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Gift Deed Template
A registered gift deed transfers property without consideration. Gifts to "relatives" under Income Tax Act 56(2) are tax-free for the recipient. Stamp duty is state-specific (typically 1-7%).
GIFT DEED
This Gift Deed is made and executed on this 2026-05-17 at Bangalore
BETWEEN
Ramesh Kumar, resident of 12, Sector 14, Gurgaon
hereinafter called "the DONOR",
AND
Priya Kumar (daughter), resident of 12, Sector 14, Gurgaon
hereinafter called "the DONEE".
WHEREAS the Donor is the absolute owner of the property described as:
Flat No. A-501, Sunshine Apartments, Bangalore measuring 1200 sq ft built-up
AND WHEREAS the Donor, out of natural love and affection for the Donee
who is the Donor's daughter, has decided to gift the said property
to the Donee, without any monetary consideration.
NOW THIS DEED WITNESSETH that the Donor hereby transfers, conveys and
gifts absolutely and forever the said property to the Donee, free
from all encumbrances. The Donor confirms that the gift has been
accepted by the Donee.
The Donee shall be entitled to enjoy the property as absolute owner
thereof, with all rights to sell, mortgage, lease and otherwise deal
with the same.
IN WITNESS WHEREOF the parties have signed this deed on the date and
place mentioned above.
_____________________________ _____________________________
Ramesh Kumar Priya Kumar
(DONOR) (DONEE)
Witness 1: ____________________ Signature: ____________________
Witness 2: ____________________ Signature: ____________________
NOTE: Register at the sub-registrar office. Stamp duty applies per
state schedule. For relatives under section 56(2), no income tax for
the donee. For non-relatives, gifts > ₹50,000 are taxable in the donee's
hands.How a gift deed works in India
A gift deed is a voluntary transfer of property without consideration, governed by sections 122–129 of the Transfer of Property Act. Gifts of immovable property must be in writing, signed by donor + 2 witnesses, and registered at the sub-registrar (section 17 Registration Act). Movable gifts (cash, jewellery, shares) need only delivery and a signed deed for tax clarity.
Tax treatment
Under section 56(2)(x), gifts from “relatives” — spouse, siblings, lineal ascendants/descendants, spouse's parents, and their spouses — are fully tax-free in the recipient's hands, regardless of value. Gifts from non-relatives are taxable as “income from other sources” only if total gifts in a year exceed ₹50,000. Exceptions: gifts on marriage, by will, or in contemplation of death are always tax-free even from non-relatives.
Stamp duty by use case
- Father gifting flat to son (Mumbai) — Maharashtra ₹200 fixed for blood relatives
- Brother gifting plot to sister (Karnataka) — 1% of market value, capped at ₹65,000
- Friend-to-friend property gift (Delhi) — 4-6% of circle rate, no relative concession
- Cash gift on wedding — no stamp duty, but document for IT trail if > ₹50,000
Once registered, a gift is irrevocable except by mutual consent. For wills (revocable until death), see our will template instead.
FAQ
Are gifts to brother / sister tax-free?
Yes — siblings are "specified relatives" under Income Tax Act 56(2)(x). Gifts (movable or immovable) are fully tax-free for the recipient regardless of value. Donor doesn't pay tax either.
Do I have to register a gift deed for movable property?
No — only immovable property requires registration. Cash, jewellery, shares can be gifted via a notarised gift deed or even a simple transfer letter. For tax records, document the gift clearly.
Can I take back a gift?
Generally no, once accepted and possession transferred. Exceptions: deed mentions revocation conditions, or undue influence/fraud is proven in court.