Stamp Duty and Registration Charges on Gift Deeds: Rates, Exemptions & Key Rules

Stamp Duty and Registration Charges on Gift Deeds: Rates, Exemptions & Key Rules.  
Gift deeds are an important legal tool to transfer property ownership without monetary consideration. Whether you’re transferring a flat to your children, gifting land to your spouse, or handing over movable assets to a sibling, it's important to know the Stamp Duty and Registration Charges on Gift Deeds in India. These charges vary across states and are influenced by the relationship between the donor and the donee. In this article, we explain the charges, exemptions, applicable rules.
What is Stamp Duty on a Gift Deed?
Stamp duty is a form of tax imposed by the government on legal documents. In the case of a gift deed, it is levied on the transfer of movable or immovable property without consideration. The stamp duty makes the gift deed legally valid. The amount depends on the market value of the property and the relationship between the donor and the donee. For close blood relatives, many states offer a concession or even full exemption. The gift deed is only legally valid if the stamp duty has been fully paid. If not paid properly, the deed can be considered invalid, and penalties may apply.
Properties That Can Be Transferred Through Gift Deed
A gift deed can be used to transfer different types of assets. These include:
Immovable Property
Land, buildings, and apartments are common forms of immovable assets transferred via gift deed. These are the most common types of gift transfers, especially among family members.
Movable Property
Includes vehicles, jewellery, shares, bonds, and other tangible items. Though less common, such gifts are legally allowed.
Existing Property Only
Only property that exists and is owned by the donor can be gifted. You cannot gift future or contingent properties.
Rules on Gift Deeds in India
The provisions related to gift deeds are governed by the Transfer of Property Act, 1882, and are uniform across India. The following are the key rules:

The transfer should be made out of free will, without coercion or undue influence.

The donor must be the rightful owner of the property at the time of the gift.

The gift must be made out of love and affection, not for money.

The donee must accept the gift during the donor's lifetime. Without acceptance, the gift is invalid.

For immovable property, registration is mandatory under the Indian Registration Act, 1908.

The correct stamp duty applicable to the state and relation must be paid.

At least two witnesses are required to sign the gift deed.

The deed should clearly describe how possession is transferred.

Though optional, a revocation clause can be added to avoid disputes.

Stamp Duty & Registration Charges on Gift Deeds Across Indian States
The Stamp Duty and Registration Charges on Gift Deeds are different in each state. The rates may also differ based on the relationship between donor and donee. Here’s a look at the applicable charges:

State

Stamp Duty

Registration Charges

Kerala

Tamil Nadu

Gujarat

3.5%

Uttar Pradesh

Delhi

Rajasthan

Telangana

0.5%

Maharashtra

West Bengal

Uttarakhand

Punjab

Bihar

Odisha

Jharkhand

Assam

5.6%

Himachal Pradesh

Madhya Pradesh

Chhattisgarh

Chandigarh

Sikkim

Manipur

Arunachal Pradesh

Stamp Duty for Gift Deed in Blood Relations
Most states in India offer concessional stamp duty rates when the gift deed is between blood relatives. For example, in Maharashtra and Karnataka, the stamp duty is significantly lower when the gift is between parents, siblings, or children. This is done to encourage the transfer of wealth within families.
However, proper documentation of the relationship and supporting identity proofs are necessary. Compliance Calendar LLP can help in preparing and verifying these documents.
Stamp Duty on Gift Deed from Husband to Wife
Transfers between spouses also receive favorable treatment under state laws. In many states, such transfers are either exempt from stamp duty or charged a minimal rate. For example, in Delhi, the rate is 1% when gifting property to a wife. But to claim such exemptions, it is essential that the gift deed clearly mentions the marital relationship, and both parties furnish valid identity proofs. Compliance Calendar LLP ensures your documentation is in order to avail of these benefits.
How to Calculate Stamp Duty on a Gift Deed?
The stamp duty is calculated based on the market value of the property and the donor-donee relationship. For example, if a property is valued at Rs. 60,00,000 and the applicable rate is 5%, the stamp duty will be:
Stamp Duty = (5/100) x 60,00,000 = Rs. 3,00,000
Registration charges are typically 1% or a fixed amount based on state norms. Compliance Calendar LLP can help you get your property valued officially and accurately calculate the stamp and registration charges.
How to Pay Stamp Duty on a Gift Deed?
You can pay stamp duty in three ways:

E-Stamping: Done online through designated portals.

Physical Stamp Papers: Purchased from authorized vendors.

Franking: Done at designated bank branches.

It is essential to use the correct method as per state rules. Once the duty is paid, the gift deed must be submitted to the sub-registrar's office for registration. Compliance Calendar LLP provides end-to-end support for paying the correct stamp duty and completing the registration process.
Documents Required for Gift Deed Registration
To register a gift deed, the following documents are required:

Original Gift Deed

Identity Proof (Aadhaar, PAN, or Driving License)

Proof of Ownership (Sale Deed, Property Tax Receipt)

Passport Size Photos (Donor and Donee)

Address Proof of Witnesses

Encumbrance Certificate

NOC for Agricultural Land (if applicable)

Compliance Calendar LLP ensures all documents are verified and complete before submission.
Tax Implications of Gift Deed
Under the Income Tax Act, gifts of over Rs. 50,000 are taxable unless received from relatives. If a person receives property via a gift deed and the value exceeds Rs. 50,000, the stamp duty value becomes taxable under "Income from Other Sources." However, gifts from relatives such as spouse, parents, siblings, and lineal descendants are fully exempt from tax. Gifts received on occasions like marriage or through inheritance are also exempt.
Revoking a Gift Deed
According to Section 126 of the Transfer of Property Act, 1882, a gift deed once executed and accepted cannot be revoked unilaterally by the donor. It can only be cancelled under the following circumstances:

By Mutual Consent: Both parties agree to cancel based on a specific condition.

On Grounds Similar to Contract Law: Such as fraud, coercion, or misrepresentation.

It is essential to clearly state revocation conditions in the deed to avoid future legal complications. Compliance Calendar LLP can assist in drafting such clauses to make the deed legally sound.
How Compliance Calendar LLP Can Help You
At Compliance Calendar LLP, we offer a full range of services related to gift deed drafting, stamp duty calculation, and registration. Our legal experts help in:

Drafting accurate and enforceable gift deeds.

Verifying the relationship between donor and donee for exemptions.

Calculating the correct stamp duty and registration charges.

Assisting with payment through e-stamping or franking.

Ensuring all documents are complete and compliant.

Coordinating with the Sub-Registrar’s Office for smooth registration.

Advising on tax implications and revocation clauses.

Whether you are gifting property to a family member or receiving one, our team at Compliance Calendar LLP ensures that the process is smooth, compliant, and legally valid. You can book a consultation with Compliance Calendar LLP experts through mail at info@ccoffice.in or Call/Whatsapp at +91 9988424211.
FAQs
Q1. Is it mandatory to pay stamp duty on a gift deed in India?
Ans. Yes, stamp duty must be paid to validate a gift deed under Indian law. Without stamp duty payment, the deed is not legally enforceable and may attract penalties. Compliance Calendar LLP can assist you in determining and paying the correct stamp duty.
Q2. Are stamp duty rates the same across all Indian states?
Ans. No, stamp duty and registration charges differ from state to state. Some states also offer concessional rates for gift deeds between close relatives. Compliance Calendar LLP keeps track of state-specific rules to ensure compliance.
Q3. Can stamp duty be waived off in the case of blood relations?
Ans. Some states like Maharashtra, Karnataka, and Telangana offer lower or waived stamp duty for gifts between blood relatives such as parents, children, and siblings. Proper documentation is required to claim such exemptions, which Compliance Calendar LLP can help prepare.
Q4. What is the stamp duty rate for gifting property to a spouse?
Ans. Many states offer concessional rates or exemptions for gifts between spouses. For example, in Delhi, the stamp duty rate is 1% when a husband gifts property to his wife. Compliance Calendar LLP can ensure correct classification and rate application.
Q5. Is registration of the gift deed compulsory even after paying stamp duty?
Ans. Yes, under the Indian Registration Act, 1908, registration is mandatory for all immovable property gift deeds. Only after registration does the transfer become legally valid. Compliance Calendar LLP provides full support for registration.
Q6. Can a gift deed be cancelled after execution?
Ans. A gift deed cannot be revoked unilaterally. It can only be revoked under mutual agreement or legal grounds such as fraud or misrepresentation. Including a revocation clause helps prevent disputes. Compliance Calendar LLP assists in drafting such clauses.
Q7. How does Compliance Calendar LLP help with gift deed services?
Ans. Compliance Calendar LLP offers end-to-end support from drafting the gift deed, calculating stamp duty, arranging documentation, making payments, and registering the deed, to advising on tax implications. We ensure everything is handled legally and efficiently.

Gift deeds are an important legal tool to transfer property ownership without monetary consideration. Whether you’re transferring a flat to your children, gifting land to your spouse, or handing over movable assets to a sibling, it's important to know the Stamp Duty and Registration Charges on Gift Deeds in India. These charges vary across states and are influenced by the relationship between the donor and the donee. In this article, we explain the charges, exemptions, applicable rules.

What is Stamp Duty on a Gift Deed?

Stamp duty is a form of tax imposed by the government on legal documents. In the case of a gift deed, it is levied on the transfer of movable or immovable property without consideration. The stamp duty makes the gift deed legally valid. The amount depends on the market value of the property and the relationship between the donor and the donee. For close blood relatives, many states offer a concession or even full exemption. The gift deed is only legally valid if the stamp duty has been fully paid. If not paid properly, the deed can be considered invalid, and penalties may apply.

Properties That Can Be Transferred Through Gift Deed

A gift deed can be used to transfer different types of assets. These include:

Immovable Property

Land, buildings, and apartments are common forms of immovable assets transferred via gift deed. These are the most common types of gift transfers, especially among family members.

Movable Property

Includes vehicles, jewellery, shares, bonds, and other tangible items. Though less common, such gifts are legally allowed.

Existing Property Only

Only property that exists and is owned by the donor can be gifted. You cannot gift future or contingent properties.

Rules on Gift Deeds in India

The provisions related to gift deeds are governed by the Transfer of Property Act, 1882, and are uniform across India. The following are the key rules:

The transfer should be made out of free will, without coercion or undue influence.
The donor must be the rightful owner of the property at the time of the gift.
The gift must be made out of love and affection, not for money.
The donee must accept the gift during the donor's lifetime. Without acceptance, the gift is invalid.
For immovable property, registration is mandatory under the Indian Registration Act, 1908.
The correct stamp duty applicable to the state and relation must be paid.
At least two witnesses are required to sign the gift deed.
The deed should clearly describe how possession is transferred.
Though optional, a revocation clause can be added to avoid disputes.

Stamp Duty & Registration Charges on Gift Deeds Across Indian States

The Stamp Duty and Registration Charges on Gift Deeds are different in each state. The rates may also differ based on the relationship between donor and donee. Here’s a look at the applicable charges:

State	Stamp Duty	Registration Charges
Kerala	2%	1%
Tamil Nadu	7%	1%
Gujarat	3.5%	1%
Uttar Pradesh	5%	1%
Delhi	6%	1%
Rajasthan	6%	1%
Telangana	0.5%	1%
Maharashtra	3%	1%
West Bengal	5%	1%
Uttarakhand	5%	1%
Punjab	6%	1%
Bihar	6%	1%
Odisha	3%	1%
Jharkhand	3%	1%
Assam	5.6%	1%
Himachal Pradesh	6%	1%
Madhya Pradesh	5%	1%
Chhattisgarh	5%	1%
Chandigarh	5%	1%
Sikkim	1%	1%
Manipur	7%	1%
Arunachal Pradesh	6%	1%

Stamp Duty for Gift Deed in Blood Relations

Most states in India offer concessional stamp duty rates when the gift deed is between blood relatives. For example, in Maharashtra and Karnataka, the stamp duty is significantly lower when the gift is between parents, siblings, or children. This is done to encourage the transfer of wealth within families.

However, proper documentation of the relationship and supporting identity proofs are necessary. Compliance Calendar LLP can help in preparing and verifying these documents.

Stamp Duty on Gift Deed from Husband to Wife

Transfers between spouses also receive favorable treatment under state laws. In many states, such transfers are either exempt from stamp duty or charged a minimal rate. For example, in Delhi, the rate is 1% when gifting property to a wife. But to claim such exemptions, it is essential that the gift deed clearly mentions the marital relationship, and both parties furnish valid identity proofs. Compliance Calendar LLP ensures your documentation is in order to avail of these benefits.

How to Calculate Stamp Duty on a Gift Deed?

The stamp duty is calculated based on the market value of the property and the donor-donee relationship. For example, if a property is valued at Rs. 60,00,000 and the applicable rate is 5%, the stamp duty will be:

Stamp Duty = (5/100) x 60,00,000 = Rs. 3,00,000

Registration charges are typically 1% or a fixed amount based on state norms. Compliance Calendar LLP can help you get your property valued officially and accurately calculate the stamp and registration charges.

How to Pay Stamp Duty on a Gift Deed?

You can pay stamp duty in three ways:

E-Stamping: Done online through designated portals.
Physical Stamp Papers: Purchased from authorized vendors.
Franking: Done at designated bank branches.

Documents Required for Gift Deed Registration

To register a gift deed, the following documents are required:

Original Gift Deed
Identity Proof (Aadhaar, PAN, or Driving License)
Proof of Ownership (Sale Deed, Property Tax Receipt)
Passport Size Photos (Donor and Donee)
Address Proof of Witnesses
Encumbrance Certificate
NOC for Agricultural Land (if applicable)

Compliance Calendar LLP ensures all documents are verified and complete before submission.

Tax Implications of Gift Deed

Under the Income Tax Act, gifts of over Rs. 50,000 are taxable unless received from relatives. If a person receives property via a gift deed and the value exceeds Rs. 50,000, the stamp duty value becomes taxable under "Income from Other Sources." However, gifts from relatives such as spouse, parents, siblings, and lineal descendants are fully exempt from tax. Gifts received on occasions like marriage or through inheritance are also exempt.

Revoking a Gift Deed

According to Section 126 of the Transfer of Property Act, 1882, a gift deed once executed and accepted cannot be revoked unilaterally by the donor. It can only be cancelled under the following circumstances:

By Mutual Consent: Both parties agree to cancel based on a specific condition.
On Grounds Similar to Contract Law: Such as fraud, coercion, or misrepresentation.

It is essential to clearly state revocation conditions in the deed to avoid future legal complications. Compliance Calendar LLP can assist in drafting such clauses to make the deed legally sound.

How Compliance Calendar LLP Can Help You

At Compliance Calendar LLP, we offer a full range of services related to gift deed drafting, stamp duty calculation, and registration. Our legal experts help in:

Drafting accurate and enforceable gift deeds.
Verifying the relationship between donor and donee for exemptions.
Calculating the correct stamp duty and registration charges.
Assisting with payment through e-stamping or franking.
Ensuring all documents are complete and compliant.
Coordinating with the Sub-Registrar’s Office for smooth registration.
Advising on tax implications and revocation clauses.

FAQs

Q1. Is it mandatory to pay stamp duty on a gift deed in India?

Ans. Yes, stamp duty must be paid to validate a gift deed under Indian law. Without stamp duty payment, the deed is not legally enforceable and may attract penalties. Compliance Calendar LLP can assist you in determining and paying the correct stamp duty.

Q2. Are stamp duty rates the same across all Indian states?

Ans. No, stamp duty and registration charges differ from state to state. Some states also offer concessional rates for gift deeds between close relatives. Compliance Calendar LLP keeps track of state-specific rules to ensure compliance.

Q3. Can stamp duty be waived off in the case of blood relations?

Ans. Some states like Maharashtra, Karnataka, and Telangana offer lower or waived stamp duty for gifts between blood relatives such as parents, children, and siblings. Proper documentation is required to claim such exemptions, which Compliance Calendar LLP can help prepare.

Q4. What is the stamp duty rate for gifting property to a spouse?

Ans. Many states offer concessional rates or exemptions for gifts between spouses. For example, in Delhi, the stamp duty rate is 1% when a husband gifts property to his wife. Compliance Calendar LLP can ensure correct classification and rate application.

Q5. Is registration of the gift deed compulsory even after paying stamp duty?

Ans. Yes, under the Indian Registration Act, 1908, registration is mandatory for all immovable property gift deeds. Only after registration does the transfer become legally valid. Compliance Calendar LLP provides full support for registration.

Q6. Can a gift deed be cancelled after execution?

Ans. A gift deed cannot be revoked unilaterally. It can only be revoked under mutual agreement or legal grounds such as fraud or misrepresentation. Including a revocation clause helps prevent disputes. Compliance Calendar LLP assists in drafting such clauses.

Q7. How does Compliance Calendar LLP help with gift deed services?

Ans. Compliance Calendar LLP offers end-to-end support from drafting the gift deed, calculating stamp duty, arranging documentation, making payments, and registering the deed, to advising on tax implications. We ensure everything is handled legally and efficiently.