Gift Deed Registration

A Gift Deed is a legal instrument under Sections 122 to 129 of the Transfer of Property Act, 1882 that enables a property owner (donor) to voluntarily transfer immovable property to another person (donee) without any monetary consideration (i.e., free of cost). For such a gift to be legally valid, it must be made voluntarily, without coercion, accepted by the donee, and mandatorily registered at the Sub-Registrar's office under Section 123 of the Act — an unregistered gift deed for immovable property is void and transfers no title whatsoever. Stamp duty is the most significant cost factor: most Indian states offer a substantial concession for gifts among blood relatives (spouse, children, parents, siblings). In Maharashtra, for instance, a gift deed among family members attracts only ₹200 as stamp duty, whereas Karnataka charges 0.5% (minimum ₹1,000). For gifts to non-relatives, full market-value stamp duty applies. From an income tax perspective, gifts received from specified relatives (as defined under Section 56(2)(x) of the Income Tax Act, 1961) are fully exempt from tax regardless of value. Gifts to non-relatives are taxed as “Income from Other Sources” in the donee's hands if the aggregate value exceeds ₹50,000 in a financial year. Capital gains tax implications arise for the donor only if the gift is treated as a deemed transfer; however, gifts among specified relatives are exempt from capital gains under Section 47(iii). The donee assumes the original cost of acquisition and holding period for future capital gains calculation.