There are various ways to transfer property rights to another person, namely sale, will or gift. While sale deed and will deed transfer methods are popular and widely known in the industry, the gift deed method is a less familiar term for people. A gift deed transfer method is followed when a property owner voluntarily transfers property rights to a friend, relative, or any other close family member. Even though there is no monetary transaction involved, the property must be registered in the name of the recipient by paying stamp duty. For a gift deed to be valid, it is mandatory to register the property with a sub-registrar as per section 17 of the Registration Act, 1908, and section 123 of the Transfer of Property Act.
Gift Deed Registration Charges
The charges applicable on registration of a gift deed vary from one state to another. However, in most states, stamp duty charges for property transfer by way of gift is the same as for sale deed. There is also a certain concession offered by some states if the transfer of property occurs between blood relatives. The table below shows charges applicable on gift deed in various states.
| State/UT | Gift Deed Registration Charges |
| Delhi | 6% for men and 4% for women |
| Maharashtra | Rs. 200 Stamp Duty and Rs. 200 Registration charges, for gifting the residential or agricultural land to one’s spouse, children, grandchildren or wife of a son who has died |
| West Bengal | ● For the transfer to a non-family member: 5% of the property’s market value in panchayat areas, and 6% of market value in municipal areas ● For the transfer to a family member: 0.5% of the market value of the property |
| Uttar Pradesh | 2% of the market value of the property |
| Karnataka | ● For the transfer to a non-family member: 5% on the market value of the property + surcharge + cess and 1% registration fee ● For the transfer to a family member: Rs.1000 + surcharge + cess and fixed registration fee of Rs.500 |
| Andhra Pradesh | Stamp Duty: 2% f the market value of the property Registration Charges: 0.5% f the market value of the property |
| Tamil Nadu | Stamp Duty: 7% of the market value of the property Registration Fee: 1% of the market value of the property |
| Madhya Pradesh | ● For the transfer to a non-family member: 5% of the market value of the property ● For the transfer to a family member: 2.5% of the market value of the property |
| Telangana | Stamp Duty: 5% of the market value of the property Registration Fee: 0.5% of the market value of the property |
| Rajasthan | Stamp Duty: 6% of the market value of the property Registration Fee: 1% of the market value of the property |
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Note:
- To transfer utility connections in the name of the recipient, it is necessary to apply for mutation certificate after successful registration of the gift deed.
- The donor, after the execution of a gift deed, can not revoke the deed at a later stage, unless the reason for cancellation conforms to a specific clause in the deed.
- Upon the death of the recipient, the property will get transferred back to the donor if he/she is alive, else to the heirs of the recipient.
Also Read: Stamp Duty on Gift Deed
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