Gift Deed in India: How to Transfer Property as a Gift
By Advocate Ganta Surya Kiran | 19 Law Chambers, Visakhapatnam | Property Law
A gift deed is a legal document through which a property owner voluntarily transfers ownership of immovable property to another person without any monetary consideration. Gift deeds are commonly used to transfer property to children, spouses, or relatives — but they must be properly executed and registered to be legally valid.
What is a Gift Deed?
Under Section 122 of the Transfer of Property Act, 1882 a gift is a transfer of existing, movable or immovable property made voluntarily and without consideration by one person (donor) to another (donee). For immovable property — the gift must be in writing (gift deed), signed by the donor, attested by two witnesses, and registered at the Sub-Registrar’s Office.
When to Use a Gift Deed
Transferring property to children during lifetime (instead of through will), transferring property to spouse, giving property to charity or religious institution, transferring property to avoid family disputes after death, and estate planning to reduce inheritance tax implications.
Gift Deed vs Will — Key Differences
A Gift Deed transfers property immediately during the donor’s lifetime the donee becomes owner from the date of registration. A Will transfers property only after the testator’s death and requires probate. Gift deeds are better when you want to ensure the specific person gets the property without disputes after your death. Wills are better when you want to retain use of the property during your lifetime.
How to Execute and Register a Gift Deed in AP
Step 1: Draft the gift deed clearly describing: donor and donee details, complete property description with survey number, consideration (nil in case of gift), and that it is a voluntary transfer without coercion.
Step 2: Calculate stamp duty in Andhra Pradesh, gift deeds to blood relatives (parents, children, spouse, siblings) attract lower stamp duty compared to gifts to non-relatives. Check current rates at registration.ap.gov.in.
Step 3: Both donor and donee must appear at the Sub-Registrar’s Office with original documents, identity proof, and two witnesses. The donee must accept the gift acceptance is essential for a valid gift.
Step 4: After registration update patta in the donee’s name at the Tahsildar office. Guide: Patta Mutation Andhra Pradesh.
Can a Gift Deed Be Cancelled?
A gift deed once registered is generally irrevocable the donor cannot take back the gifted property without the donee’s consent. Exception: if the gift was made under coercion, undue influence, or fraud the donor can file a suit to cancel the gift deed. Senior citizens who gift property expecting maintenance can get gift deeds revoked under the Maintenance and Welfare of Parents and Senior Citizens Act if maintenance is denied. Read: Senior Citizen Legal Rights India.
Frequently Asked Questions
Q: Is stamp duty payable on gift deed in AP?
Yes — stamp duty applies. For gifts to blood relatives reduced rates. For gifts to non-relatives full stamp duty (similar to sale deed rates). Check current rates at registration.ap.gov.in.
Q: Is a gift deed taxable for the recipient?
Gift from blood relatives is tax-exempt regardless of amount. Gift from non-relatives exceeding Rs 50,000 in a year is taxable as “Income from Other Sources.” Consult a tax adviser.
Q: Can gift deed be challenged in court?
Yes — by other legal heirs claiming the gift was made under undue influence, coercion, or that the donor lacked mental capacity. Full property guide: Property Documents Verification India. Free legal aid: NALSA — nalsa.gov.in.
Also read: Property Partition Suit India | Power of Attorney India Property | Hindu Succession Act Daughters Rights
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