While transfer of property in India, the buyer must pay stamp duty and registration fee to register the change of ownership in official records. Property gifting is no exception to this rule. Depending on the state where the property is located, those gifting an immovable property have to pay stamp duty and registration charges in the range of 2%-7% to get the gift deed legally registered.
What is a gift deed?
A gift deed is a legal document that aids in transfer of property ownership from donor (person who is gifting) to the donee (the person who is the receiver). This is under Section 122 of the Transfer of Property Act, 1882. There is no monetary exchange when a donee receives gift from donor.
What are the features of a gift deed?
- No consideration: As opposed to a sale deed, a gift deed has no monetary transaction.
- Consent of donor and donee: The gift has to be given with consent of the donor and the donee has to accept the gift within the donor’s lifetime, else the gift will become null and void.
- Immoveable property gift: A property can be gifted only if it exists at the time of gifting.
- Difficult to revoke deed: Once the gift is handed over and accepted, unless there is a strong reason, it can’t be revoked. However, under certain circumstances mentioned in Section 126 of the Property Transfer Act such as fraud or coercion, the donor can revoke the gift deed.
Rebates on gift deed in blood relation
While most states charge a specific amount as stamp duty on gift deed registration, some states offer a partial or total rebate on this duty if the gift is being exchanged among blood relatives. The government in order to help farmers and the middle-class have either waived off or reduced the stamp duty in gift deeds to blood relatives. This guide outlines details regarding stamp duty on gift deed in blood relations.
Who are blood relatives for this purpose?
For tax-saving purposes, India’s Income Tax Act defines the relatives who fall in the ‘blood relatives’ category. These include:
a) Spouse
b) Brother or sister
c) Brother or sister of the spouse
d) Brother or sister of either of the parents
e) Any lineal ascendant or descendant
f) Any lineal ascendant or descendant of the spouse
g) Spouse of the persons referred to in (b) to (f)
Know more about Gift deed format
Gift deeds versus wills
In case of a gift deed, the ownership is transferred immediately and is irrevocable. On the other hand, a will comes in to effect only after the death of the testator and it can be changed as many times before the death of the person who has written the will.
What is stamp duty and registration charges of a property?
According to the Indian Registration Act, if an immovable property’s value exceeds Rs 100 and its ownership is transferred it has to be legally registered in the government book of records. When you transfer property ownership to a blood relative, invoking a gift deed is the first step. A person has to pay stamp duty and registration charges on this gift deed to register their property in legal records of the government. The gift deed varies from state to state depending on their rules and regulations. These charges differ when the property is gifted to blood relatives and non-blood relatives. While there is a rebate offered by most state government on stamp duty on gift deed when invoked for blood relatives, the stamp duty that has to be paid for non-blood relatives is based on the circle rate prevalent in that area. Note that when a gift deed is invoked, the stamp duty and registration charges have to be paid by the donor and not the donee.
Stamp duty on gift deed for blood relatives and non-blood relatives: Points to know
Location: Stamp duty differs from state to state.
Payment: The stamp duty has to be paid completely at the time of registration.
Property type: A property that is new will attract a high stamp duty on gift deed in blood relatives or non-blood relatives as compared to older buildings.
Owner’s age: The stamp duty on gift deeds in blood relatives and non-blood relatives for senior citizens is lower as compared to younger people.
Gender: The stamp duty on gift deeds in blood relatives and non-blood relatives for women is lower as compared to men in some states.
States that offer rebate on stamp duty on gift deed in blood relatives
| State where gift deed is registered | Stamp duty as percentage of the property value | Registration fee as percentage of property value |
| Uttar Pradesh | Rs 5,000 for property exchange among blood relatives + Rs 1, 000 processing fee | 1% |
| Haryana | 5% | 1% |
| Delhi | 4% | 1% |
| Maharashtra | Rs 200 for property exchange among blood relatives | 1% |
| Gujarat | 3.5% | 1% |
| Rajasthan | 6% | 1% |
| Madhya Pradesh | 5% | 1% |
| Andhra Pradesh | 2% | 0.5% |
| Himachal Pradesh | 6% | 1% |
| Tamil Nadu | 7% | 1% |
| Karnataka | 5% | 1% |
| Punjab | 6% | 1% |
| Bihar | 5.7% (for women) and 6% (for men) | 1% |
| Jharkhand | 3% | 1% |
| Kerala | 2% | 1% |
| Madhya Pradesh | 2.5% | 1% |
| Chhattisgarh | 5% | 1% |
| Uttarakhand | 5% | 1% |
| Himachal Pradesh | 5-6% | 1% |
| Odisha | 3% | 1% |
| Telangana | 0.5 % (subject to a minimum of Rs 1,000 and maximum of Rs 10,000 | 1% |
| J&K | 3-7% | 1% |
| Assam | 5.6% | 1% |
| Chandigarh | 5% | 1% |
| Goa | Rs 5,000 for property exchange among blood relatives | 1% |
| Manipur | 7% | 1% |
| Sikkim | 1% | 1% |
| Arunachal Pradesh | 6% | 1% |
Uttar Pradesh, Maharashtra, Madhya Pradesh Rajasthan, Goa and Punjab offer a complete or partial rebate on stamp duty payment on gift deeds.
Maharashtra
In Maharashtra, only a token amount of Rs 200 has to be paid as the stamp duty, if a residential or agricultural property is being gifted to the spouse, children, grandchildren or the wife of a son after his demise. This is irrespective of the value of the property. This rule has been applied in the state since 2015.
Madhya Pradesh
In Madhya Pradesh, gift deeds attract 5% stamp duty. However, when property is gifted form one family member to another, the stamp duty is 400 basis points lower: the doner will pay only 1% stamp duty.
Uttar Pradesh
In Uttar Pradesh a stamp duty of Rs 5,000 has to be paid for property exchange among blood relatives. An additional Rs 1, 000 has to be paid as processing fee.
Rajasthan
The applicable stamp duty on gift deed is 6% in Rajasthan. However, it is not applicable if a husband is gifting an immovable property to his wife. The same is true for gifting an immovable property to daughter in law and daughter, father or mother above the age of 60 and above the age of 70 years. However, gift in favour of brother, sister or husband, father or mother upto 60 years attracts a 2.5% of the property value as stamp duty.
Punjab
After a Punjab government decision in 2014, there is no applicability of stamp duty on the immovable property being transferred among blood relatives. Otherwise, gift deed registration in the state requires payment of 6% stamp duty.
“The decision is in line with the government’s desire to encourage people to go for legal registration of property rather than adopting ultra vires measures, which only increased intra-family disputes,” the then Punjab state revenue minister, Bikram Singh Majithia had told the media after the announcement.
Haryana
Since 2014, Haryana has offered a complete waiver on payment of stamp duty on gift deeds where a property is being transferred from one blood relative to another.
Uttarakhand
This hill state also offer rebate on property gifting among family members. Unlike a normal gift instrument that attracts 5% stamp duty, stamp duty on gifts among family members is just 1% in Uttarakhand.
What is the registration charges for transfer of gift property among blood relatives?
Be informed that unlike sale deed, no relaxation is offered on registration of gift deed based on the gender of either the donnee or the doner. The registration fees on gift deed remains the same across genders, whether among blood relatives or otherwise.
How to gift a property to blood relatives?
Mentioned are the steps to follow while gifting a property to your blood relative.
- Eligibility: Find out if both donor and donee can get into the contract of gift deed.
- Draft the contract: Mention all details such as name of donor, name of done, area of the property etc.
- Register the deed at the SRO with the donor paying the stamp duty and the registration fees. This has to be done in front of two eye-witnesses.
- The donee has to accept the gift within the lifetime or the donor, else it will become invalid.
Online payment of gift deed stamp duty 2025
- Log on to IGRS portal of the state in which the property is located and choose option for online payment of stamp duty.
- To pay stamp duty on gift deed, select article for which payment is to be done as ‘gift deed on’ immovable property.
Offline payment of gift deed stamp duty 2025
To pay gift deed stamp duty 2025 offline, you have to visit the sub-registrar office (SRO) in whose jurisdiction the property falls. Once the payment is made to the SRO, the gift deed will be executed.
What are the challenges one can face while getting a gift deed registered?
- The property that the donor is gifting may be under litigation.
- The donor may have filled incorrect or incomplete information while getting the gift deed registered and gifting the property.
- The state specific regulations with respect to the gifting of the property may not have been followed.
What are the tax implications of gifting property in blood relations?
Gifting property attracts tax under the Income Tax Act, 1961,
Income Tax on Gifts
Gifts given to blood relations in the form of marriage gifts, inheritance are free of tax.
Capital Gains Tax
If the property is held for more than two years and was registered before July 23, 2024, a capital gains tax of 20% with indexation benefits or a capital gains tax of 12.5% without indexation benefits will be an option that the done has to choose from. If the property is registered after July 23, 2024, then he has only one option- 12.5% without indexation benefits.
Gifting property to spouse
Gifting property to spouse does not attract any tax. But, any income generated from that property in the form of rent will be taxed.
Property tax on gifted property
After the property is gifted, the donee becomes the owner of the property. Property tax has to be paid by the owner of the property and once the donee becomes the owner he is responsible for paying the annual property tax for the property. Note if the property tax is not paid on time, it will attract a penalty of around 2% of the tax for the defaulted period.
Housing.com Viewpoint
Gifting is a legal way to transfer property among family members. This also attracts stamp duty and registration charges like other properties. The difference is that in a gift deed, stamp duty has to be paid by the donor and not the donee. Do note that gift deeds come into effect immediately after registration. So, another method to give a property to a relative could be a Will. Unlike a gift deed, a Will comes into effect after the death of the property owner.
FAQs
Is stamp duty payable on the transfer of property between family members?
It depends on the state where the gift deed is being registered. Only a few states in India offer a complete rebate on stamp duty payable on registration of the gift deed if the parties involved are blood relatives.
Is stamp duty applicable on gift deed?
Yes, stamp duty is applicable on gift deed.
Who pays the stamp duty in case of gift deed?
The doner pays the stamp duty in case of gift deed.
Which law governs gifts by one person to another?
The Transfer of Property Act, 1882, governs gifts by one person to another.
What are the formalities for registering a gift deed?
The donor must pay the requisite stamp paper to pay the gift deed. The deed should also be attested by at least two witnesses. More importantly, the donee must accept the gift.
When does gift deed come into effect?
Gift deed comes into effect immediately after it is registered.
