Gift Deed for Property: Components, Acceptance and Registration

A gift deed transfers property to someone without payment. Under Section 122 of the Transfer of Property Act, 1882, the person receiving the gift must accept it while the giver is alive. A gift of land, a flat or a house must be made by a registered deed signed by the giver and attested by at least two witnesses.

Key facts

What makes a gift valid

Section 122 sets four conditions. The property must already exist, since a gift of future property is void under Section 124. The transfer must be voluntary. No payment can be involved. The donee, or someone on the donee’s behalf, must accept it.

Acceptance must happen while the donor is alive and still able to give. A donee often shows acceptance by signing the deed, taking possession or having the property transferred into their name. If a gift is made to several people and one refuses, the gift fails only for that person’s share (Section 125).

Section 128 adds a point that people often miss. If the gift covers the donor’s whole property, the donee becomes liable for the donor’s debts, up to the value of what was gifted.

What a gift deed contains

Stamp duty, registration fee and documents

Stamp duty on gift deeds is a state subject, and several states charge less when the donee is a close relative. The table shows the states we checked on 16 September 2026. Other states differ.

In Tamil Nadu, the Inspector General of Registration’s fee table lists a separate, cheaper settlement deed for transfers to family members: 1% stamp duty capped at ₹40,000 and 1% registration fee capped at ₹10,000 (caps raised in July 2023). Delhi requires the property to be valued by an approved valuer for a gift deed. Our stamp duty by state page covers other states, and the stamp duty calculator gives an estimate.

At the sub-registrar’s office, you will usually need:

• The gift deed on stamp paper, or with duty paid online.
• Original identity proof of the donor, the donee and two witnesses.
• The donor’s title document, such as the earlier sale deed.
• Recent property tax receipt and, where the office asks, proof of relationship to claim a family rate.

How to register a gift deed

1. Draft the deed with the property schedule and the acceptance clause.
2. Check the market value (circle rate) and the family rate your state allows.
3. Pay the stamp duty and registration fee online or buy e-stamp paper.
4. Book an appointment at the sub-registrar office where the property is located.
5. Donor, donee and two witnesses attend with original identity documents.
6. The sub-registrar records photographs and fingerprints and registers the deed.
7. Collect the registered deed and apply for mutation in the donee’s name.

Present the deed within four months of signing, as Section 23 of the Registration Act requires.

Gifts of cash and movable property

Money, jewellery or shares can be gifted by simple delivery. A deed is optional. Still, a written record helps if the tax department asks where the money came from. Pay by bank transfer or cheque so the trail is clear, and keep a signed letter from the donor naming the amount, date and relationship.

A formal gift deed for movable property can attract stamp duty. Maharashtra’s Article 34 covers gifts of movable property as well, so check the duty before you sign a deed for a cash gift.

Can a gift deed be revoked?

Usually not. Section 126 allows revocation in only two situations:

• The donor and donee agreed that the gift would be suspended or revoked if a specified event happens, and that event does not depend on the donor’s will.
• The gift could be set aside the way a contract can, for example because of fraud, coercion or undue influence.

A clause letting the donor take the gift back at will is void. If you want to keep control until your death, a will may suit you better; see our guide to wills and succession. Senior citizens have one more route. Under Section 23 of the Maintenance and Welfare of Parents and Senior Citizens Act, 2007, a Tribunal can declare a gift void if it was made on condition that the donee would provide basic amenities and the donee fails to do so.

Tax on gifts: relatives are exempt

From 1 April 2026, gifts are taxed under Section 92 of the Income-tax Act, 2025, which carries forward Section 56(2)(x) of the 1961 Act. The receiver pays the tax, not the giver.

• Gifts from a relative are fully exempt, whatever the amount. Relatives include your spouse, siblings, your spouse’s siblings, your parents’ siblings, lineal ascendants and descendants of you and your spouse, and the spouses of these people.
• Gifts from non-relatives are taxable if their total value in the year exceeds ₹50,000.
• Gifts received on your marriage and property received by inheritance are exempt.

Cousins do not count as relatives. For a large gift from outside the family, or a gift of land with an unclear title, a tax adviser or property lawyer can check the position first.

Frequently asked questions

Is registration compulsory for a gift deed?

Yes, for immovable property. Section 17(1)(a) of the Registration Act, 1908 makes registration compulsory for gifts of immovable property.

What is the stamp duty on a gift deed in blood relation?

It depends on the state. In Maharashtra, a home or farm land gifted to a spouse, child or grandchild costs ₹200. Delhi charges its normal 6% or 4% rate.

Can a gift deed be cancelled after registration?

Only in the cases allowed by Section 126, or by a senior citizen through the Tribunal under the 2007 Act. A one-sided cancellation deed does not undo a valid gift.

Is a gift deed needed for cash gifts?

No. Money can be gifted by delivery. A bank transfer and a signed letter from the donor are useful proof for tax purposes.

Is a gift from my parents taxable?

No. Parents are relatives, so the gift is exempt from income tax for you, whatever the amount.

What happens if the donee dies before accepting?

The gift is void under Section 122, and the property stays with the donor.

Sources

• The Transfer of Property Act, 1882 (Sections 122 to 129) — India Code (checked 16 Sep 2026)
• The Registration Act, 1908 — IGR Maharashtra (checked 16 Sep 2026)
• Property registration charges — Revenue Department, Government of NCT of Delhi (checked 16 Sep 2026)
• Schedule I, Maharashtra Stamp Act (Article 34) — IGR Maharashtra (checked 16 Sep 2026)
• Table of registration fees (Note 59) — IGR Maharashtra (checked 16 Sep 2026)
• Stamps and registration fee table, Inspector General of Registration — Tamil Nadu Single Window Portal (checked 16 Sep 2026)
• Section 92, Income-tax Act, 2025 — Income Tax Department (checked 16 Sep 2026)
• Taxation of gifts from family — Taxmann (checked 16 Sep 2026)
• Gift tax under Section 92 from tax year 2026-27 — TaxGarden (checked 16 Sep 2026)
• Section 23, Maintenance and Welfare of Parents and Senior Citizens Act, 2007 — Indian Kanoon (checked 16 Sep 2026)