Do We Need to Pay Stamp Duty for Gifting a Flat?

Yes, you generally must pay stamp duty on a gift deed when transferring ownership of a flat (immovable property) to someone else. A gift deed legally records the voluntary transfer of property without money, but to make it legally valid and enforceable, stamp duty and registration charges must be paid before or at the time of registration with the sub-registrar.

Do I Need to Pay Stamp Duty for Gifting a Flat?

• A gift deed is subject to stamp duty, which is a tax on property transfers even if no money changes hands. 

• Stamp duty is based on the market value of the property and can vary significantly by state and by the relationship between the donor (giver) and donee (receiver).

• Most states offer concessional or lower stamp duty when the property is gifted between close family members (like spouse, children, parents, siblings).

• For example, in Uttar Pradesh, family gifts of residential or other property are now subject to a flat capped stamp duty (e.g., Rs. 5,000) when transferred within specified blood relatives, instead of the usual percentage of value plus nominal fees under recent state reforms.

• If you gift the flat to someone outside the defined close family circle, many states charge a higher stamp duty, often a percentage of the property’s market value (commonly around 5% or as per local law) plus registration charges.

• Stamp duty alone isn’t enough; the gift deed must be registered under the Indian Registration Act, 1908, to make the transfer legally enforceable. Registration attracts a separate fee (often around 1% of value or fixed amounts).

Failing to pay the appropriate stamp duty can invalidate the gift deed legally and expose the parties to penalties. Always confirm your state current rates and relationship criteria with the sub-registrar or a property lawyer before execution.

Wondering do you pay stamp duty if you gift a property? When gifting a flat in India, stamp duty is applicable. The rate varies state by state and typically ranges from 2% to 7% of the property value. However, many states waive stamp duty charges when the gift is given to relatives connected by blood.

Do You Have To Pay Stamp Duty On Gifted Property?

When gifting a property in India, calculating the stamp duty is crucial. Here’s how it works:

Stamp Duty on Gift Deeds: The stamp duty varies from 2% to 7% based on the property’s value. However, many states waive stamp duty charges when the gift is given to relatives connected by blood.

Example Calculation: Suppose the stated value of the property being gifted is Rs 1 crore. If you’re in Uttar Pradesh (UP), the receiver of the gift would pay 2% of the gift value as the stamp duty, which amounts to Rs 2 lakh.

I hope this helps you understand do you pay stamp duty on gifted property.

Read More:

Yes , the stamp duty of 3% is payable and tax on gift deed of property is applicable as follows:

The price of all gifts a person receives throughout a year is totally exempt under income tax legislation, as long as the final value of these gifts doesn't really surpass Rs 50,000 per year. If the total value of all gifts received reaches Rs 50,000, the total value of all gifts received becomes taxable. Gifts among two family members are treated favorably by income tax legislation. The transfer of any asset (movable or immovable) to such a selected family is completely tax-free in the recipient's hands, with no maximum limit. This answers your query about is stamp duty payable if a property is gifted.