Stamp Duty on Gift Deed: Rates, Exemptions & State Wise Rules in 2025

Stamp duty on a gift deed is a compulsory tax paid when the property or assets are transferred as a gift. A gift deed is a legal document that allows the voluntary transfer of money without any exchange of money. It is the best way to avoid legal disputes and ensure clear ownership. It is widely used among family members and has become recognised under the Transfer of Property Act 1882. Gift deed charges vary from state to state and with the two parties. For example, the registration charges on a Gift Deed to a blood relative are lower. Both movable and immovable assets can be gifted. Registering a deed ensures legal validity, making it useful for tax clarity.

Understanding Stamp Duty on Gift Deed

Gifting is the act of a person willingly transferring certain or all of his rights in an asset he owns to another person for no monetary payment. Given that they do not profit from the transfer of ownership of the property, it may appear strange that a donor is asked to pay a charge to have his property transferred to someone else. Although giving a house is not a typical transaction, it has income tax and stamp duty implications. In India, gift deed stamp duty differs from state to state and can range from 2% to 7% of the property value.

Gift Deed Registration Charges

Registration charges for a gift deed are fees paid to legally record the transfer of the property as a gift. These charges vary from state to state and their relation to the other party. Below is the list of all the state and their stamp duty:

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Advocate Fees & Documentation Cost

When preparing a gift deed, you might need a lawyer to draft and review a document. Advocate fees for a gift deed usually range from ₹2,000 to ₹10,000, depending on the state and the complexity of the transfer. Additionally, documentation costs, such as notary charges, affidavits, ID proof, and property papers, will be added. These are important to ensure that the gift deed is legally valid and free from any future dispute.

How to Register a Gift Deed?

Registering a gift deed ensures legal proof of the property transfer. It is a simple process, and below is the step-by-step process to register:

• Draft a Gift Deed: The first step is to get a gift deed prepared by a legal expert on a stamp paper.
• Get Donor & Donee Signature: Both parties must sign the deed in the presence of two witnesses.
• Calculate Stamp Duty & Charges: Pay the applicable gift deed registration charges for family members, usually lower than those for the family member.
• Visit the Sub-Registrar's Office: Submit the deed with your identity, address, and property documents.
• Complete Biometric & Verification: Both parties and the witness must appear for verification and biometric recording.
• Collect Registration Gift Deed: Once everything is successfully submitted, receive the certified copy from the registrar.

Bursting Gift Deed Myths: 

Owners who offer their property as a gift should know that they lose ownership of the transferred item once the gift deed is recorded. This is because the terms of a gift deed, like a sale or a relinquishment document, take effect immediately. This is not the scenario with a Will whose provisions only take effect when Will's maker has died. Remember, however, that a gift deed is only valid until the stamp duty on the gift deed has been paid.

What Property Can Be Gifted?

Any immovable property that satisfies the requirements of Section 122 of the Transfer of Property Act, 1882, may be transferred via a gift deed. A gift tax on immovable property in India must be recorded with the sub-registrar office in accordance with sections 123 of the Transfer of Property Act and 17 of the Registration Act of 1908, just like a sale deed, with the exception that no money is exchanged in the transfer of the property. The contract would be void if this wasn't done.

Income Tax on Gift Deed

The question of whether gifts are taxable is something many people often wonder about. This section will help you understand how gifts are treated under income tax for both individuals and Hindu Undivided Families (HUFs).

A gift is any money or property given without asking for anything in return or for a price that’s too low to be considered fair.

Types of gifts from a tax point of view:

• Monetary gifts – Money given as a gift (cash, cheque, draft, etc.)
• Gift of movable property – Physical items received without paying
• Movable property bought at a discount – Items received for less than fair market value
• Gift of immovable property – Real estate received free of cost
• Immovable property bought cheap – Real estate bought for less than its stamp duty value

If you receive monetary gifts totaling more than ₹50,000 in a financial year, that amount becomes taxable.

Earlier, gifts from an Indian resident to a non-resident weren’t taxed in India. But now, as per Finance Act 2019, if an Indian resident gives money or gifts (without payment) to a non-resident or foreign company, that income is taxable in India from July 5, 2019 onwards.

So, always check if a gift you received could be taxable, especially if it involves big amounts or cross-border transactions!

Stamp Duty on Gift Deed in Delhi Rates and Legal Requirements for Gift Deed

The Registration Act of 1908, which governs all deeds states that gift deed stamp duty in Delhi must be registered. 

• A qualified appraiser must appraise the property to be gifted.
• If the Donee is a woman, stamp duty in Delhi on gift deed will be 4 percent of the property's worth and 6 percent if the Donee is a man.
• The registration price will be 1% of the whole amount plus Rs.100/- in pasting fees. 
• Registration applications must be submitted to the district's concerned Sub Registrar office. The average response time is 15 days.

What is the Stamp Duty on Gift Deed in Maharashtra? 

The stamp duty on gift deed in Maharashtra is 3% of the property’s worth, according to Article 34 of the Maharashtra Stamp Act, responsible for the property gift deed rules which was revised in 2017. The gift deed stamp duty on gifted property is Rs 200 if the property in question is a residential or agricultural property gifted (without payment) to family members. 

Stamp Duty on Gift Deed in Andhra Pradesh

The registration fee for a gift deed in Andhra Pradesh is 0.5 percent, with a maximum of Rs 10,000.

Stamp duty On Gift Deed of Commercial Property in Maharashtra

There are no exemptions from Stamp Duty and Registration Fees when it comes to commercial property. The Stamp Duty and Registration fees will be the same as the Sale / Conveyance Deed. If the property is in Maharashtra, for example, there will be 5% Stamp Duty + 1% LBT + 1% Registration Fees. These fees will be calculated based on the property's Government Value.

Stamp Duty on Cash Gift Deed in Maharashtra

A cash gift deed is an agreement in which the donor (the person who pays the money) can give money to the Donee (the person who receives the money) without any other compensation or exchange. It depicts a donation of cash given voluntarily by one person to another. This deed details the amount of money to be transferred and any gift restrictions. . The rate of stamp duty for gift deed in Maharashtra for cash is 3%.

Stamp Duty on Gift Deed for Cash in Delhi

Because it records the act of providing a gift, a gift deed for cash is an important document, especially when gifting a significant sum of money. The stamp paper value for cash gift deed creates a legally binding document. A gift deed ensures proof of such transfer for both the donor and the Donee, avoiding future misunderstandings and misuse. The rate is 4%.

Stamp Duty on Gift Deed in Blood Relation

When it comes to stamp duty on gift deed in blood relation Maharashtra, immovable property, such as lands, a house, or an apartment, can now be passed down to one’s children or blood relatives without having to pay stamp duty. On March 25, 2015, Hon'ble Revenue Minister Eknath Khadase informed the Govt in the Assembly. As a result, stamp duty on the transfer of lands or flat immovable property to family members is waived.

He declared that immovable property, such as land, a house, or a flat, can now be transferred to the owner’s children or even blood relations merely by signing a transfer deed on Rs. 500/- stamp paper and paying no stamp duty on gift deed. Families of transferors will be relieved by this announcement, as they will no longer be required to pay 5% stamp duty at market value as per ready Reckoner. The minister stated that a transfer document executed on Rs. 500/- stamp-paper will suffice in such a case. Therefore, no stamp duty for gift deed in Maharashtra for blood relations. 

Stamp Duty on Gift Deed in Blood Relation in Delhi

Every state in India has a varied and regulated percentage of stamp duty that must be paid when a gift deed is registered. A gift deed's stamp duty is usually less than a sale deed, although it is computed as a conveyance rather than a sale deed. The requirements for levying stamp duty on a gift deed differ by state. For example, gift deed stamp duty in Delhi is different for males and females, as it is levied at 5% and 3%, respectively.

Stamp Duty on Gift Deed in Blood Relation in Haryana

In Punjab and Haryana, a gift of immovable property to a blood relative is exempt from stamp duty. Parents, children, grandchildren, sisters, and spouses would all be eligible for the exemption as per the transfer of property from parent to child in India guidelines. The stamp duty on gift deed between brothers would follow the same.

Stamp Duty on Gift Deed from Father to Son

The stamp duty on gift deeds is the same as on a regular sale. There is an exception in the case of certain relatives, such as gifts from father to son. Until May 16, 2017, the rate of stamp duty on such a transaction in Maharashtra was restricted to Rs 200. In some states, the stamp duty will now be 3% of the transaction's market value, whereas, in others, there will be no tax at all.

Stamp Duty on Gift Deed from Husband to Wife

To protect their interests, one spouse would be entitled to transfer immovable property to the other spouse, and stamp duty would not be an obstacle to property transfer. This step will go a long way toward protecting the spouse's interests in difficult family situations or medical situations. Thus, there is no stamp duty on gift deed applicable here.

What are the Gift Deed Society Transfer Fees?

Society transfer fees may apply when you transfer a property within the housing society using a gift deed. These fees vary from society to society, ranging from ₹5,000 to ₹25,000. Some societies charge a percentage of property. Also, gift deed stamp duty must be paid to make the process legal. Check society's bylaws because some may offer a discount for transfers among blood relatives. This ensures the process is legal and valid.

How do You Calculate Stamp Duty on a Gift Deed?

Because stamp duty on gift deeds must be paid as a proportion of the property value, the computation would be based on each state's percentage levied on gift deed registrations. For example, in the state of Uttar Pradesh, the gift recipient must pay a stamp duty of 2% of the present value. If the gifted property has a declared worth of Rs 1 crore, the person receiving it will have to pay Rs 20 lakh in stamp duty on the gift deed.

Is it Possible to Reclaim the Property You were Given?

A gift can be returned; however, this must be considered and included in the recorded gift deed. Revocation of the agreement is not feasible under Section 126 of the Transfer of Property Act unless the donor indicates that he retains the right to reclaim the gift in the registered contract. This means that the donor must clearly state while drafting the gift deed that even after the gift deed is performed, the donor retains the right to withdraw the gift deed and restore the gift from the Donee if and when he so desires.

Stamp Duty on Gift Deed from Mother to Son

A gift deed from mother to son stamp duty, is usually lower as it is transferred between close family members. In many indian states, the stamp duty for such gifts is around 2% of the property value. Some states like Delhi and Telangana change only ₹100. However, the registration charges are around 1%.

Stamp Duty on Relinquishment Deed vs Gift Deed

Stamp Duty varies for both deeds. Relinquishment deed stamp duty is usually similar to a gift deed when it is done between family members. However, if it is given to a non-family member, the charges are high. A gift deed stamp paper is used when gifting property without any payment. Both the deeds need registration and payment of applicable stamp duty, which differs from state to state. It is advisable to check the local deeds before proceeding. 

How Can NoBroker Help?

The transfer of a dwelling property under a gift must be completed by a registered instrument/document signed by or on behalf of the individual gifting the property and attested by at least two witnesses, according to the Transfer of Property Act and paying stamp duty on gift deed. If you need help from a professional tax and financial consultant then you will certainly find great options on Nobroker. Please leave a comment below this article; our executive will be in touch with you soon.

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