How do I make a gift deed of property in India?

Section 122 of the Transfer of Property Act, 1882 defines a 'gift' as the transfer of certain existing movable or immovable property, made voluntarily and without consideration, by one person (donor) to another (donee), and accepted by or on behalf of the donee.

Essential elements: two parties — donor and donee, both legally competent; voluntary transfer, free of coercion, fraud and undue influence; without consideration — no money, no exchange of value, no reciprocal obligation; existing property — the donor must own and possess the property at the time of gift (Section 124), and future property cannot be gifted; acceptance by the donee during the donor's lifetime and while the donor is capable of giving (acceptance can be express or implied by taking possession); and for immovable property, the deed must be in writing, attested by 2 witnesses, and registered (Section 123).

A gift deed without proper acceptance during the donor's lifetime is void. Where the donee is a minor or unable to accept, a guardian can accept on their behalf.

Stamp duty on gift deeds varies dramatically by state and by the relationship between donor and donee.

Within family (lineal ascendants / descendants, spouse, siblings): Maharashtra charges ₹200 for gifts to blood relatives (under the 2013 amendment); Delhi charges 4% with a reduced rate for women and some concessional categories; Karnataka has a fixed ₹5,000-₹10,000 for family gifts; Tamil Nadu 1% for family gifts; Uttar Pradesh a lower duty of ₹5,000 for immediate family; Gujarat 4.9% on market value (concessional within family); Telangana and Andhra Pradesh 5%, concessional within family.

Gift to non-family: full stamp duty applies (3-7% depending on state). Registration fee: 1% of property value, capped at varying amounts.

Always check the latest rates with your state's Stamps and Registration Department before drafting. A common pitfall is undervaluation — Sub-Registrars use the Ready Reckoner or circle rate, not your declared value. Engaging a reputable, specialised property lawyer ensures correct duty calculation and avoids notices.

Executing and registering a gift deed runs in eight steps.

Step 1 — draft the gift deed covering: donor's and donee's details (name, age, address, PAN); property description (boundaries, area, survey / plot number); statement of donor's title; statement that the gift is voluntary and without consideration; statement of acceptance by the donee; relationship between parties (for concessional duty); date and place of execution; and signatures of donor, donee and 2 witnesses.

Step 2 — calculate and pay stamp duty: buy stamp paper or pay online via your state's stamp portal. Step 3 — visit the Sub-Registrar's office with the original gift deed, ID proofs of donor, donee and witnesses, passport-size photographs, and parent title documents.

Step 4 — registration formalities: biometric capture, photographs and signatures before the Sub-Registrar. Both donor and donee must be physically present, or authorised representative for special cases. Step 5 — pay the registration fee (1% of property value, subject to state caps). Step 6 — receive the registered gift deed — usually same day in most states.

Step 7 — apply for mutation in municipal and revenue records (see our mutation guide). Step 8 — update encumbrance certificate by obtaining a fresh EC reflecting the gift.

Gift taxation runs under Section 56(2)(x) of the Income-Tax Act, 1961.

Gifts from specified relatives are fully exempt: spouse; brother or sister of the individual; brother or sister of the spouse; brother or sister of either parent; any lineal ascendant or descendant of the individual or spouse; and spouse of any of the above relatives. Gifts received on the occasion of marriage are exempt regardless of donor. Gifts received under a will or by way of inheritance are exempt. Gifts received from a charitable trust under Section 12A are exempt.

Gifts from any other person: taxable at slab rates if the aggregate of all gifts in the financial year exceeds ₹50,000 from non-relatives.

Immovable property gifts: the stamp duty value of the property is treated as 'income' for the donee if from a non-relative and exceeds ₹50,000. On subsequent sale by the donee, capital gains apply — the donee's holding period includes the donor's holding period, and the cost of acquisition is the donor's original cost with indexation benefits.

For complex situations (gifts involving NRI, foreign property, partial-share gifts), engage a reputable, specialised tax lawyer or CA.

Generally no — once a gift is validly made, accepted and registered, it is irrevocable. But Section 126 of the Transfer of Property Act, 1882 creates specific exceptions.

Mutual agreement of donor and donee: the gift can be cancelled by mutual consent, with both executing a Cancellation / Reconveyance Deed registered at the Sub-Registrar's office. Conditional gift: if the gift deed specified a condition (e.g. 'on condition that the donee takes care of me until my death') and the condition fails, the gift can be revoked — the condition must be specified in the gift deed itself.

Fraud, coercion or undue influence: the donor (or legal heirs) can sue to cancel the gift deed. Limitation: 3 years from when fraud was discovered. Donor's incapacity at time of execution: if the donor was of unsound mind, intoxicated or below 18, the gift is void.

The Maintenance and Welfare of Parents Act, 2007 — Section 23 — allows senior citizens to cancel gifts to children who fail to provide promised maintenance. The Tribunal under the Act has jurisdiction. The Supreme Court in Sudesh Chhikara v. Ramti Devi, (2022) 17 SCC 270 expanded the Maintenance Act remedy.

Engage a reputable, specialised property lawyer for revocation matters. See our related will-making guide.