Introduction
Gifting property in India is a common practice among families, especially when parents transfer assets to children or spouses for succession planning. However, a property gift is not merely a personal decision; it is a legally regulated transaction governed by the Transfer of Property Act, 1882, and state-specific stamp laws.
A gift deed is a legally binding document that enables the transfer of ownership of immovable property from the donor to the recipient without any monetary consideration. In 2026, understanding the stamp duty on gift deeds, registration charges, and applicable exemptions is crucial to ensure the transaction is valid, enforceable, and dispute-free. Since stamp duty rates differ across states, awareness of local regulations becomes essential before proceeding with gift deed registration.
This guide explains gift deed registration in India, stamp duty calculation, state-wise charges, and important legal formalities every property owner should know.
Table of Contents
Stamp Duty on Gift Deeds in India 2026
Stamp duty is a mandatory tax levied by state governments on property transfers, including gift deeds. Without payment of appropriate stamp duty, a gift deed is considered invalid and cannot be registered.
In 2026, stamp duty on gift deeds generally ranges between 2% and 7% of the property’s market value, depending on the state where the property is located. Several states provide concessional rates or full exemptions when the gift is made to blood relatives such as parents, children, spouses, or siblings.
Key Points to Remember
- Stamp duty is usually lower for gifts compared to sale deeds.
- The rate depends on state laws, property type, and the relationship between donor and recipient.
- Many states encourage family transfers by offering stamp duty exemptions for relatives.
- Stamp duty must be paid before or at the time of registration.
How to Calculate Stamp Duty on Gift Deeds
Stamp duty on a gift deed is calculated based on the market value of the property, not the value mentioned by the parties. Market value is determined as per the state government’s guideline or circle rates.
Example
If a residential property worth ₹1 crore is gifted in Uttar Pradesh to a blood relative, and the applicable stamp duty rate is 2%, the donor must pay ₹2 lakhs as stamp duty. If the same property is gifted to a non-relative, the stamp duty may increase to 5%, amounting to ₹5 lakhs.
Steps to Calculate Stamp Duty
- Identify the current market value of the property.
- Check the state-wise stamp duty rate applicable to gift deeds.
- Apply the relevant percentage to the property value.
- Add the registration fee, which is usually 1% of the property value.
This calculation helps donors plan their finances and avoid last-minute issues during registration.
Who Pays Stamp Duty and Registration Charges?
In a gift deed transaction, the donor bears full responsibility for paying:
- Stamp duty on the gift deed
- Registration charges
The recipient is not legally required to pay any charges unless mutually agreed otherwise. This legal clarity ensures that ownership transfer happens without ambiguity and is officially recognized by the registration authorities.
Gift Deed Registration Process in India
Registration of a gift deed is mandatory under the Transfer of Property Act, 1882. An unregistered gift deed has no legal validity and cannot be used as proof of ownership.
Step-by-Step Registration Process
- Draft the Gift Deed
Include details of the donor, recipient, property description, relationship, and declaration of voluntary transfer. - Witness Signatures
The deed must be signed by the donor and attested by at least two witnesses. - Stamp Duty Payment
Pay stamp duty as per the applicable state rate through authorized channels. - Visit Sub-Registrar Office
Submit the deed at the local sub-registrar office where the property is located. - Registration & Certified Copy
The registrar verifies the documents, registers the deed, and issues a certified copy.
A registered gift deed provides the recipient with a clear and marketable title, safeguarding against future disputes or legal challenges.
State-Wise Stamp Duty & Registration Charges in India 2026
| State | Stamp Duty (Gift to Relatives) | Stamp Duty (Others) | Registration Fee |
|---|---|---|---|
| Uttar Pradesh | Exempt / ₹5,000 | 5% | 1% |
| Haryana | Exempt / 5% | 5% | 1% |
| Delhi | Exempt / 4% | 4% | 1% |
| Maharashtra | 3% | 3% | 1% |
| Gujarat | 3.5% | 3.5% | 1% |
| Rajasthan | 6% | 6% | 1% |
| Madhya Pradesh | 5% | 5% | 1% |
| Andhra Pradesh | 2% | 2% | 1% |
| Himachal Pradesh | 6% | 6% | 1% |
| Tamil Nadu | 7% | 7% | 1% |
| Karnataka | 5% | 5% | 1% |
| Punjab | 6% | 6% | 1% |
| Bihar | 5.7% (women) / 6% (men) | 6% | 1% |
| Jharkhand | 3% | 3% | 1% |
| Kerala | 2% | 2% | 1% |
| Chhattisgarh | 5% | 5% | 1% |
| Uttarakhand | 5% | 5% | 1% |
| Telangana | 0.5% (₹1,000–₹10,000) | 0.5% | 1% |
| Odisha | 3% | 3% | 1% |
Note: Stamp duty concessions or exemptions generally apply when the gift is made to blood relatives, subject to state-specific rules.
Conclusion
A gift deed is a legally recognized method of transferring property ownership in India, but it requires strict compliance with stamp duty and registration laws. In 2026, stamp duty rates continue to vary across states, with significant relief available for family transfers. Proper drafting, timely payment of charges, witness attestation, and registration are essential to ensure the transfer is legally valid and dispute-free.
Before proceeding, always verify state-specific stamp duty rates and seek professional guidance if required. For reliable insights on property ownership, transfers, and verified listings, visit Openplot.com.