While transferring ownership of property in India, the buyer must pay stamp duty and registration fee to register the new owner’s name in official records. Payment of stamp duty holds no exception even when the property is gifted. However, here the donor instead of the donee is responsible to pay the stamp duty.
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 deeds in blood relations.
What is a gift deed?
A gift deed is a legal document that is executed during transfer of property ownership from the donor (person who is gifting) to the donee (the person who is the receiver). This is done under Section 122 of the Transfer of Property Act, 1882. This gift deed is executed with the donor paying the required stamp duty and registration charges. Note that there is no monetary exchange when a donee receives a gift from the donor.
- 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. In the absence of this, 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 that ranges between 2-7% of property value 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 deeds in blood relations.
Who belongs to the blood relatives category in gift deeds?
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
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. These charges differ when the property is gifted to blood relatives and non-blood relatives.
While there is a rebate offered by most state governments on stamp duty on gift deeds 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.
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 as compared to older buildings.
Owner’s age: The stamp duty on gift deeds in blood relatives who are senior citizens is lower as compared to younger people.
Gender: The stamp duty on gift deeds in blood relatives for women is lower as compared to men in some states.
State-wise stamp duty levied on gift deed for blood relatives
Mentioned are the state-wise stamp duty levied on gift deed for blood relatives.
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 from one family member to another, the stamp duty is 400 basis points lower: the donor 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, there is no stamp duty on gift deed
- if a husband gifts an immovable property to his wife, a property is
- an immovable property is gifted to daughter in law or daughter
- father or mother above the age of 60 and above the age of 70 years.
However, gifts in favour of brother, sister or husband, father or mother upto 60 years attract a 2.5% of the property value as stamp duty.
Punjab
Punjab doesn’t levy any stamp duty on gift deeds executed among blood relatives. Otherwise, gift deed registration in the state requires payment of 6% stamp duty.
Haryana
A complete waiver has been offered by Haryana on payment of stamp duty on gift deeds for blood relatives.
Uttarakhand
This hill state also offer rebates 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 are the registration charges for transfer of gift property among blood relatives?
Be informed that unlike sale deeds, no relaxation is offered on registration of gift deeds based on the gender of either the donee or the doner. The registration fees on gift deeds remains the same across genders, whether among blood relatives or otherwise.
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.
Considerations of gifting property in blood relation
- Motive of gifting: Know the motivations for gifting the property and have a conversation with the donee so that he understands why the property is being gifted. If you have more than one child and want to gift the property equally, ensure that proper communication exists so that all are on the same page.
- Valuation of the property being gifted: Get a professional valuation of the property that is going to be gifted to get the fair market value is documented.
- Financial implications: Before gifting your property, calculate the financial implications it will have on you in the future.
- Legal assistance: Get legal advice on how to draft the gift deed and comply with all legal formalities.
- Tax planning: It is a good idea to discuss tax implications with a tax advisor to reduce the tax liabilities for both donor and donee.
For instance if a parent decides to gift his property to his child, he has to first talk to him, get the house valued, draft the gift deed with a lawyer’s help and register it. He should also get in touch with a CA to know potential tax implications.
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.
- Deed registration: 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.
- Accepting gift: The donee has to accept the gift within the lifetime or the donor, else it will become invalid.
How can you pay the gift deed stamp duty for blood relatives online?
- Log on to the IGRS portal of the state in which the property is located and choose the option for online payment of stamp duty.
- To pay stamp duty on gift deeds, select an article for which payment is to be done as ‘gift deed on’ immovable property.
- Select gift deed stamp duty for blood relatives option and proceed.
How can you pay the gift deed stamp duty for blood relatives offline?
To pay gift deed stamp duty 2025 offline, you have to visit the sub-registrar office (SRO) under whose jurisdiction the property falls. Fill the application for gift deed on immovable properties for blood relatives and attach the supporting documents. Once the payment is made to the SRO, the gift deed will be executed.
What are the challenges faced while getting a gift deed registered?
- The property that the donor is gifting may be under litigation and registration may be difficult.
- 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 donee 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 a 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.