Property Gift Deed in India: Required documents for registration in 2025

A gift deed in India is a legal instrument that allows an individual (the donor) to voluntarily transfer ownership of property to another person (the donee) without any monetary exchange. As per the Transfer of Property Act, 1882, such transfers must be made willingly and accepted by the recipient to be valid. When you are gifting something as large as property or a house, however, there are certain steps that should be followed, so that the new owner has clear titles and documentation of the property and how they came to own it. The documents include, identity proofs of both parties, original property papers, and the draft of the gift deed. Once registered, the gift deed becomes legally valid, ensuring a transparent property transfer.

Gift Deed in India: A Quick Info

A gift deed is a legal document that serves as proof of ownership and safeguards both parties from future disputes. Below is the quick info for a gift deed in India [1]: 

Aspect	Details
Definition	A gift deed is a legal document used to voluntarily transfer property ownership from one person (donor) to another (donee) without any monetary exchange.
Applicable law	Governed under the Transfer of Property Act, 1882 and the Indian Registration Act, 1908.
Registration	It is mandatory to register with the local Sub-Registrar’s Office under Section 17 of the Registration Act.
Required documents for registration	PAN card, original gift deed on a stamped paper, identity proof of both donor and donee, proof of ownership, and identity proof of witnesses.
Stamp duty	Varies by state;
Tax implications	Gifts received from relatives are tax-freeGifts from non-relatives above ₹50,000 are taxable
Key parties	Donor (giver) and Donee (receiver).

What is a Gift Deed?

A Gift Deed is a legal document that is used to transfer ownership of a property from one person to another as a gift. It is governed under the Transfer of Property Act, 1882 and must be registered with the local Sub-Registrar’s Office to be legally valid. Understanding a gift deed is essential, especially when considering gift tax on property, as gifts received from non-relatives exceeding ₹50,000 are taxable under the Income Tax Act, 1961 [2]. 

How is it different from Sale or Purchase Agreement?

Well, unlike a Sale or Purchase Agreement, a gift deed doesn't involve any exchange of money. It's a pure act of love and generosity from one person to another. It's also different from a Will as it doesn't come into effect after the donor's death; it transfers the ownership of the property immediately.

How to get a Gift Deed done?

Getting a gift deed done is a simple process; just follow these procedure for gift deed [3]:

• Choose the right stamp paper value as per the market rate (Source: Legal Desk)
• Fill out the Gift Deed form with all the relevant details
• Get it signed by the donor and two witnesses
• Get the Gift Deed registered at the Sub-Registrar's office
• Breathe a sigh of relief, you've successfully transferred ownership of the property!

Is a Gift Deed valid forever?

The validity of gift deed depends on various factors such as the age of the donor, the relationship between the donor and recipient, and whether it's executed properly. However, it's a legally binding document and holds up in a court of law if challenged.

If you're looking to transfer ownership of a property as a gift, NoBroker can assist you with all the legal formalities involved in the process. From getting the right stamp paper value to getting the gift deed registered, we've got you covered!

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A gift has to meet certain criteria –

• It has to be tangible
• It has to be well-defined, existing movable or immovable property
• It has to exist in the present and can’t be a future property
• It has to be transferable

Gift Deed vs Will

A will and a gift deed are two different legal instruments. Below is the comparison table for a gift deed vs a will [4]: 

Aspect	Gift Deed	Will Deed
Definition	A legal document transferring property ownership voluntarily during the donor’s lifetime.	A legal declaration transferring property after the testator’s death.
Transfer of Ownership	Immediate, effective as soon as the deed is executed and registered.	Ownership transfers only after the testator’s death.
Registration	It is mandatory to register immovable property to be legally valid.	It is not mandatory, but recommended for legal clarity.
Revocability	Generally irrevocable once executed and registered.	Fully revocable or amendable by the testator anytime before death.
Stamp Duty	The fee is paid at the time of registration and varies by state.	Not applicable; no stamp duty required.
Possession	Transferred to the donee immediately.	Possession occurs only after death.
Tax Implications	Subject to gift tax on property rules if received from non-relatives above ₹50,000.	Subject to inheritance tax rules; generally tax-free in India.

Drafting a Gift Deed

Like any legal document, the gift deed also needs to follow a certain format and meet certain requirements to be considered valid. This is why the best policy to follow is to have a lawyer assist you in drafting a gift deed. The deed must state-

• What is being gifted and from whom to whom as well as their relationship whether gift deed in blood relation or not.
• It should look like a contract between donor and donee where there is free and open giving and receiving of the gift.
• It should state that the donor is giving the gift out of free will and not being forced, it should also state that there is no exchange of money in return for the gift.
• The gift deed should also mention that the donor is not bankrupt and should be above 18 years of age.
• It should mention the date and location where the registration will take place.

Accepting a Gift Deed:

This is as important as giving the gift, the donee or receiver of the gift must accept it by signing the gift deed. There can’t be much delay as the gift and the gift deed is considered invalid if the donor dies before the donee accepts the gift.

Registering a Gift Deed or Requirements for Gift Deed:

In accordance with Section 123 in The Representation of the People Act, 1951, the gift cannot be passed on to the receiver unless and until it is registered. What you should keep in mind while registration –

• The cost of registration is calculated based on the value of the gift
• The Deed must be signed by the donor
• The Deed should have two witnesses and it has to be attested by both of them
• The donor and donee must be present in the office of the Registrar
• Valid Identification documents (passport, driving license etc.) and PAN card must be submitted to the Registrar
• Stamp duty and Transfer Duty must be paid

What's the format of a Gift Deed?

The format of a gift deed is pretty standard; it includes details such as the names and addresses of the donor and the recipient, a description of the property being gifted, the date of the gift deed, and signatures of the donor and two witnesses. (Source: Ministry of Law and Justice)

Gift Deed Format for NRI

The NRI Gift Deed format is as follows:

KNOW ALL MEN BY THESE PRESENTS that I, _____________ S/o Sh.___________ r/o _______________, transfers voluntarily, the property bearing no.___________ situated at _______________ (more particularly described in the schedule annexed hereto), the estimated value of which is Rs._____________ (Rupees_____________ only) to my daughter Smt.____________ w/o of Sh._________________ (hereinafter referred to as “the donee”) To Hold the same to the donee absolutely forever. I further declare that the said gift has been made by me out of my natural love and affection for the donee and the same has been accepted by the donee.

IN WITNESS WHEREOF, I have executed this deed this ________ day of __________.

Witness:

1.

2.

DONOR

I, Smt. ______________, the donee hereby accept the gift of the said property.

DONEE

Gift Deed Format in India

A common gift deed format for Indian citizens is as follows : 
This Gift Deed is made on this ___ day of ________, 20, by:
DONOR:
Name: __________________________
Address: ________________________
PAN/Aadhaar: ____________________

DONEE:
Name: __________________________
Address: ________________________
PAN/Aadhaar: ____________________

WHEREAS the Donor is the absolute and lawful owner of the property situated at:
Address / Survey No.: __________________________
Description: __________________________
Area: __________________________

NOW THIS DEED WITNESSETH AS FOLLOWS:
Gift Declaration: The Donor voluntarily and without consideration gifts the above-mentioned property to the Donee.

1. Possession: The Donor hereby delivers possession of the property to the Donee.
   
2. Possession: The Donor hereby delivers possession of the property to the Donee.
   
3. Acceptance: The Donee has accepted the property as a gift and agrees to abide by all terms.
   
4. No Encumbrance: The property is free from all mortgages, charges, liens, or other encumbrances.
   
5. Stamp Duty & Registration: The parties agree to pay applicable stamp duty and register this deed under the Indian Registration Act, 1908.
   
6. Governing Law: This Gift Deed shall be governed by the laws of India.

IN WITNESS WHEREOF, the Donor and Donee have executed this Gift Deed on the day, month, and year first above written.

SIGNATURES:
Donor: ______________________
Donee: ______________________

WITNESSES:

1. Name & Signature: ______________________
   
2. Name & Signature: ______________________

Important clauses in a Gift Deed

• It should be stated explicitly in the Gift Deed format in word that the donation is made out of love and affection and that no money or other kind of payment is involved.
• The property you want to give away must be in your possession, which means you must own the title to it. When giving a gift, the property must already exist.
• Any form of coercion, undue persuasion, intimidation, or fear should be avoided during the transfer.
• It is necessary to provide a full description of the property. It should include information on the structure, address, colour, area, and location, among other things.
• Whether the donor and donee are blood relatives or not, the link between them is crucial. Some state governments also give stamp duty exemptions for presents presented to blood relatives. Please note that this is different from the gift tax exemption in blood relations.If the gift comes with any additional rights or obligations, this condition must be indicated. For example, any rights to a subsequent sale or lease of the property of the exchange deed. Also, gift deed property can be sold without any conditions attached. 
• The gift deed is inextricably linked to a clear declaration of the donee’s rights. It comprises the rights to peacefully enjoy the property, to make changes to the property, to receive rents, and to profit from the property.
• A delivery clause refers to the action (express or implicit) that confirms the delivery of property possession.
• Although not required, it is recommended. It will aid in the prevention of future issues. It must be stated explicitly, not implied. This clause must be agreed upon by both the donor and the donee. Make sure you have a proper gift deed registration.

Who can be a donor/donee?

A person who transfers immovable property is known as a donor. A donor can be someone who is of sound mind and capable of agreeing. A minor cannot donate since he or she is unable to engage in a contract.

A donee is someone who accepts a gift or transfer that has been offered to him. A minor can be a donee, but the gift must be accepted on behalf of the donee by the donee's guardian. In the case of an onerous present (one that comes with strings attached), a minor can either accept or return the gift after reaching adulthood.

Documents required for Gift Deed registrations

After you've double-checked that your gift deed is completed, you've paid the stamp duty and registration fees required by your state. You'll also need a few extra documents, such as -

• PAN Card  
• Aadhar Card 
• Original Gift Deed 
• ID Proofs, such as Driver's Licence, Passport, etc.
• A document such as a sale deed establishes the donor's ownership of the property.
• Other property-related agreements that you may have entered into

What type of properties can be gifted?

Gift deed rules in India state that particular types of property can be gifted. They are listed below -

• A movable or immovable property
• A transferable property
• An existing property
• A tangible property

The gift deed has various advantages that can be attributed to it. Gifts are advantageous since they are made within the donor's lifetime. If you want someone special to look after your possessions or if you need to aid someone, you can transfer your property as a gift. Also, if there is a good probability that legal issues could arise in the future, some people would create a gift deed to avoid such disputes.

The gift deed of immovable property formats for from father to son, gift deed blood relation format, and more, etc., are all available online. 

Can a Gift Deed be revoked/cancelled?

It is impossible to rescind a donation that has been made and registered per the law. After it has been approved, it becomes the property of the donee. The giver cannot cancel the deed on his or her own. A legal gift deed is also one in which the parties have agreed that the deed will be revocable in part or in whole by the donor's will.

There are some circumstances in which gifts can be cancelled under Section 126 of the Transfer of Property Act, 1882. The cancellation of the gift deed is included in the revocation, and the donor retains control of the property. The terrain is –

• If the donor and donee agree that the gift will be withdrawn if certain specified events occur or do not occur, the gift will be cancelled. The important thing to remember here is that the donor should not have any control over the occurrence of such an incident. In provisions of the Gift Deed, both parties must have agreed to such a condition.
• The terms should not be immoral, illegal, or repugnant in the eyes of the property.

So, if the donation was made with the foregoing grounds in mind, it can be cancelled. If the donor passes away, his heirs have the right to have the deed revoked.

What are the tax implications of gifting a property?

Section 56(2)(x) of the Income Tax Act of 1961 states that if a person gets an amount of money without consideration over fifty thousand rupees after April 1, 2017, the entire sum is taxed under the heading "Income from other sources." The following individuals are exempt from the provisions of the clause:-

• from any family member; or
• on the occasion of the individual's marriage; or
• as a result of a will or inheritance; or
• in anticipation of the payer's or donor's death, as the case may be; or from any municipal government
• any trust or institution referred to in clause (23C) of section 10; or any fund, foundation, university, or other educational institution, hospital, or other medical institution, or any trust or institution referred to in clause (23C) of section 10; or
• from or on behalf of any trust or institution that has been registered under sections 12A or 12AA; or
• sub-clause (iv), sub-clause (v), sub-clause (vi), or sub-clause (via) of clause (23C) of section 10; or by any fund, trust, or institution, or any university or other educational institution, or any hospital or other medical institution referred to in sub-clause (iv), sub-clause (v), sub-clause (vi), or sub-clause (via) of clause (23C) of section 10; or

Stamp duty on gift deed in Delhi in blood relation

The following are important considerations to remember when registering a gift deed in Delhi:

• If the donee is a woman, stamp duty is 4%; if the donee is a man, stamp duty is 6%. Even if the gift is made to a family member such as a son, daughter, wife, husband, sister, brother, or other relatives, this tax must be paid.
• The registration fee is 1% of the entire Consideration value, plus Rs. 100/- for pasting costs.
• At the time of presentation, both the donor and the recipient must be present in the registrar's office, together with identity documents such as a PAN card, an election card, a passport, a driving licence, and so on.
• During the Presentation before the Sub Registrar for the Registration of a gift deed, two witnesses must be present, as well as identity documents.

State	Stamp Duty on Gift to Blood Relative
Maharashtra	5% of the property value
Karnataka	2% of the property value
Tamil Nadu	7% of the property value
Gujarat	5% of the property value
Uttar Pradesh	4% of the property value

Gift deed registration fees

State	Stamp duty for gift deed
Delhi	Women: 4%Men: 6%
Gujarat	4.9% of the market value
Karnataka	Family members: ₹1,000- 5,000Non-family: 5.6% of the land value
Maharashtra	Family members: 3%Other relatives: 5%Agricultural land/ residential property: ₹200
Punjab	Family members: NILNon-family: 6%
Rajasthan	Women: 4% and 3%Men: 5%SC/ST or BPL: 3%Widow: NoneTo wife: 1%Immediate family: 2.5%
Tamil Nadu	Family members: 1%Non-family: 7%
Uttar Pradesh	Men: 7%Women: 6%
West Bengal	Family members: 0.5%Non-family: 6%Above ₹40 lakh: Surcharge of 1%

Get Property and Legal Documentation Done via NoBroker Experts

A gift deed may seem like a small and simple document, but it packs a punch when it comes to transferring ownership of a property. So, make sure you have all your ducks in a row, choose the right gift deed stamp paper, fill out the form correctly, get it signed and registered, and voila! NoBroker also guides you through stamp duty payments, property registration, and NRI property transfers. And we ensure your paperwork is accurate and compliant. And don't forget to use NoBroker for all your real estate needs.

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