What is Gift Deed?

What is Gift Deed?

In legal terms, a gift is considered as the transfer of certain existing movable or immovable property by one person to another. It is defined under Section 122 of the Transfer of Property Act, 1882 as “the transfer of certain existing moveable or immoveable property made voluntarily and without consideration, by one person called the donor, to another, called the donee, and accepted by or on behalf of the donee.” The transfer of such property shall be accepted by the donee during the lifetime of the donor and while he is still capable of giving. If the donee dies before the acceptance of the gift by the donor, the gift is considered as void.

The transfer of such movable or immovable property in the form of a gift is carried out with the help of a legal document or an instrument called the ‘gift deed’. The gift deed contains the name of the donor and the donee, details of the property to be gifted, the clause of transfer of property, acceptance of the gift by the donee, rights of the donee and other such relevant information.

Gift Deed Format

For a gift deed to be executed, it should be created in a proper format. Its contains the following recitals:

1.    Name, Date, and Place- The gift deed shall contain the date and the day on which it is executed along with the place where it will be executed. The deed shall also contain the name, age, father’s name, occupation and place of residence of both the parties to the deed i.e., donor and the donee.

2.    Details of the property- All the details of the property to be transferred as a gift shall be mentioned in this deed. In the case of immovable property, the details may include the location of the property, its area, etc. It should be mentioned in the deed that the donor is in the possession of the property to be gifted and that he holds the title of the immovable property. The property shall be in existence at the time of gifting. One can gift a property that was present in the past or will be present in the future.

3.    No Consideration- The donor shall make the gift without any consideration which means that he shall receive no money or something of value from the donee in return for the transfer of property. The donor shall make the gift out of love and affection for the donee. There should be a relationship between the donor and the donee.

4.    Free Will- The deed shall state the donor has made the gift voluntarily, with free consent and not under undue influence, coercion, mistake or fraud. 

5.    Rights and Liabilities- The gift deed states the rights and liabilities of the donor and the donee. The donee has the right to own, possess, sell, mortgage, lease or further transfer the gifted property. He shall avail of all the liberties and benefits concerning the gifted property. The donor holds no right over the property once this deed is executed. 

6.    Acceptance by the donee- The gift shall be accepted by the donee during the lifetime of the donor. If the gift is not accepted during the lifetime of the donor, it shall be void.

7.    Payment of requisite fee- The gift shall contain a clause stating that the charges for executing the deed are to be borne by the donor or the donee or both.

8.    Execution of delivery- The deed shall state the mode of delivery of the property to the donee by the donor. 

Any other clauses as demanded by the parties can be included in the gift deed.

Stamp Duty on Gift Deed

It is necessary to pay stamp duty on this deed. The stamp duty on gift deed is different for all states and has been given below. 


For men- 6% of the market value of the property.

For women- 4%  of the market value of the property.

Punjab5% of the Consideration amount + 1 % of SIC (Social Infrastructure Cess)
Haryana3% in Rural areas and @ 5% in urban areas.


Gift Deed Registration

Sec 17(a) of the Indian Registration Act, 1908 states that it is necessary to register instruments of gifts of the immovable property i.e., gift deeds. To register this deed, it shall be presented at the registration office by the parties executing the deed, a representative of the parties or such person who has been appointed as the agent or representative duly authorized by Power of attorney. Parties registering the Gift deed shall affix their passport size photographs and fingerprints. Section 123 of the Transfer of Property Act, 1908 also provides that to execute a gift deed of immovable property, it shall be registered, signed by or on behalf of the donor, and attested by at least two witnesses.

Gift Deed in India

There are different charges for registration of gift deed in India. Each state levies different registration charges.

Delhi1% of the market value of the immovable property along with Rs. 100 pasting charges
Punjab    1 % of the  market value of the immovable property (Max. Rs. 2 lac ) 



The gift is the transfer of a property, movable or immovable, from the donor to the donee. The transfer of a property as a gift should be done with the help of an instrument or a legal document known as a gift deed. To execute this deed, it shall be registered.


eStartIndia Team

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