📘 Stamp Duty on Gift Deed: Registration, Charges, and Calculation
Gifting property is a thoughtful gesture, especially among family members. However, it’s important to understand the legal and financial implications that come with it—particularly stamp duty on gift deed and registration charges. At Raaj Real Estates, we help you navigate these nuances smoothly. This guide explains everything you need to know about gift deed procedures, costs, and tax aspects.
💡 What is a Gift Deed?
A gift deed is a legal document used to voluntarily transfer ownership of property from one person (the donor) to another (the donee) without monetary exchange. It can involve movable or immovable property—land, homes, vehicles, etc. For it to be legally binding, it must be in writing and registered with the local sub-registrar.
In Tamil Nadu, 1% is the gift deed registration charge when transferring property between family members.
⚖️ Legal Framework for Gift Deeds in India
Governed by the Transfer of Property Act, 1882, a gift deed must meet three criteria:
Intent to Gift: Voluntary transfer with no expectations.
Acceptance: The donee must accept the gift during the donor’s lifetime.
Registration: It must be registered with the sub-registrar.
Stamp paper values vary by state. For instance:
Tamil Nadu: 7%
Maharashtra: 3%
Delhi: 4%–7%
Andhra Pradesh: 0.5%
🧾 Importance of Stamp Duty on Gift Deeds
Stamp duty on gift deed is a mandatory tax imposed by state governments. It legalizes the document, making the gift transaction valid and enforceable. Skipping stamp duty can result in fines or invalidation of the deed.
📊 Stamp Duty Rates for Gift Deeds in India
Stamp duty rates vary widely. Here’s a quick snapshot:
| State | Stamp Duty Rate |
|---|---|
| Andhra Pradesh | 0.5% |
| Delhi | Men – 6%, Women – 4% |
| Gujarat | 4.9% of market value |
| Karnataka | ₹1,000 to ₹5,000 |
| Maharashtra | Family – ₹200; Others – 3% |
| Punjab | Non-Family – 6% |
| Rajasthan | Women – up to 4%; Family – 2.5% |
| Tamil Nadu | Family – 1%; Others – 7% |
| Uttar Pradesh | Men – 7%, Women – 6% |
| West Bengal | Family – 0.5%; Others – 6% |
These rates are indicative and subject to change based on state policies.
💸 Registration Charges for Gift Deeds
Besides stamp duty, you must also pay registration charges. These are usually 1%–2% of the property value.
Examples:
Maharashtra: Around 1%
Andhra Pradesh: Capped at ₹10,000
📐 How to Calculate Stamp Duty
Follow these steps:
Determine Property Value: Use government guideline or market rate.
Refer to State Rates: Find applicable stamp duty percentage.
Calculate Duty: Multiply value by the rate.
In Tamil Nadu, 1% is charged for family gifts; 7% for others.
🧾 Tax Implications
Under the Income Tax Act, here’s what applies:
Gifts from relatives are tax-exempt.
Gifts over ₹50,000 from non-relatives in a financial year are taxable.
Stamp duty on gifts within blood relations may be reduced or exempt.
🎁 Exemptions and Concessions
You may qualify for concessions such as:
Lower stamp duty for family members
Special exemptions for residential/agricultural property transfers
Gender-based discounts in some states
📝 Steps to Register a Gift Deed
Here’s a simple breakdown:
Pay Stamp Duty: Online or at approved banks.
Draft the Deed: Include all property and party details.
Prepare Documents: ID, property papers, photos, etc.
Visit Sub-Registrar: Donor, donee, and two witnesses must be present.
Sign in Presence: Complete execution on-site.
Collect Registered Copy: For future use and legal proof.
✅ Conclusion
Understanding stamp duty on gift deed is essential for anyone planning to transfer property legally and safely. At Raaj Real Estates, we ensure that your gifting process is smooth, transparent, and fully compliant with state laws.
Whether you’re gifting property to a loved one or planning your estate, knowing the rules will help avoid complications later.
