Legally transfer property or movable assets as a gift — to a family member, relative, or any person, without monetary consideration.
Sub-Registrar's office of the sub-district where property is located (mandatory registration).
Disputes regarding validity of gift — 3 years from when cause of action arises.
This coverage is provided by a practicing advocate. Specific sections cited depend on the facts you provide during drafting.
A Gift Deed is a registered legal instrument through which a donor (transferor) voluntarily transfers ownership of their immovable or movable property to a donee (recipient) without any consideration (payment). The transfer is made out of love and affection, natural love, or goodwill. For immovable property, a Gift Deed must be registered under the Registration Act, 1908 for it to be legally valid.
Use a Gift Deed when transferring property to a family member — parent to child, between spouses, to siblings — without monetary consideration. Also used for charitable donations of land to trusts or institutions, gifting a business asset, or transferring movable property (shares, jewellery, vehicles) by way of gift. Tax-free gifts between specified relatives do not attract income tax under Section 56(2) of the Income Tax Act.
Sections 122–129 of the Transfer of Property Act, 1882 govern gifts of immovable property. Section 122 defines a gift as a transfer made voluntarily and without consideration. Section 123 mandates that a gift of immovable property must be effected by a registered instrument, attested by two witnesses. Section 17 of the Registration Act, 1908 makes registration of gift deeds for immovable property compulsory. Income Tax Act, 1961 (Section 56(2)(x)) — gifts from non-relatives exceeding ₹50,000 are taxable as income.
An unregistered gift deed for immovable property is legally void and cannot transfer title. The donee will not be able to claim ownership, register the property in their name, sell it, or mortgage it. The donor can revoke an unregistered gift at any time.
Generally no. Under Section 126 of the TP Act, a gift is irrevocable once accepted, unless the deed expressly provides for revocation on specific conditions (like the donee predeceasing the donor), or if the gift was obtained by fraud, undue influence, or misrepresentation — which can make it voidable.
Stamp duty on gift deeds varies significantly by state and relationship between donor and donee. Most states have concessional rates for gifts to blood relatives. In Maharashtra, gift between blood relatives: 3% (residential/agricultural) or 5% (other property). In Delhi: 3% for women, 4% for men (0% for blood relatives in some cases). Check current state rates.
No. Under Section 56(2)(x) of the Income Tax Act, gifts between spouses are exempt from tax. Similarly, gifts to children, parents, siblings, and other specified relatives (as defined in the Act) are exempt.
Yes. A gift deed can be challenged by the donor (if alive) or by legal heirs after the donor's death, on grounds of: fraud, undue influence, coercion, mental incapacity of the donor at the time of execution, or that the donor did not intend an immediate and irrevocable gift.
Yes. Property can be gifted to a minor. However, the minor's natural guardian (parent) accepts the gift on the minor's behalf. The minor becomes the absolute owner upon attaining majority. A gift involving obligations or conditions can be refused on the minor's behalf by the guardian.
Under Section 123 TP Act, a gift deed for immovable property must be attested by at least two witnesses. The witnesses must sign (or put their thumb impression), state their address, and be adults of sound mind. The donor, donee, and witnesses must appear before the sub-registrar for registration.
A gift deed takes effect during the donor's lifetime — ownership transfers immediately upon registration and acceptance. A Will takes effect only after the testator's death. A gift deed, once executed and registered, is irrevocable (subject to specific conditions), while a Will can be changed at any time during the testator's lifetime.
Gifting mortgaged property is legally possible, but the donee takes the property subject to the existing mortgage. The mortgage-holder's (lender's) consent should ideally be obtained. Without consent, the lender can still enforce the mortgage against the property regardless of the gift deed.
Please confirm all of the following before proceeding with your Gift Deed document:
Please confirm all eligibility conditions above to proceed. If you are unsure about any point, you may not be eligible for this type of notice.