📜 Gift Deed in India – Format, Registration, Stamp Duty & Rules
A Gift Deed is a legal document used to voluntarily transfer movable or immovable property from one person (the Donor) to another (the Donee) without consideration. In India, a gift deed must be executed on stamp paper and registered with the Sub-Registrar of Assurances to be legally valid.
✅ What is a Gift Deed?
A Gift Deed is defined under Section 122 of the Transfer of Property Act, 1882. It documents the transfer of ownership from donor to donee out of love and affection, without monetary exchange.
📄 Gift Deed Format
The standard Gift Deed format includes:
- Title – “Deed of Gift”
- Details of Donor & Donee (Name, PAN, Address, Age, Relationship)
- Description of property being gifted
- Free will & consent statement
- Acceptance clause
- Witness details & signatures
🏠 What Properties Can Be Gifted?
- Immovable Property: Land, house, flat, shop
- Movable Property: Cash, jewellery, vehicles
- Shares & Securities
- Other Tangible Assets
⚠️ Note: Future property or property not owned by the donor cannot be gifted.
🎯 Advantages of a Gift Deed
- Immediate transfer of ownership
- Legal validity under Indian law
- Helps in family settlement & tax planning
- Avoids disputes after donor’s death (unlike wills)
🚫 How to Revoke a Gift Deed?
A gift deed can only be revoked if:
- A revocation clause is included in the deed
- Both donor & donee agree in writing
- In case of fraud, coercion, or misrepresentation
📑 Components & Important Clauses
- Donor & Donee details with PAN/DOB
- Relationship declaration
- Schedule of gifted property
- Acceptance clause by donee
- Witnesses & signatures
💰 Stamp Duty & Registration Charges
Stamp duty varies across states and is usually concessional for gifts to relatives.
| State | Relatives | Others |
|---|
| Maharashtra | ₹200 fixed | 3% of property value |
| Delhi | 2% (female), 3% (male) | Up to 6% |
| Karnataka | ₹1,000 fixed | 5% of property value |
| Tamil Nadu | 1% of market value | 7% of market value |
✔ Always check the latest state stamp duty before registration.
👥 Who can be Donor & Donee?
- Donor: Any person of sound mind & legal owner of the property
- Donee: Any individual, relative, trust, or institution (minors require guardian acceptance)
📌 Tax Implications
As per Section 56(2)(x) of the Income Tax Act, gifts are tax-free if received from relatives. For non-relatives, gifts exceeding ₹50,000 are taxable as “Income from Other Sources”.