Gift Deed Registration Services
Legally Secure Property Transfer in India
At Tax Pal Solutions, we help individuals register Gift Deeds for movable and immovable properties. This ensures a legally valid, tax-efficient, and recognized transfer of assets from one person (donor) to another (donee). Our experts guide you through drafting, stamping, registration, and compliance under Indian laws.
What is a Gift Deed?
A Gift Deed is a legal document used to transfer ownership of property without any exchange of money, under the Transfer of Property Act, 1882.
- Can include movable assets like cash, jewellery, or shares
- Can include immovable property like land, flats, or buildings
- Must be in writing, signed by donor, and accepted by donee during the donor’s lifetime
- Registration is mandatory for legal validity
Once registered, the donee becomes the legal owner of the gifted property.
Tax Note: Gifts from close relatives are tax-exempt. Gifts from non-relatives exceeding ₹50,000 in a year are taxable under Section 56(2)(x) of the Income Tax Act.
Why Use a Gift Deed?
- Provides legal proof of transfer
- Prevents family disputes or confusion in the future
- Ensures a safe and recognized transfer under law
- Enables tax benefits when gifting to eligible relatives
Key Components of a Gift Deed
- Full details of donor and donee, including relationship
- Complete property description – location, size, boundaries
- Clear statement that the gift is voluntary and without money
- Signatures of donor, donee, and two witnesses
- Execution on non-judicial stamp paper
- Registration at the sub-registrar’s office
Important Clauses & Governing Laws
Key Clauses
- Donor & Donee Details: Full names, addresses, and relationship
- Property Description: Exact details of the gifted property
- Transfer Clause: Confirms voluntary transfer
- Consideration Clause: Made out of love and affection, not payment
- Acceptance Clause: Confirms donee has accepted the gift
- Revocation Clause: States conditions for revocation, if any
- Rights & Responsibilities: Defines any duties of the donee
- Delivery of Possession: Details on handover
- Witnesses: At least two signatures required
- Irrevocability: Confirms gift cannot be revoked once registered
Governing Laws:
- Transfer of Property Act, 1882 (Sections 122–129)
- Indian Contract Act, 1872
- Registration Act, 1908
- Stamp Act (state-specific duties)
- Income Tax Act, 1961 (Section 56(2)(x))
Types of Properties Transferable Through Gift Deed
| Property Type | Description |
|---|---|
| Immovable | Land, houses, flats, or buildings |
| Movable | Cars, jewellery, shares, bonds |
| Existing Property | Only property currently owned by donor |
Eligible Relatives for Tax-Free Gifts
- Spouse, Parents, Children
- Siblings, Grandparents, Grandchildren
- Daughter-in-law, Son-in-law
- Brother-in-law, Sister-in-law
- Lineal ascendants or descendants
Steps to Draft a Legally Binding Gift Deed
- Write date and place of deed execution
- Add full donor and donee details
- Include property description
- Have two witnesses sign the deed
- Execute on non-judicial stamp paper
- Register at the nearest sub-registrar’s office
Rules for Gift Deeds
- Must be voluntary with no pressure or coercion
- No exchange of money
- Must be in writing for immovable property
- Registration mandatory at sub-registrar office
- Witnessed by at least two people
- Accepted by receiver while donor is alive
- Gift must already exist
- Cannot be revoked unilaterally after registration
- Tax rules apply for non-relatives exceeding ₹50,000
Documents Required
| Document | Purpose |
|---|---|
| Original Gift Deed | Legal details of the gift |
| Identity Proof | Donor, donee, and witnesses |
| Ownership Proof | Sale deed, registration, tax receipts |
| Passport-size Photos | Donor and donee |
| Witness Address Proof | Aadhaar, electricity bill, etc. |
| Encumbrance Certificate | Confirms property is debt-free |
| NOC | Required for agricultural or restricted property |
Registration Process in India
- Prepare Documents – Draft deed, proofs, witness details
- Pay Stamp Duty – Varies by state and property value
- Visit Registrar/Sub-Registrar – Donor, donee, and witnesses must be present
- Certificate Issuance – Legal registration certificate issued
Tip: Stamp duty is often concessional for blood relatives.
Stamp Duty & Registration Charges
| State | Stamp Duty | Registration Charges |
|---|---|---|
| Kerala | 2% | 1% |
| Tamil Nadu | 7% | 1% |
| Gujarat | 3.5% | 1% |
| Uttar Pradesh | 5% | 1% |
| Delhi | 6% | 1% |
| Maharashtra | 3% | 1% |
| Telangana | 0.5% | 1% |
| West Bengal | 5% | 1% |
| Rajasthan | 6% | 1% |
Rates vary by state and relationship; example: Maharashtra offers Rs. 200 stamp duty for blood relatives.
How to Revoke a Gift Deed
- Mutual Agreement: Can be revoked if specific condition occurs
- Fraud or Coercion: Can be cancelled similar to contract law
- Legal Restrictions: Donor alone cannot revoke after registration
Consequences of Non-Registration
- No legal ownership for donee
- Cannot be used as evidence in court
- Potential legal disputes
- Tax complications
- No rights to sell, rent, or mortgage
Gift Deed Format
- Written on non-judicial or e-stamp paper
- Contains donor, donee, property, and witness details
- Must include all key clauses
- Registration at sub-registrar office is mandatory
Certification
