Gift Deed Stamp Duty in India (2026): State-Wise Rates and Blood-Relative Rules

When a parent transfers a flat to their child in Maharashtra, they pay Rs 200 in stamp duty. When an uncle gifts the same flat to a nephew in the same city, the stamp duty could be 3% of market value - potentially several lakh rupees. This is the defining feature of India's gift deed stamp duty framework: a two-tier system that draws a sharp legal boundary between gifts to blood relatives and gifts to anyone else, resulting in one of the largest cost differentials in Indian property law.

Gift deeds are used extensively in India for estate planning, family property consolidation, and as an alternative to a will for transferring immovable property during one's lifetime. The appeal is clear - a gift can transfer clear title without probate, and in most states the stamp duty cost to blood relatives is a fraction of what a comparable sale would attract. But the legal framework is stringent: the gift deed must be on proper stamp paper, must be executed voluntarily without consideration, and - for immovable property - is compulsorily required to be registered under Section 17 of the Registration Act, 1908. An unregistered gift deed of immovable property is void.

This guide covers everything a prospective donor or donee needs to know: what a gift deed is, when stamp duty applies, state-wise rates and blood-relative concessions, the income-tax treatment, required documents, and how the process compares to making a will. For the broader context of how stamp duty is calculated in India, see the companion article on what stamp duty is and how it works.

What Is a Gift Deed?

A gift deed is a legal document by which a person (the donor) voluntarily transfers ownership of property - movable or immovable - to another person (the donee) without any payment or exchange of value. The Transfer of Property Act, 1882 governs gifts of immovable property in India; Section 122 defines a gift as a transfer of existing property made voluntarily and without consideration, and Section 123 requires that a gift of immovable property must be effected by a registered instrument signed by or on behalf of the donor and attested by at least two witnesses.

The essential elements of a valid gift are: the property must be clearly identified; the donor must intend to make the gift freely and without coercion; the donee must accept the gift during the donor's lifetime; and for immovable property, the transfer must be completed by registration. A gift of immovable property that is not registered is invalid under the Transfer of Property Act - no amount of physical possession or oral acknowledgement can substitute for a registered deed.

Is a Gift Deed Compulsorily Registered?

Section 17, Registration Act, 1908

Section 17(1)(a) of the Registration Act, 1908 makes registration compulsory for "instruments of gift of immovable property." There is no monetary threshold (unlike sale deeds, which require compulsory registration only if property value exceeds Rs 100 under the Act). Every gift of immovable property - regardless of value, even a small agricultural plot - must be registered at the Sub-Registrar's office in the jurisdiction where the property is located.

This compulsory registration requirement applies uniformly across all states. A gift deed executed on stamp paper but not presented for registration at the Sub-Registrar's office has no legal force. The donee will have no valid title; the property will still be legally owned by the donor.

Why This Matters for Stamp Duty

Because every gift of immovable property requires both stamping and registration, the transaction cost has two components: stamp duty (on the gift deed instrument) and the registration fee (typically 1% of the property's market value or government minimum value). The stamp duty rates discussed in this article are for the deed itself. The registration fee is additional and separate.

The Two-Tier Pattern: Blood Relatives vs Others

The Concessional Rate for Family Transfers

Most Indian states have enacted a concessional stamp duty for gift deeds where the donee is a blood relative or defined family member of the donor. The rationale is to encourage intra-family property consolidation, facilitate succession planning without probate, and reduce the cost of wealth transfer within families. The concession is almost always a flat rupee amount (Rs 200, Rs 500, Rs 5,000) rather than a percentage, making the saving very large on high-value properties.

For example: a parent in Maharashtra gifts a Mumbai flat worth Rs 1.5 crore to their adult child. Standard stamp duty would be 3% of Rs 1.5 crore = Rs 4.5 lakh. Under the blood-relative concession (Article 34, Maharashtra Stamp Act 2017), the stamp duty is Rs 200. The saving is Rs 4,49,800 - over 99% of what the duty would otherwise be. This is not a minor relief; it is a near-total exemption.

Full Ad-Valorem to Non-Relatives

When the donee is not a defined relative - for instance, a gift to a friend, a business partner, a charity, or a distant cousin not within the defined family circle - most states apply the same stamp duty rate as a sale. This can be 3-7% of market value depending on the state. The logic is that a gift to a non-relative is economically similar to a sale (it transfers property outside the family without consideration), so it should attract the same revenue-generation rate.

State-Wise Gift Deed Stamp Duty Rates (2026)

The following table presents stamp duty on gift deeds across the major states, distinguishing between transfers to blood relatives and transfers to non-relatives. Rates are general information; confirm with the state's official registration portal before executing a gift deed.

Note: rates are general information as of 2026. Stamp duty is a state subject and rates change. Always verify with the relevant state's official registration portal before executing a gift deed.

Maharashtra: The Rs 200 Provision in Detail

Article 34 of the Maharashtra Stamp Act, 2017

Article 34 of the Maharashtra Stamp Act, 2017 is the provision that makes Maharashtra's gift deed concession the most cited in India. It sets stamp duty on a gift deed at Rs 200 when the property being gifted is residential or agricultural immovable property, and the donee is any of: a husband, wife, son, daughter, grandson, granddaughter, or son's widow of the donor.

The Rs 200 rate does not apply to commercial property (offices, shops, industrial units) - those attract the standard 3% rate even for blood relatives. It also does not apply to a gift to a sibling, cousin, or any relative beyond the defined list. A parent gifting to an adopted child would fall under the standard rate; a grandparent gifting to a granddaughter's husband would not qualify. The exact relationship matters.

The 15-Year Lock-In: Removed in 2026

Until recently, Maharashtra imposed a condition on properties received via gift deed: a donee who received a residential property under the Rs 200 stamp duty concession could not sell or transfer it for 15 years without losing the concession benefit and paying differential stamp duty. This "15-year lock-in" was removed by the Maharashtra government in 2026, making the Rs 200 concession significantly more attractive for estate planners and property investors who may want to sell the property later.

Gift Deed vs Sale Deed: The Rs 200 vs 3% Difference

To illustrate the impact: a parent in Mumbai gifts their flat valued at Rs 2 crore to their daughter. Stamp duty under Article 34 = Rs 200. Registration charge = Rs 30,000 (capped). Total transaction cost = Rs 30,200. Had the same transfer been structured as a sale at Rs 1 (a nominal sale, which is not recommended and treated as a gift in substance), the stamp duty alone would be 3-4% of the Rs 2 crore Ready Reckoner value = Rs 6-8 lakh plus registration. The gift deed route is overwhelmingly cheaper for genuine intra-family transfers, but it is subject to income-tax analysis (see below).

Uttar Pradesh: Rs 5,000 Flat on Blood-Relative Gifts

Uttar Pradesh replaced its earlier ad-valorem stamp duty on family gift deeds with a flat Rs 5,000 duty applicable to transfers to a defined list of blood relatives: spouse, son, daughter, father, mother, brother, sister, and grandparent. This flat rate applies regardless of the property's value - whether the property is worth Rs 50 lakh or Rs 5 crore, the stamp duty is Rs 5,000. UP's blood-relative list is slightly broader than Maharashtra's; it includes siblings (not in Maharashtra's Article 34 list).

Transfers to non-relatives in UP attract the full sale deed rate of 7% for male donees and 6% for female donees, plus 1% registration. The UP IGRS portal at igrsup.gov.in provides the online appointment and stamp duty payment service for UP gift deed registrations.

Karnataka: Family Gifts at Rs 1,000-5,000

Karnataka's blood-relative gift deed concession is more graduated than Maharashtra's. Stamp duty for gifts to immediate family members (spouse, parents, children) is in the range of Rs 1,000-5,000 depending on the property value, rather than a single flat Rs 200 rate. This is still significantly cheaper than the standard Karnataka stamp duty slab (2-5% depending on value), but less dramatic in its savings than the Maharashtra or UP flat rates. Karnataka also has no gender-based concession in stamp duty for gift deeds - the same rate applies regardless of whether the donee is male or female.

The registration charge in Karnataka is now 2% (following the August 2025 doubling), making Karnataka's total transaction cost for gift deeds higher than it was before that change. For a detailed breakdown of Karnataka gift deed rules, see the article on stamp duty in Karnataka.

Delhi: No Flat Blood-Relative Concession

Delhi is notable for not offering a blood-relative stamp duty concession on gift deeds. Instead, the standard sale deed rates apply: 6% for a male donee and 4% for a female donee (plus 1% registration), based on the circle rate of the property. A parent gifting a Delhi flat worth Rs 1 crore to a son will pay approximately Rs 6 lakh in stamp duty and Rs 1 lakh registration - Rs 7 lakh total - compared to Rs 200 for the same transaction in Maharashtra.

This makes Delhi one of the most expensive states for intra-family property gifts and has driven a secondary planning consideration: if a property is held in Delhi and the owner wishes to transfer it to family members cost-effectively, a will (which takes effect at death without stamp duty on the inheritance) or a family settlement deed may be more tax-efficient than a gift deed during the owner's lifetime.

Who Counts as a "Blood Relative"?

The Defined Lists Vary by State

Each state Stamp Act defines its own category of family members eligible for the concessional gift deed stamp duty. There is no uniform national definition. Common inclusions across most states are: spouse, son, daughter, father, mother, and grandchildren. Less consistently included are: siblings, son's wife (daughter-in-law), daughter's husband (son-in-law), cousins, and adopted children.

Maharashtra's Article 34 list specifically includes a "son's widow" (widowed daughter-in-law) but does not mention siblings. UP's list includes siblings. Karnataka's definition is typically limited to the nuclear family unit. Buyers should confirm the exact defined list in their state's stamp act and not assume that a relationship qualifying in one state will qualify in another.

Adoption and Step-Relationships

Adopted children are treated as natural children for most legal purposes in India under the Hindu Adoptions and Maintenance Act, 1956. Most state stamp acts do not explicitly exclude adopted children from the family-gift concession, and in practice sub-registrars typically accept valid adoption documentation as satisfying the "son" or "daughter" relationship. Step-children (where there is no formal adoption) are in a grey area; the safer course is to verify with the Sub-Registrar's office before assuming the concession applies.

Income-Tax Treatment of Gift Deeds

Gifts from Relatives: Exempt from Tax

Section 56(2)(x) of the Income Tax Act, 1961 deals with "income from other sources" and includes gifts of immovable property within its ambit. The provision establishes two key rules. First, gifts of immovable property from a "relative" (as defined in the Income Tax Act) are fully exempt from income tax in the hands of the donee, regardless of the property's value. Second, gifts of immovable property from a non-relative are taxable in the donee's hands if the stamp duty value of the property exceeds Rs 50,000; the entire stamp duty value (not just the excess over Rs 50,000) is taxable as income from other sources.

"Where any immovable property is received without consideration and the stamp duty value of such property exceeds fifty thousand rupees, the stamp duty value of such property shall be chargeable to income-tax under the head 'Income from other sources'." (Income Tax Act, 1961, Section 56(2)(x)(b), as applicable to non-relatives.)

The Income Tax Act's Definition of "Relative"

The Income Tax Act defines "relative" for the purpose of Section 56(2)(x) more broadly than some state stamp acts. The IT Act's definition of "relative" for an individual includes: spouse, siblings of the individual, siblings of the spouse, lineal ascendants and descendants of the individual, lineal ascendants and descendants of the spouse, and spouses of any of the above. Notably, this is broader than Maharashtra's Article 34 definition (which does not include siblings).

This creates an important asymmetry: a parent gifting to a sibling in Maharashtra would pay 3% stamp duty (no concession under Article 34), but the sibling-donee would pay no income tax (since siblings are within the IT Act's definition of relative). Conversely, a gift to a friend would attract full ad-valorem stamp duty AND be fully taxable in the friend's hands as income from other sources. The income-tax and stamp-duty treatment need to be evaluated jointly, not separately.

Capital Gains on Sale of Gifted Property

When the donee subsequently sells the gifted property, capital gains tax is calculated on the difference between the sale price and the property's original cost to the donor (not the gift date value). The holding period for LTCG purposes includes the donor's holding period. The property's cost basis to the donee is the actual cost for which the donor acquired the property (not the market value at the time of gift), as per Section 49(1) of the Income Tax Act. This is an important long-term planning consideration: a donee who receives a property gifted by a donor who bought it cheaply decades ago will have a large capital gain when they sell, even if the gift deed itself attracted minimal stamp duty.

How to Execute a Gift Deed: Documents and Process

Required Documents

The documentation required for a gift deed registration in most states includes: the draft gift deed on stamp paper (or e-stamp certificate) of the correct denomination; proof of identity and address for donor and donee (Aadhaar, PAN, passport); passport-size photographs of donor, donee, and two witnesses; property title documents (sale deed, khata/patta, encumbrance certificate); the property's circle/guidance/ready reckoner value as computed by the Sub-Registrar's office; and a relationship certificate or family document if claiming the blood-relative concession (birth certificate, marriage certificate, or other proof as required by the Sub-Registrar).

All parties - donor, donee, and two witnesses - must be present at the Sub-Registrar's office for registration. Some states now allow online appointment booking via the state registration portal; biometric verification is done in person. The Sub-Registrar typically completes registration in a single day if all documents are in order.

Step-by-Step Process

1. Draft the gift deed: Engage a registered document writer or advocate. The deed must describe the property precisely (survey number, CTS number, address), state the relationship between donor and donee, confirm voluntary transfer without consideration, and include acceptance by the donee.
2. Determine stamp duty: Apply the relevant rate for the state and relationship category. Obtain the government minimum value (Ready Reckoner/circle rate/guidance value) from the state portal. Calculate the duty on the higher of the property's market value or government minimum value - although for blood-relative gift deeds with flat rates like Rs 200 or Rs 5,000, the flat rate applies regardless of market value.
3. Pay stamp duty: Purchase e-stamp paper of the correct denomination via the SHCIL portal at shcilestamp.com or the state portal. Alternatively, obtain physical non-judicial stamp paper from a licensed vendor (in states that still allow this).
4. Execute the deed: Have the donor sign the deed on the stamp paper, witnessed by two persons. The donee accepts in writing in the deed or by a separate acceptance letter.
5. Register at Sub-Registrar's office: Present the executed deed with all documents and pay the registration fee. Both parties and witnesses must attend. After verification and biometric confirmation, the Sub-Registrar records the deed and returns a certified copy.
6. Mutation: Apply for mutation (transfer of property records) at the local municipal office or revenue authority after registration to update the revenue and property tax records in the donee's name.

Can a Gift Deed Be Revoked?

The General Rule: Irrevocable

Section 126 of the Transfer of Property Act, 1882 provides that a gift cannot be revoked by the donor alone once it has been accepted by the donee - and for immovable property, acceptance is evidenced by the donee taking possession, which typically accompanies registration. A completed gift deed is irrevocable unless both the donor and donee mutually agree to cancel it, or unless the deed itself contains a specific condition of revocation that has been triggered.

Conditions That Permit Revocation

Section 126 does permit revocation if the gift was made under fraud, misrepresentation, or undue influence - grounds that require the donor to approach a court. A donor can also include a revocation condition in the gift deed itself - for instance, that the gift is revoked if the donee predeceases the donor. But a general right to revoke at will, without a specified trigger, is not legally valid. Courts have consistently held that a "gift deed" with an unconditional revocation clause is not a valid gift at all; it is more akin to a revocable trust or a testamentary instrument, which requires different formalities.

The practical implication: a parent who gifts property to a child but wants to retain control or a right to receive income from it should consider structuring the arrangement as a settlement with conditions, rather than an outright gift deed. Once a clean gift deed is registered, the donor has no right to ask for the property back, regardless of how the relationship develops.

Gift Deed vs Will: Which Is Better?

Immediate Transfer vs Deferred Transfer

A will takes effect only on the testator's death and must be probated in some jurisdictions before it can be acted upon. A gift deed transfers ownership immediately upon registration and does not require probate. For families where clarity of ownership during the donor's lifetime is important - for instance, where the property is the donee's primary residence - a gift deed provides that clarity immediately.

However, a will is revocable at any time by the testator (by writing a new will), while a gift deed, once registered, is irrevocable. This flexibility makes a will better suited for situations where the donor is uncertain about the final distribution or where circumstances may change. The donor also bears no stamp duty cost when making a will; stamp duty is paid by the beneficiary who registers the inherited property after the testator's death, and in most states the duty on inheritance from a relative is concessional.

Tax Efficiency Comparison

A key difference is capital gains treatment. When a property is received by inheritance (via will or succession), the cost basis to the heir is the property's market value on the date of death, not the original purchase price. This stepped-up basis can significantly reduce capital gains tax if the heir sells the property. A gift deed does not provide a stepped-up basis - the donee inherits the donor's original cost (Section 49(1), Income Tax Act). For highly appreciated properties, a will can be more tax-efficient than a gift deed for the eventual capital gains position.

Key Takeaways

• Every gift of immovable property must be registered under Section 17, Registration Act, 1908 - an unregistered gift deed is void.
• Maharashtra charges just Rs 200 stamp duty on residential/agricultural gifts to spouse, children, grandchildren, or son's widow (Article 34, Maharashtra Stamp Act 2017) - with the 15-year resale lock-in removed in 2026.
• UP charges Rs 5,000 flat on blood-relative gift deeds (spouse, child, parent, sibling, grandparent); Delhi has no blood-relative concession and applies the standard sale deed rate of 4-6%.
• Gifts from relatives as defined by Section 56(2)(x) Income Tax Act are fully exempt from income tax in the donee's hands; gifts from non-relatives are taxable above Rs 50,000.
• The Income Tax Act's definition of "relative" (includes siblings) is broader than some state stamp act concession lists (e.g., Maharashtra's Article 34 does not include siblings).
• Capital gains on subsequent sale of gifted property use the donor's original purchase price as cost basis - not the market value at the time of gift.
• A registered gift deed is irrevocable absent mutual consent or a specific contractual condition; a will is revocable at any time.
• All rates are general information only. Always verify with the relevant state portal and consult an advocate before executing a gift deed.

Looking Ahead: Gift Deeds in India's Evolving Property Market

India's gift deed framework has become a central tool in urban estate planning, particularly in cities where property values have appreciated dramatically over the last two decades. In Mumbai and Bengaluru, where flats have multiplied in value 10-20x since the 1990s, the tax cost of unwinding wealth accumulation is material. The Maharashtra Rs 200 flat duty, introduced in its current form under the 2017 stamp act, has made intra-family transfers almost frictionless from a stamp duty perspective.

The removal of Maharashtra's 15-year resale lock-in in 2026 is a significant policy signal: the state government has recognised that penalising the resale of gifted properties was creating illiquid family holdings and distorting market supply. Other states may follow with similar relaxations.

On the income-tax side, the Budget 2026 (Union Budget presented February 2026) did not change the Section 56(2)(x) framework, meaning the relative/non-relative distinction and the Rs 50,000 threshold for non-relative gifts remain in place. Estate planning practitioners continue to recommend the gift deed as the preferred mechanism for property transfer to defined relatives where the donor wants certainty of transfer during their lifetime - provided the stamp duty treatment, income-tax analysis, and capital gains implications are all evaluated together. For the supporting documents and stamp paper requirements, see the guide to stamp paper in India and for the full state-level context, the article on stamp duty in Maharashtra.