Key takeaways
A gift of immovable property must be made by a registered gift deed, signed by the donor and attested by two witnesses.
The gift must be accepted by the recipient during the donor's lifetime.
Many states, including Punjab, offer concessional stamp duty on gifts between specified close relatives; check current notifications.
Gifts from specified relatives are generally exempt from income tax for the recipient.

Parents often gift property to children, or spouses to each other. A gift deed is the legal tool for this. Done correctly, it is clean and final.

Legal requirements

Under the Transfer of Property Act, 1882:

The gift must be voluntary and without consideration.
It must be made by a registered instrument signed by or on behalf of the donor and attested by at least two witnesses.
The donee (recipient) must accept it during the donor's lifetime and while the donor can still give.

See why documents must be registered.

Stamp duty

Stamp duty on gift deeds is set by each state. Many states offer lower duty for gifts between close relatives such as spouses, parents, children, grandchildren and siblings. Punjab has notified concessions for certain blood relations. Check the current rates with the Sub-Registrar. See stamp duty in Punjab.

Income tax

Situation	Tax for recipient
Gift from a specified relative	Exempt
Gift on marriage	Exempt
Gift by will or inheritance	Exempt
Gift from non-relative above threshold	Taxable as income (stamp duty value)

When the recipient later sells, capital gains are computed using the donor's cost and holding period. See capital gains tax.

Clubbing rules may apply if you gift property to a spouse, meaning income from it may be taxed in your hands.

Can a gift be revoked?

A registered gift generally cannot be revoked, except in limited situations, such as where the parties agreed it would be revocable on a specified event not dependent on the donor's will, or on grounds that would invalidate a contract. Under the Maintenance and Welfare of Parents and Senior Citizens Act, 2007, a gift by a senior citizen made on the condition of basic amenities and care may be declared void by a tribunal if the condition is not met.

Process

Draft the gift deed with property details and relationship.
Pay stamp duty through e-stamp.
Register at the Sub-Registrar office with the donor, donee and two witnesses.
Update mutation, authority and municipal records.

Gift or will?

A gift transfers ownership now; a will transfers it after death and can be changed. Consider your family situation and take legal advice. See inheriting property.

Frequently asked questions

Is a registered gift deed mandatory for property?

Yes. A gift of immovable property must be made through a registered deed signed by the donor and attested by two witnesses.

Is gifted property taxable for the recipient?

Gifts from specified relatives are exempt. Gifts from non-relatives above the threshold are taxable as income.

Can parents take back a gifted property?

Generally a gift cannot be revoked, but a senior citizen's gift made on the condition of care may be declared void under the senior citizens' maintenance law if the condition is not met.

What is the stamp duty on gift deeds in Punjab?

Punjab offers concessions for gifts between certain close relatives. Check the current rates with the Sub-Registrar or official portal.

Related HomeAcross guides

Official sources and further reading

This guide is general information, not legal, tax or financial advice. Rules, rates and procedures change; confirm current requirements with the relevant authority or a qualified professional before you act. Read our editorial policy.

Gift Deed for Property in India: Process, Stamp Duty and Tax

Join the conversation