Guide · Owning

Gift deed for property in India: stamp duty and tax

A gift of a house or land needs a registered gift deed. Stamp duty to family differs by state; the recipient's tax under the Income-tax Act 2025 and NRI limits.

Checked on against the official sources at the bottom of the page.

In short

A gift of a house, flat or plot in India is valid only if made by a registered instrument signed by the donor and attested by at least two witnesses (Transfer of Property Act, section 123). Stamp duty on that deed is set by the state, and many states charge much less when the donee is a close relative. The tax risk sits with the recipient: under section 92 of the Income-tax Act, 2025 a recipient can be taxed on a property gift above ₹50,000 unless it comes from a “relative” as the Act defines that word. A gift of agricultural land cannot be made by an NRI to anyone but a resident.

What makes a gift valid

Section 122 of the Transfer of Property Act, 1882 defines a gift as the transfer of existing property “made voluntarily and without consideration”, accepted by or for the donee; acceptance must be made in the donor’s lifetime, or the gift is void. Section 123 says a gift of immovable property needs a registered instrument signed by or for the donor and attested by at least two witnesses. Under section 17(1)(a) of the Registration Act, 1908, “instruments of gift of immovable property” must be registered, and under section 23 the document must be presented to the registering officer within four months of execution. Section 126 limits revocation: a gift the donor can revoke “at the mere will of the donor” is void, and a gift cannot otherwise be revoked except in the cases where a contract could be rescinded.

Stamp duty: three states compared

StateStamp duty on a gift of immovable property (from the text I read)
Maharashtra (Stamp Act, Article 34, text as on 1 January 2022)Gift to a husband, wife, brother, sister or lineal ascendant or descendant: 3% of market value. If the property is residential or agricultural and the donee is a husband, wife, son, daughter, grandson, granddaughter or wife of a deceased son: ₹200. Other donees: the conveyance rate of Article 25 on market value
Rajasthan (registration department rate sheet, Hindi and English, undated)As I read the sheet: 2.5% for gifts to father, mother, son, brother, sister and husband; 0% for gifts to wife, daughter, daughter-in-law and the children of a son or daughter. The registration-fee columns are not clear, so check them
Uttar Pradesh (schedule posted by the registration department, undated)The same duty as a conveyance for a consideration equal to the value of the property. I found no family concession in that schedule: check the current notice

Delhi, Karnataka, Tamil Nadu, Telangana, West Bengal, Gujarat and Haryana portals could not be read on 14 October 2026. For Kerala, Uttarakhand, Odisha, Chandigarh and Puducherry, see the gift rows in their own guides (for example Kerala). Do not assume a family rate applies; read your state’s schedule or ask the sub-registrar. See stamp duty and registration charges for how states set duty on market value.

Calculation, using the Maharashtra text: a residential flat with a market value of ₹80 lakh. Gifted by a father to his son: ₹200. Gifted by a man to his brother: 3% of ₹80,00,000 is ₹2,40,000. These are my arithmetic on the text of 1 January 2022; later amendments are possible, so confirm on the department’s current schedule. Duty on a gift to a niece, nephew, cousin or friend is not in the family categories of that Article.

Tax for the donee

The charge falls on the recipient. Section 92(2)(m) of the Income-tax Act, 2025 taxes, as income from other sources, a sum of money received without consideration above ₹50,000, and immovable property received without consideration whose stamp duty value exceeds ₹50,000. Section 92(3) removes from that charge anything received:

  • from any relative;
  • on the occasion of the individual’s marriage;
  • under a will or by inheritance;
  • in contemplation of the payer’s death;
  • from a local authority, or from certain registered non-profit organisations.

Section 92(5)(g) defines relative, for an individual, as the spouse; a brother or sister; a brother or sister of the spouse; a brother or sister of either parent; any lineal ascendant or descendant; any lineal ascendant or descendant of the spouse; and the spouse of any of those persons. That list does not name cousins, nieces, nephews or friends, so a gift of property from one of them above ₹50,000 in stamp duty value is, on the text, inside the charge.

Tax for the donor, and the donee’s later sale

A gift by an individual is not a “transfer” for capital gains: section 70(1)(b) says section 67 does not apply to a transfer “under a will or a gift or an irrevocable trust”. The donor therefore has no capital gain on the gift. When the donee later sells, the cost of acquisition is the donor’s cost plus improvements (section 73, Table serial number 1), and the donor’s holding period counts (section 2(101)(c)(B)(I)). See capital gains tax on property.

NRIs and OCIs

The RBI’s FAQ on immovable property says an NRI or OCI may receive as a gift a property other than agricultural land, farm house or plantation property from a resident, NRI or OCI relative, and may make a gift of agricultural land only to a resident. See NRIs buying property in India.

Steps

  1. Agree the property and the donee, and check the title and any loan or encumbrance.
  2. Pay stamp duty in your state, then draft the deed with two attesting witnesses.
  3. Present it for registration within four months of execution.
  4. Apply to the local authority to mutate the record (see inheriting property in India).

What it costs

Stamp duty (state-specific, above), registration fee (state-specific; I could not read most fee tables) and professional fees. The donee’s income tax cost arises only outside the exceptions of section 92(3).

Which professional to consult

A property lawyer (advocate) enrolled with the State Bar Council drafts the deed and checks the title. A chartered accountant advises on section 92.

Frequently asked questions

Does a gift deed have to be registered?

Yes, for immovable property: Transfer of Property Act section 123 and Registration Act section 17(1)(a).

Can I gift my share of a house to my spouse?

The gift needs the same registered deed. In Maharashtra, as read, the duty is ₹200 for residential property gifted to a spouse. In other states, check the schedule.

Is a gift from my brother taxable?

Not under section 92: a brother is a “relative” under section 92(5)(g).

Can a gift deed be cancelled?

Only in the cases section 126 allows. A clause letting the donor revoke at will is void.

Are the rules the same for gifts of agricultural land?

Not for NRIs and OCIs: they may make a gift of agricultural land only to a resident.

More guides on owning

Sources

All guides · Payotte India