A gift deed is a legally binding document used when an individual (donor) transfers property to another person (donee) out of love and affection, without any monetary consideration. The property could be:

• Residential property

• Commercial property

• Agricultural land

• Vehicles or jewellery

• Any movable or immovable asset

To make a gift deed legally enforceable, it must be registered at the local sub-registrar’s office as per the Registration Act of 1908.

DOWNLOAD SAMPLE GIFT DEED DRAFT:

What Is a Gift Deed?

Is Registration of a Gift Deed Mandatory?

Yes, as per Indian law, gift deed registration is compulsory when the asset involved is immovable, such as land or a house. Unregistered gift deeds, especially for real estate, are not legally valid and can be challenged in court.

• Legal Proof of Transfer: A registered gift deed ensures ownership transfer is legally valid and documented.

• Avoids Future Disputes: It protects both parties in case of family or inheritance-related conflicts.

• Tax Exemptions: Gifts received from specified relatives are exempt under the Income Tax Act.

• No Capital Gains Tax: The donor is not liable to pay capital gains tax on the gifted property.

Benefits of Registering a Gift Deed

Documents Required for Gift Deed Registration

• Original gift deed document

• ID and address proof of donor and donee (PAN card, Aadhaar, etc.)

• PAN card of both parties (mandatory for property transactions above ₹10 lakh)

• Property documents (title deed, previous sale deed, etc.)

• Encumbrance certificate

• Witness ID proofs

• Photographs of both parties

Step-by-Step Process to Register a Gift Deed in India (2025)

Here is a simplified guide to help you register a gift deed:

1. Drafting the Gift Deed
   A gift deed must be drafted on stamp paper, clearly mentioning the details of the property, the donor, and the donee. You can consult a property lawyer to ensure correct language and legal validity.

2. Execution of the Deed
   The gift deed must be signed by the donor and accepted by the donee during the donor’s lifetime. It must be attested by at least two witnesses.

3. Valuation of Property
   The market value of the property must be assessed as it determines the applicable stamp duty and registration charges.

4. Payment of Stamp Duty
   Pay the applicable stamp duty and registration charges, which differ across states. Some states offer stamp duty concessions when gifting property to family members.

5. Visit the Sub-Registrar Office
   Both parties must appear at the local sub-registrar office with original documents and witnesses. The gift deed is officially registered once verified.

The stamp duty for gift deeds varies by state and by the relationship between donor and donee. Here's a quick overview:

Stamp Duty & Registration Charges for Gift Deed (2025)

Always check the latest rates applicable in your state or consult a local property expert.

Under Section 56(2)(x) of the Income Tax Act, gifts above ₹50,000 are taxable unless received from a relative. Here’s how tax on gift deeds is handled:

• No Tax if the gift is from a blood relative like parents, spouse, siblings, children, etc.

• Taxable as ‘Income from Other Sources’ if the gift is from a non-relative and its value exceeds ₹50,000.

• No Capital Gains Tax for the donor at the time of gifting, but the donee may be liable when they sell the property later.

Tax Implications of Gifted Property

Can a Gift Deed Be Revoked?

Generally, gift deeds are irrevocable once registered, unless:

• There is a clause in the deed that allows for revocation under certain conditions.

• The transfer was made through coercion or fraud and can be proven legally.

Hence, donors should be cautious before proceeding with registration.

Difference Between Gift Deed and Will

A registered gift deed offers a legally secure, tax-compliant, and efficient way of transferring property or assets in India. Whether you're gifting property to a family member or someone else, it's crucial to follow proper registration steps, understand stamp duty norms, and be aware of tax liabilities.

If you're looking for expert help on property transfer, gift deed registration, or stamp duty consultation, feel free to reach out to The Fortune Realty Group (TFRG)—your trusted partner in real estate guidance for 2025 and beyond.

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Need professional help with Gift Deed Registration?

We at TFRG specialize in property transfers, legal registrations, and real estate advisory in Chattarpur, Manesar, Gurgaon, and South Delhi.