One of the most commonly used legal tool to transfer ownership of property is the gift deed. This is done because it is tax-efficient as compared to other options available. However, one should be aware that the gift deed attracts stamp duty and this varies from state to state and depends on the relationship between the donor and the donee.
The stamp duty on gift deed varies across states, generally ranging from 2% to 7% of the property value. Notably, many states waive off stamp duty on gift deed executed between brothers, stamp duty on gift deed from father to son- i.e. when the gift is given to blood relatives. In this article, we focus on stamp duty to be paid while executing a gift deed, the rates of gift deed stamp duty across states and the tax benefits.
What is a gift deed?
A gift deed is a legal document that allows a person to voluntarily transfer ownership of movable or immovable property to another person without any monetary consideration. The donor should register the gift deed in favour of the donee for the gift to have legal validity.
What property can be gifted?
- The property must be a movable or an immovable property.
- The property must be transferable.
- The property should not be a future property.
- The property should be tangible.
Why is stamp duty on gift deed important?
Stamp duty is a tax that is levied to register the transfer of ownership of property in legal records. Although the gift deed may not have any monetary consideration, it still has to be done legally for validation from the government and for this paying tax and getting proper documentation is critical.
Who pays the stamp duty on gift deed?
In India, the donor, or the person gifting the property, is responsible for paying the stamp duty, registration fees, and other associated charges while executing a gift deed. If the recipient (donee) makes any form of payment, the transaction will be classified as a sale of property under the Transfer of Property Act. In such a case, the donee will be treated as a property buyer. As with a property purchase, the donee will be required to pay all taxes, conveyance charges, and other costs necessary to complete the property transaction.
Gift deed stamp duty and registration charges 2025
| 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
5% for others |
1% |
| Haryana | 5% | 1% |
| Delhi | 4% | 1% |
| Maharashtra | Rs 200 for property exchange among blood relatives
3% for others |
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
3%-6% for others |
1% |
| Manipur | 7% | 1% |
| Sikkim | 1% | 1% |
| Arunachal Pradesh | 6% | 1% |
Just like most deeds related to exchange of property, there is a registration charge that is applicable on gift deed gift deed registration charge is also applicable, to make this instrument legally binding. While some states charge 1% of the property cost as gift deed registration charges, others charge a standard fee.
See also: Property registration online process and charges in India
How to calculate gift deed stamp duty 2025?
You can calculate gift deed stamp duty on the IGR portal of the state in which the property is located. For example, mentioned below is how to calculate gift deed stamp duty in Maharashtra.
- Click on gift deed on https://igrmahhelpline.gov.in/stamp-duty-calculator.php.
- Choose from the gift deed stamp duty options below on whom to gift the property.
- Choose under what the gift falls from municipal corporation, municipal council, cantonment or gram panchayat. On the basis of this, you will know the approximate gift deed stamp duty to be paid.
- For example, if you select municipal corporation and choose Mumbai Municipal Corporation, you will have to pay a gift deed stamp duty of Rs 200 for a property worth Rs 10,00,000.
Remember in case of property gifting, gift deed stamp duty has to be paid by the donor.
How to pay gift deed stamp duty 2025 online?
- Log on to IGRS website of the state in which the property is located and select the option for online payment of stamp duty.
- Select article for which payment is to be done as ‘gift deed on’ immovable property.
How to pay gift deed stamp duty 2025 offline?
You can pay gift deed stamp duty 2025 offline by visiting the sub-registrar office in whose jurisdiction the property falls. One has to make the payment to the SRO and execute the gift deed.
Documents required for gift deed registration
- Original copy of Gift Deed.
- Aadhaar card
- Pan card
- Sale deed
- ID proof
- Other documents as asked by the registrar
- Two witnesses
How to register gift deed?
A gift deed for an immovable property must be registered with the Sub-Registrar’s Office (SRO) as per the Indian Registration Act, 1908. Mentioned are the steps to register gift deed.
- Draft the gift deed: Prepare a legal document that will include details such as donor and donee, description of property and clear mention that no monetary consideration is taken.
- Pay stamp duty: Pay the stamp duty that is applicable according to the state.
- Gift deed execution: The gift deed has to be signed by the donor in the presence of two witnesses.
- Submit documents at SRO: Property documents along with the executed gift deed should be summited at the SRO.
- Property registration: Once the documents are verified, the deed is legally recorded and the property is transferred to the new owner.
Owners gifting their property must be mindful that as soon as the gift deed is registered, they lose ownership over the gifted property. The provisions of the gift deed, just like a sale or a relinquishment deed, come into effect immediately. This is not true in case of a Will, the provisions of which come into force only after the creator of the Will passes away. However, do take note that a gift deed takes effect, only upon the payment of the requisite stamp duty.
Factors influencing gift deed stamp duty in 2025
- Definition of ‘Blood Relatives’: Typically includes immediate family members like parents, siblings, spouses, and children. However, definitions can vary by state, affecting eligibility for concessional rates.
- Property location: Urban properties, especially in municipal areas, may attract higher stamp duty compared to rural properties.
- Property type: Commercial properties might have different stamp duty implications compared to residential ones, even among blood relatives.
- Gender-based concessions: Some states offer lower stamp duty rates if the property is gifted to female relatives, promoting property ownership among women.
Stamp duty on gift deed between spouses/adopted family members
In India, stamp duty on property gift deeds varies by state and the relationship between the donor and the recipient. Many states offer concessions or exemptions for transfers between close relatives, including spouses and adopted family members.
Gifts between spouses
- Maharashtra: A nominal stamp duty of Rs 200 is applicable when gifting residential or agricultural property to close relatives, including spouses.
- Delhi: Stamp duty for gift deeds between relatives, such as spouses, is often lower than for unrelated parties. Specific rates can be obtained from the Delhi government’s official stamp duty and registration website.
- Karnataka: For property transfers to family members, including spouses, a stamp duty of Rs 1,000 plus applicable surcharges and additional duties is charged.
Gifts to adopted family members
Adopted children are generally considered equivalent to biological children under Indian law, granting them similar rights in property matters. Therefore, stamp duty concessions applicable to biological children typically extend to adopted children. However, explicit provisions can vary by state.
- Madhya Pradesh: For property transfers to family members, including children, a reduced stamp duty rate of 2.5% of the property’s market value is applicable.
- Tamil Nadu: Stamp duty for property transfers to family members, such as children, is 7% of the property’s market value.
General considerations
- Definition of ‘Family’: The term ‘family’ can vary across states but commonly includes spouses, parents, children (including adopted), and siblings. It’s crucial to verify each state’s specific definitions and applicable concessions.
- State variations: Stamp duty rates and exemptions differ significantly between states. It’s advisable to consult the respective state’s stamp duty regulations or official websites for precise information.
- Legal assistance: Engaging with a legal professional can provide clarity on applicable stamp duty rates and ensure compliance with state-specific regulations when executing a gift deed.
How circle rates impact gift deed stamp duty 2025?
Circle rates, also known as ready reckoner rates or guideline values, play a crucial role in determining the stamp duty payable on gift deeds. Since stamp duty is calculated based on the value of the gifted property, the circle rate acts as the baseline for valuation, ensuring uniformity and fairness in tax assessment. Here’s how circle rates specifically impact gift deed stamp duty:
1. Basis for stamp duty on gift deeds
The stamp duty on a gift deed is calculated on the higher value between:
- The declared value of the property as stated in the gift deed.
- The circle rate set by the government for that location.
Even if the property is gifted without monetary exchange, the stamp duty is based on its circle rate value.
2. Ensures fair valuation
Circle rates ensure that the property’s value is not understated in the gift deed to reduce stamp duty. If the declared value is less than the circle rate, the higher circle rate value is used to calculate the stamp duty.
3. Variation across locations
Circle rates vary by locality, type of property (residential, commercial, agricultural), and location (urban vs. rural). For instance, properties in metropolitan areas typically have higher circle rates compared to those in suburban or rural regions, leading to higher stamp duty on gift deeds in urban areas.
4. Example calculation
- Property details:
- Declared value in the gift deed: Rs 40 lakh
- Circle rate valuation: Rs 50 lakh
- Stamp duty rate: 3%
- Stamp duty payable: Rs 50 lakh × 3% = Rs1.5 lakh
- In this case, even though the property is being gifted and no payment is involved, the donor must pay stamp duty on Rs 50 lakh, the higher circle rate value.
5. Special cases for blood relatives
- Some states offer concessions or fixed rates for stamp duty on gift deeds between close relatives, such as parents, siblings, or spouses. However, these concessions often still consider circle rates as the baseline for valuation.
6. Implications of outdated circle rates
If circle rates are outdated and do not reflect current market values, they can lead to:
- Overpayment of stamp duty if the circle rate is higher than the actual market value.
- Underpayment if the market value is significantly higher, which might attract scrutiny from authorities.
7. Online circle rate tools
Many states provide online calculators to check circle rates and estimate stamp duty for gift deeds. This helps donors plan the costs involved in registering a gifted property.
What are the gift deeds for special cases?
Mentioned below are gift deeds for special cases.
Presence of many co-owners
In case a property that is to be gifted has many owners, all co-owners should agree to give away the property as gift and sign the deed as donor so that no dispute takes place.
Donee is a minor
If a donor gives a gift to the minor and thus the minor is the donee, then there has to be a legal guardian who will be responsible for managing the property until the donor is 18 years of age. Once the donee becomes an adult, the ownership rights of the property is transferred to the child.
Property gifted by an NRI
The NRIs can become donors and gift property in India, while complying with FEMA. Note that the NRI is also required to pay the stamp duties and taxes, although DTAA rules may apply on the basis of the country of residence of the NRI.
Transfer of agricultural land
In some Indian states, only farmers can be gifted an agricultural land. For instance, in Maharashtra, a non-farmer can’t be gifted an agricultural land as it is against the law.
What are the common misconceptions about gift deeds?
Gift deed process is simple: Some people are of the opinion that the gift deed process is easy and simple to execute. However , this includes lot of paper work, documentation and due diligence.
No need to register: There is a misunderstanding that people don’t have to register their gift.
Exemption from paying tax: Most people are of the opinion that one doesn’t need to pay tax for properties received on gift. While there may exemptions on gifts received from family, other gifts may attract taxes.
Same stamp duty across states: There is no same tax duty across in India and that holds true for gift deed instrument too. It depends on relationship between donor and donee and the state in which they are in.
Gift deed execution: Legal requirements
One cannot simply decide to gift a property and do so without completing the legal procedure.
- The gift deed must be in written format and should have all details about the property, the donor and the donee.
- The property has to be gifted on free will with no monetary exchange.
- Donee should accept the property form the donor during the later’s life time and when he is mentally sound.
- The donor should register the gift deed and pay the required stamp duty and registration charges.
- It should also be attested by at least two eyewitnesses.
- In case the donor doesn’t pay the required stamp duty, the sub-registrar officer has the authority to reject the transfer of property through gift deed.
Income tax on gift deed of immovable property
According to income tax laws, the value of all the gifts received by a person during a year is fully exempt, as long as the total of such gifts does not exceed Rs 50,000 in a year. If the value of all the gifts taken together exceeds Rs 50,000, the aggregate of the gifts received become taxable without any threshold exemption. However, income tax laws also give a favourable treatment to gifts between two close relatives. Consequently, the gift of any asset (movable or immovable) made to certain specified relatives is fully exempt from tax in the hand of the recipient without any upper limit. The list of close relatives includes parents, spouse, siblings, siblings of the spouse, lineal ascendants and descendants of the person and his/her spouse. The list also includes spouse of the abovementioned persons.
If the house property is received as a gift from a relative, the first incidence of tax will arise, when you sell the property. The cost for the purpose of income tax, shall be the taken as the cost that was paid for the property by any of the previous owners. The profits shall be treated as short-term or long-term, depending on whether the aggregate of your holding period as well as that of the previous owner who had actually paid for it, is more than 24 months or not.
If the holding period as computed above is less than 24 months, the profit accrued on the sale of such property, shall be treated as short-term and will be added to your regular income and taxed at the applicable slab rate.
If the holding period is more than 24 months, you will get to choose if you want the benefit of indexation on the cost of the property, as well as the option to claim exemption from payment of 20% long-term capital gains tax, by investing in a residential house or in capital gains bonds of Rural Electrification Corporation (REC) or National Highway Authority of India (NHAI) or pay the LTCG at 12.5% without indexation. This is however valid only on all properties registered before July 23, 2024.
See also: All about property registration laws in India
Can you take back your gifted property?
Under Section 126 of the Transfer of Property Act, revoking the deal will not be possible, unless the donor specifies in the registered contract that he keeps with himself the rights to take back the gift.
At the time of drafting the gift deed, the donor has to clearly mention that even after the gift deed is executed, the donor will still hold the right to revoke the gift deed and take back the gift from the donee, if and when he wishes to do so.
See also: Applicability of TDS on property transfer under Section 194IA
What are the conditions to revoke a gift deed?
The following are the steps for revoking a gift deed:
- It is important to have a clause or understanding between the donor and the recipient under the circumstances the gift deed can be revoked. This can be a failure or any particular incident.
- The condition for revoking the gift deed should be accepted by the recipient while receiving the gift and it should not be based on the will of the donor alone.
- Any gift that was not based on a fraud activity cannot be unilaterally revoked. In such cases the donor and the recipient need to move to the court for revoking it.
See also: Can gift deed be revoked
What are the disadvantages of the gift deed?
● Irrevocable: One cannot rollback a decision that has been taken unless a strong reason is provided and is accepted by the court of law. So unless one is very sure, executing a gift deed should be avoided.
● Donor loses control on property: As mentioned by the law, once the gift deed is executed, a donor loses control on the property that has been gifted. So, one has to be very careful on if they want this and only then should execute the gift deed. Also, a donee may misuse this system and avoid paying taxes that he is supposed to.
See also: All about mutation of property
Stamp duty on gift deed can’t be based on market value: HC
On gift deed, stamp duty can only be levied based on a property’s value and not its market value, the Allahabad High Court has ruled. While giving its order, the HC said that Section 47-A (3) of the Indian Stamp Act cannot be invoked where the property has been transferred by way of gift deed.
Housing.com POV
Any property that is transacted has to be registered in legal records and tax in the form of stamp duty has to be paid. In the case of gifted property, the stamp duty has to be paid by the person who is gifting the property. Any lapse in this will be considered illegal and the property won’t be considered as gifted immovable property. Know that the stamp duty and registration charges on gifted property is similar to that of the normal property registration. Once the property has been gifted- stamped and registered, all rights on the property is transferred to the receiver and donor holds no right on it anymore.
FAQs
What is a Gift Deed?
Gift Deed is a document that transfers property to another owner as a gift. A Gift Deed is valid only when it is without any consideration in return by one family member/ friend to another. It is mandatory to register Gift Deed, according to Section 17 of the Registration Act, 1908.
How to make Gift Deed for property?
As per the Transfer of Property Act, the transfer of a house property under a gift, has to be effected by a registered instrument/document, signed by or on behalf of the person gifting the property and should also be attested by at least two witnesses.
Can you challenge a Gift Deed?
A gift deed can be challenged in court on the basis of its legality, subject to the law of limitation and proof of its illegality. It can be challenged under the following grounds: 1. If the gift deed did not follow legal requirements and was not registered accordingly. 2. If there were certain conditions for the gift that were not fulfilled by the receiver. 3. If either of the parties of the gift deed are incompetent for the contract.
Who can give Gift Deed?
The owner of an immovable property can gift it to a relative or a third person. A gift is considered valid only if it is made voluntarily and without consideration.
How can a lawyer help in gift deeds?
A lawyer is responsible for the documentation and handling of gift deeds. A gift deed is a legal document that can be executed only under the guidance of a lawyer. Thus, the lawyer helps in drafting and registering of the gift deed and also ensures that all the legal requirements are fulfilled in this process.
What is the stamp duty for father to son gift deed?
f the gift deed is executed between some specified close relatives, some states provide concessions in stamp duty. For example, Maharashtra has a cap on stamp duty payable on gift of a residential or agricultural property to one’s spouse, children, grandchildren or wife of a son who has died, at Rs 200, irrespective of the value of the property.
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