What Is a Gift Deed and When Is It Used

A gift deed is a legal document that transfers ownership of an asset (such as land, a house, or a vehicle) from one person (the donor) to another (the donee) without any payment or consideration. It’s commonly used when property owners want to give assets to family or loved ones. Unlike a simple verbal promise, a registered gift deed provides clear proof of ownership transfer and helps prevent future disputes. Importantly, a gift deed takes effect immediately upon execution and registration – the property moves to the donee as soon as the deed is signed and registered. (In contrast, a Will transfers ownership only after the donor’s death.)

Gift deeds are often used by parents to pass property to children, or by individuals to help relatives in need. Because it’s a formal legal record, the gift deed must be registered with the Sub-Registrar’s Office in Delhi to be valid for immovable property. Registering the deed creates an official record of the transaction and guarantees legal protection for both donor and donee.

Who Can Make or Receive a Gift?

Almost any adult of sound mind can give a gift deed. Donors can be parents, siblings, spouses, or even non-relatives (friends, NGOs, etc.), and donees can be any person or organization. The only essential requirement is the donor’s voluntary intent to give the property away, and the donee’s acceptance. The deed must clearly state that the gift is unconditional and accepted by the donee.

Some points to keep in mind:

• Relatives vs Non-Relatives: Indian law defines “relatives” broadly (spouse, siblings, parents, children, lineal descendants, etc.). Gifts between these relatives are generally exempt from income tax. Gifts to non-relatives have no such exemption above ₹50,000 (see Tax Implications below).
  
• Minors: A minor cannot make (or receive) a valid gift deed. The donor and donee must be adults with capacity to consent.
  
• NRI (Non-Resident Indian) Donors/Donees: NRIs can execute gift deeds in India, but must comply with FEMA (Foreign Exchange Management Act) regulations. For example, if an NRI is abroad, they may give a Power of Attorney to someone in Delhi to sign and register the deed on their behalf. An NRI should provide valid passport/OCI/PIO details and ensure funds (if any) transfer according to FEMA rules
  

Why Register a Gift Deed?

Registering the gift deed with the Sub-Registrar’s Office is mandatory for immovable property (land, buildings, apartments). speak with a property lawyer to understand your rights and obligations. A registered deed acts as proof of ownership change. It:

• Legally records the gift: Once registered, the deed is entered in government records, showing the donee as the new owner.
  
• Protects both parties: It prevents future disputes or claims on the property. A registered document is strong evidence if any legal issues arise
  
• Is required by law: Under the Registration Act, any transfer of property above a certain value must be registered to be valid. An unregistered gift deed has no legal standing in courts.
  

Registering also means paying stamp duty and registration fees, which we detail below.

Required Documents for Gift Deed Registration

When you go to register a gift deed in Delhi, you should carry the following key documents:

• Original Gift Deed (Draft): The gift deed should be drafted on stamp paper (of appropriate value) and signed by the donor and donee in two places; it also needs two witnesses who will sign as witnesses.
  
• Identity Proofs: Valid ID for donor and donee (Aadhaar card, passport, driver’s license, etc.)
  
• PAN Cards: Both donor and donee must provide PAN cards, as required for property transactions
  
• Proof of Ownership: Documents showing the donor’s ownership of the property – e.g. the previous Sale Deed or Title Deed and an Encumbrance Certificate (no dues certificate) if available.
  
• Photos: Recent passport-sized photographs of the donor, donee, and each witness
  
• Witness IDs: ID and address proof of the two witnesses (similar to donor/donee ID proofs)
  
• Other documents (if applicable): If the property is under a society or has a loan, you may need a Society NOC or a loan closure certificate. Municipal tax receipts or mutation records can also help verify ownership. If any party is NRI, bring passport and overseas address proof, and a notarized Power of Attorney if someone else will sign on their behalf.
  

Bring all originals and photocopies of the above documents to the Sub-Registrar’s office on the appointment day.

Related Article: What Is Power Of Attorney

Step-by-Step Registration Process in Delhi

Follow these steps to register a gift deed in Delhi:

1. Draft the Gift Deed: Prepare the deed with all required details – names and addresses of donor & donee, clear description of the property (including address and boundaries), declaration that it is a gift, and a statement of acceptance by the donee. You can use a standard gift deed format or get a lawyer to draft it. Make sure the deed mentions that the gift is made out of love and affection, without any payment. Both donor and donee should sign it (on each page ideally) in the presence of two witnesses, who also sign.
   
2. Calculate and Pay Stamp Duty:In Delhi, the stamp duty for a gift deed is 6% of the property’s market value for males and 4% for females. Additionally, a registration fee of 1% of the property value plus Rs. 100 for pasting charges is applicable. (This is a flat rate in Delhi – there is no extra concession for relatives) Use the Delhi e-Stamp or DORIS/IGRS portal to calculate the exact duty on your property (you may need details like area, type, circle rates). Pay the stamp duty online; you will receive an e-Stamp certificate. If e-stamping is not used, you must purchase stamp paper or adhesive stamps of the required value before registration.
   
3. Pay Registration Fee: Delhi charges 1% of property value as the registration fee (maximum ₹20,000). Often this can be paid online or at the Sub-Registrar office. On Delhi’s portal, you can complete payment of stamp duty and registration fee during the appointment scheduling step (see next). Note the 1% fee cap to avoid surprises.
   
4. Schedule an Online Appointment: Before visiting the office, book a registration slot on Delhi’s DORIS/IGRS portal. Delhi law requires all property registrations to be by appointment.. Log in to DORIS Delhi (Delhi Online Registration Information System), select “Property Registration,” fill in basic details (applicant name, property info, deed type = Gift), and pay the registration fee online. Then schedule an available date/time at your local Sub-Registrar Office.  Print the appointment slip and payment receipt; you’ll need them on the day.
   
5. Visit the Sub-Registrar’s Office: On the appointment date, both the donor and donee (and two witnesses) must go to the Sub-Registrar’s office together with all original documents. Submit the gift deed and supporting papers. The Registrar’s office will verify your documents. You may need to pay any remaining stamp duty or fees if not done already. The Registrar will have you sign the gift deed again in their presence, along with the witnesses.
   
6. Completion and Certificate: After signing, the Registrar will complete the registration. You will receive a registered copy of the Gift Deed with official seal and registration number. This typically happens the same day once all formalities are done. The registered deed is your legal proof that the property now belongs to the donee.
   
7. Post-Registration Steps: After registration, the donee should get the property transferred in local records (called mutation) and update any municipal/property tax records in their name. This completes the legal transfer of ownership.
   

Fees and Charges

• Stamp Duty: In Delhi, the stamp duty for a gift deed is 6% of the property’s market value for males and 4% for females(This rate is uniform; Delhi does not give extra concessions for gifts to relatives).
  
• Registration Fee: 1% of the property value (capped at ₹20,000)
  
• Miscellaneous: Small fees for certified copies or additional copies of the registered deed (if needed), and any drafting charges if you hire LegalCrusader or a lawyer to prepare the deed.
  

f you’re gifting a flat worth ₹50 lakh, the stamp duty in Delhi would come to ₹2 lakh (4%), and the registration fee would be ₹50,000 (1%). However, since Delhi has a cap on registration fees for gift deeds, you’d actually pay only ₹20,000. These rates can vary, so it’s always wise to double-check with the latest government notifications or speak with a property lawyer.

To make things easier, LegalCrusader offers end-to-end assistance from accurate stamp duty calculation to drafting a legally sound gift deed and completing the registration process smoothly. With professional support, you can avoid delays, errors, or future legal issues.

Related Article: Best Property Dispute Lawyer in Delhi

Tax Implications

• Income Tax (Recipient’s Side): India has no separate “gift tax.” However, under the Income Tax Act, gifts from non-relatives above ₹50,000 are taxable as “Income from Other Sources.” In Delhi (and all India), gifts received from relatives are fully tax-exempt, while gifts from non-relatives above ₹50,000 are taxed. For example, if a friend (non-relative) gifts you property worth more than ₹50,000, you must report the full value as income. Gifts from parents, siblings, spouse, children, etc., are not taxed at all
  
• Capital Gains (Donor’s Side): Generally, transferring property by gift doesn’t trigger capital gains tax for the donor because it’s not a “sale.” The donor is not receiving money, so they do not pay tax on capital gains at the time of the gift. (However, if later the donee sells the property, capital gains tax may apply to the donee based on the original purchase price.)
  
• Stamp Duty Taxation: The above stamp duty is a transfer duty, not an income tax. It must be paid even though no money changes hands.
  
• FEMA (for NRIs): If the donor or donee is an NRI, remember that gift transactions must follow FEMA rules. Generally, personal gifts between residents and NRIs are allowed, but any funds transfer (if involved) must be documented (e.g., through banking channels). Keep records of how the property was purchased or funded to avoid FEMA issues.
  

Common Questions

• Do I need a lawyer or can I do it myself? You can draft and register a gift deed on your own. However, having a legal professional (like LegalCrusader) check the deed ensures it’s correct and complete. Lawyers also guide you through government procedures. If you’re uncertain or this is a high-value property, professional help is advisable.
  
• Can I gift property to my spouse or child? Yes. Gift deeds to close relatives (spouse, children, parents, siblings, etc.) are common. The process is the same, and such gifts are tax-exempt for the recipient (child/spouse)
  
• What if I delay registration? A gift deed must be registered to be valid for immovable property. If you don’t register, the donee has no legal proof of ownership, and the deed is not enforceable. It’s best to register as soon as possible after preparing the deed.
  
• Can a gift deed be cancelled or revoked? A gift deed is usually irrevocable once registered. It can only be cancelled if both parties agree and a formal cancellation deed is registered, or if a court orders it (e.g., in case of fraud). Consult LegalCrusader if you have special circumstances.
  
• How long does registration take? Once you have an appointment, registration at the office is often completed on the same day (after all papers and payments are done). Getting an appointment on the portal might take a few days, so plan ahead.
  
• Do male and female donors pay different rates? Delhi’s gift deed 6% of the property’s market value for males and 4% for females, unlike some older conveyance rules. So there is no gender-based discount specifically for gifts.
  

Need help with your gift deed? Our expert lawyers can draft and register your Delhi gift deed correctly and quickly.

FAQs: Gift Deed Registration in Delhi

1. Is it mandatory to register a gift deed in Delhi?
Yes, registration is mandatory for all immovable property (like land, house, or flat). Without registration, the deed is not legally valid or enforceable.

2. Can a gift deed be challenged or cancelled?
A registered gift deed is generally irrevocable. It can only be cancelled with mutual consent through a registered cancellation deed, or via a court order in case of fraud or coercion.

3. Can NRIs register gift deeds in Delhi?
Yes, NRIs can gift property, but they must comply with FEMA rules. A Power of Attorney may be needed if they are abroad.

4. What happens after registration?
Post-registration, mutation of property records in the donee’s name should be completed at the local municipal office.

Conclusion

Registering a gift deed may seem complex, but with proper guidance, it’s a smooth and secure process. At LegalCrusader, our experienced property lawyers help you draft legally sound gift deeds, calculate exact stamp duty, schedule Sub-Registrar appointments, and ensure hassle-free registration. Whether you’re gifting property to your child, spouse, or relative, we offer end-to-end legal support – including FEMA compliance for NRIs. Our team ensures all documents are in order, legally valid, and registered without delays or errors. Avoid costly mistakes or future disputes by hiring a professional team that understands Delhi’s legal and property ecosystem