title deeds, encumbrance certificate, valuation report, passport photos, and no-objection consents if joint owners. Affidavit of free will and witnesses required. Submit at sub-registrar for gift deed registration to complete transfer legally in India.
Stamp duty gift deed payment and registration typically take 1-2 weeks: draft deed (1-2 days), pay stamp duty online/at office (instant), book sub-registrar slot (1-7 days), execute with witnesses (same day). Delays occur from document verification. Register promptly post-execution for validity; track via state portals.
Pay stamp duty for gift deeds online via state portals like Tamil Nadu's IGRS (igrs.tn.gov.in): compute value, select gift deed, upload details, pay via net banking/UPI. Generate e-stamp, print for registration. Gift deed online tools simplify; post-payment, proceed to sub-registrar. Confirm receipt to avoid issues.
No, GST is not applicable on gift deeds in India as it's a no-consideration property transfer, not a supply of service/goods. Stamp duty/registration fees apply instead. Gift deeds in India registrations attract only state taxes—verify with tax advisor for exemptions, especially family gifts under Income Tax Act.
Yes, NRIs as donors must pay stamp duty on gift deeds in India, complying with FEMA via power of attorney if abroad. Same state rates apply (e.g., concessions for families). Execute at Indian embassy/sub-registrar; DTAA may ease taxes. NRIs ensure clear titles for valid transfers.
