A gift deed in blood relationship is a lawful document that transfers property between relatives of the blood without any consideration. This document makes the transfer legally valid and acceptable. Gifting deeds within blood relatives like parents and children or siblings is often subject to lower stamp duty or exemption for promoting family property transfers.
What is a Gift Deed in Blood Relation?
Gift Deed in Blood Relation is a legally valid document that enables transfer of property—movable or immovable—by one family member (donor) to another (donee) without money. While sale deeds include a financial consideration, a gift deed is given out of affection and love between close relatives like parents, children, siblings, or spouses.
Complying with a gift deed by blood relatives has several legal and financial advantages, such as less stamp duty, immunity from income tax, and easy transfer. Still, it is important to know the required elements, legal formalities, and state-wise implications on stamp duty to make the transfer smooth and valid.
In this detailed guide, we’ll cover the definition, advantages, registration procedure, taxation aspects, and state-by-state stamp duty charges for a blood relation gift deed to ensure smooth sailing with this legal procedure.
Understanding Gift Deed In Blood Relation
A Gift Deed is a document of law whereby title to movable or immovable property is transferred by one individual (the donor) to another (the donee) without any consideration in the shape of money or other valuable consideration.
Gift Deed Registration Charges Based On States
| State | Stamp Duty | Exclusive Consideration |
| Haryana | No stamp duty for gift deeds to blood relatives | Must be executed on stamp paper, registered, and signed with witnesses. |
| Karnataka | Rs 1,000 to Rs 5,000; 5.6% for non-family transfers | Registration at the sub-registrar’s office is required. |
| Maharashtra | 3% for blood relatives; Rs. 200 for residential/agricultural land; 5% otherwise | Registration and submission of valuation & encumbrance certificates required. |
| Punjab | 0% for blood relatives; 6% for others | Stamp duty depends on market value; legal formalities must be completed. |
| Rajasthan | 2.5% for blood relatives; 4% for others | Commercial properties may have different calculations. |
| Tamil Nadu | 1% for blood relatives; 7% for non-family members | Different rates may apply to commercial properties. |
| West Bengal | 0.5% for blood relatives; 6% for others | 1% surcharge applies for properties above Rs 40 lakhs. |
Meaning And Scope
A Gift Deed is a legal instrument created to transfer movable or immovable property from one individual to another on gratuitous terms in consideration of love and affection. Although it is a regular gift offered between blood relations, it can be with emotional feelings, imposition of certain conditions, and certain legal provisions on account of such a relationship in the majority of jurisdictions. For blood relatives, the range of the Gift Deed solvable is but not limited to the following: land and buildings, motor vehicles, shares, and jewelry.
Who Qualifies As Blood Relatives?
Blood relatives are defined as follows:
- Kids and Siblings
- The grandparents
- Parents Spouses (usually linked by marriage)
- Certain lineal descendants and ascendants are also permitted in some states.
For a gift deed, is a blood relationship required?
Even though a gift deed can be signed between any two persons, it is usual to see relatives having their personal preferences, particularly with reference to stamp duty and taxation. Nevertheless, a gift deed is a valid legal argument to transfer property to strangers.
Key Element Of Gift Deed In Blood Relation
A legal Gift Deed should provide the necessary information so that the deed is upheld effectively.
Principal Information To Incorporate In Gift Deed In Blood Relation
The principal characteristics of a gift deed are:
- Full name, address, and relationship of both donor and donee.
- Particulars description of the property encompassing where it is, how big, and what limits it has.
- Should mention it is a free will and voluntary transfer without any consideration, mentioning that the gift is accepted explicitly by the donee.
- Signature of two witnesses.
- Location and date of execution.
Benefits To The Law Of Performing A Gift Deed In A Blood Relationship
The legal advantages of registering a sale deed are as follows:
- A gift deed provides the legally valid and unambiguous transfer of property to the beneficiary, reducing the chances of family members raising disputes.
- Accordingly, gifts from near relations can be exempted from stamp duty or be subjected to reductions.
- In addition, proper documentation guarantees clarity and protection against potential misunderstandings.
- Gift deeds in estate planning are significant in the planned and smooth transfer of values from one individual to another.
- By rendering a gift legally enforceable, the donor is able to guarantee his or her wishes and the gift will pass through, which enables an effective transfer of assets that reduces related legal uncertainties and complexities.
Step-by-Step Procedure Of Registering A Gift Deed In Blood Relation
Procedure to register a gift deed in blood relation:
- The first step is to prepare the Gift Deed properly and in clear terms.
- Stamp it with a proper stamp paper value according to the state stamp duty rules. The donor, the donee, and two witnesses should sign the deed.
- After making the signatures, the Gift Deed needs to be registered before the office of the sub-registrar that exercises jurisdiction over the property.
- Submission will involve the original Gift Deed, identification proof, and property documents.
- Payment of registration charges will be according to the local regulations. Complete this process by taking delivery of the registered Gift Deed after verification.
How Long Does The Gift Deed Process Take?
The Gift Deed process timeline, however, can differ quite extensively by state and also by the efficiency of the sub-registrar’s office. One would generally expect it to take a few weeks to a few days.
Stamp Duty Rebates On Gift Deeds For Blood Relatives: State-Wise Benefits in India
The registration fee of the gift deed will differ with respect to the value of the property and the state where the property is located. It is usually a percentage of the transaction value borne for the property but differs state-wise and based on the type of property.
Haryana
From 2014, Haryana has granted relief from stamp duty on gift deeds made in favour of blood relations. The relief can be utilized subject to the condition that the gift deed must be made on stamp paper, registered at the sub-registrar’s office, and signed before witnesses by both parties.
Karnataka
The stamp duty varies between Rs 1,000 and Rs 5,000, subject to the property’s location in question. It has to be registered at a sub-registrar’s office by submitting property documents, sale deeds, identification, or power of attorney. On a transfer to a non-relative, a payment of 5.6% of the gross market value of the property has to be made.
Maharashtra
Stamp duty is Rs. 3%, which is to be paid if transferrer and transferee are blood relations, and in other situations Rs. 200 for the agricultural land or the residential property. Another requirement is registration with the local authorities and filing valuation and encumbrance certificates. Stamp duty should be 5% in other situations.
Punjab
Stamp duty of blood relatives is not greater than 0%, whereas for others it is 6%. The process is to register with the sub-registrar, produce property documents, and legal formalities. The amount of stamp duty to be paid is based on the market value of the property.
Rajasthan
Transfer tax is 2.5% between blood relatives and 4% for others. It includes registration with local authorities, submission of documents on the properties, and documents pertaining to the act. Commercial properties can have a different basis for calculation.
Tamilnadu
Stamp duty is 1% in case of transfer among blood relatives and 7% in case of non-relatives. The buyer must submit the property documents, sale deeds, ID proofs, valuation certificates, and encumbrance certificates. Special rates are applicable for commercial properties that might vary from the above.
West Bengal
Stamp duty in case of transfers among blood relatives is at 0.5% and among non-relatives is at 6%. Registration with the sub-registrar is done along with required property documents and legal documents. Moreover, for property over Rs 40 lakhs, there is a 1% surcharge.
Frequently Asked Questions
Q1. What is a Gift Deed in blood relation?
Ans1. A Gift Deed in blood relation is a legal document that facilitates the transfer of movable or immovable property from one family member (donor) to another (donee) without any monetary consideration, typically done out of love and affection.
Q2. Who qualifies as a blood relative for a Gift Deed in India?
Ans2. Blood relatives include parents, children, siblings, grandparents, and in some cases, spouses and lineal descendants or ascendants, depending on the specific state regulations in India.
Q3. Is stamp duty exempted on Gift Deeds between blood relatives?
Ans3. Yes, several Indian states like Haryana, Punjab, and West Bengal offer full or partial stamp duty exemptions on Gift Deeds executed between blood relatives to encourage intra-family property transfers.
Q4. What are the benefits of registering a Gift Deed with a blood relative?
Ans4. Registering a Gift Deed offers legal validity, reduces the chances of future disputes, may provide stamp duty exemptions, and ensures tax benefits under income tax rules for gifts between close family members.
Q5. What documents are required for registering a Gift Deed in blood relation?
Ans5. Essential documents include the original Gift Deed, identity proofs of both parties, property documents, and valuation or encumbrance certificates as required by the respective state.
Q6. Can a Gift Deed be challenged in court?
Ans6. Yes, a Gift Deed can be challenged in court if there is proof of coercion, fraud, or lack of free consent. However, a properly drafted and registered deed with witnesses is legally strong.
Q7. What is the procedure to register a Gift Deed with a family member?
Ans7. The process includes drafting the Gift Deed, signing it with two witnesses, paying applicable stamp duty, and registering it at the sub-registrar’s office with all required documents.
Q8. Is income tax applicable on Gift Deeds between blood relatives?
Ans8. No, gifts received from specified blood relatives are exempt from income tax under Section 56(2) of the Income Tax Act in India.
Q9. What is the time required to complete the Gift Deed registration?
Ans9. The timeline can vary by state but typically ranges from a few days to a few weeks depending on the efficiency of the sub-registrar’s office and document preparedness.
Q10. How does stamp duty on Gift Deeds differ by state in India?
Ans10. Stamp duty rates vary by state—for example, 0% in Punjab, 0.5% in West Bengal, and 1% in Tamil Nadu for blood relatives—while higher rates apply for transfers to non-relatives.
