A gift deed is a legal paper through which a person (called the donor) gives their movable or immovable property to another person (called the donee) without taking any money in return. It is not a sale or rent agreement—this transfer is done out of love, care, or goodwill. The rules for gift deeds are written in the Transfer of Property Act, 1882, under Section 122.
It’s important to understand that a gift deed once registered becomes legally binding and is difficult to revoke unless specific legal provisions are in place.
Legal Framework Governing Gift Deeds in India
The primary legislation that governs gift deeds in India is the Transfer of Property Act, 1882 (TPA). Gift transactions are regulated from Section 122 to Section 129 of the TPA.
Section 122: Defines a gift as a voluntary transfer.
Section 123: States that a gift of immovable property must be registered.
Section 125: Emphasizes the need for acceptance.
Section 126: Outlines the conditions under which a gift may be revoked.
Essential Elements of a Valid Gift Deed
A gift deed must satisfy the following five essential conditions to be valid in the eyes of law:
- Existence of Parties: There must be a clear donor and a donee.
- Subject Matter: The property being gifted must already exist and should be something that can legally be transferred—it cannot be a property that the person might get in the future.
- No Consideration: Gifts must be given without expecting anything in return.
- Free Consent: There must be no coercion, fraud, or undue influence.
- Acceptance: The person receiving the gift (donee) must say yes and accept the gift while the person giving it (donor) is still alive.
These conditions were reaffirmed by the Supreme Court in 2024 in the case of N. Tajudeen vs Tamil Nadu Khadi & Village Industries Board.
Format of Gift Deed in Word – A Legal Sample
Creating a gift deed doesn’t require complex legal jargon. You can prepare a format of gift deed in Word as long as it contains the following elements:
Name and address of the donor and donee
Description of the property
Statement of free will and love/affection
Confirmation of no consideration
Acceptance by donee
Two witnesses and their signatures
Gift Deed Format for Money
If you’re transferring money as a gift (above ₹50,000), you must declare it via a formal gift deed to avoid scrutiny under the Income Tax Act, 1961. This gift deed should mention the exact amount and mode of transfer (bank cheque, RTGS, etc.).
Gift Deed Format in Word in English
Gift Deed Format in Hindi
Stamp Duty for Gift Deed in Different States
| State | Blood Relation (in %) | Others (in %) |
|---|---|---|
| Maharashtra | ₹200 (Flat) | 3% to 5% |
| Delhi | 0.5% | 0.3% |
| Karnataka | ₹500 | 5% |
| Uttar Pradesh | ₹60 to ₹125 | 6% |
Always consult your local sub-registrar office or visit Charteredhelp for updated rates.
Why Gift Deed Registration is Important
To make a gift of immovable property legally valid, it must be registered under the Registration Act, 1908.
Here’s what you need:
- The donor, donee, and two witnesses must be present.
- It should be made on the correct value of non-judicial stamp paper.
- Notarization alone is not enough—registration is compulsory.
Gift Deed Blood Relation – Tax and Duty Exemptions
If you are gifting property or money to close family members (like parents, spouse, siblings, children, or grandchildren), then:
- You may get reduced stamp duty.
- In many cases, there is no income tax to pay.
These benefits are helpful when passing property within the family.
Tax on Gift Deed – What You Should Know
As per Income Tax Act (Section 56(2)(x)):
- Gifts from relatives are not taxable.
- Gifts worth more than ₹50,000 from non-relatives are taxable in the hands of the receiver.
- Gifts like agricultural land or certain movable assets may be tax-free under specific conditions.
Important Gift Deed Rules – As per Supreme Court 2024 Judgment
In the 2024 case N. Tajudeen v. Tamil Nadu Khadi Board, the Supreme Court explained:
- A gift can only be cancelled if both parties agree or a special condition is broken.
- The gift must be given and accepted voluntarily.
- It must be without any payment, and must be registered.
Can a Gift Be Taken Back (Revoked)?
According to Section 126 of the Transfer of Property Act (TPA), a gift can be cancelled only if:
- Both sides agreed to a revocation clause at the time of making the deed.
- A specific condition mentioned in the deed is not followed.
👉 You cannot cancel the gift later just because you changed your mind.
Can a Gift Deed Be Cancelled?
Yes, but only in limited cases:
- If the court cancels it due to fraud or pressure.
- If both parties agree to cancel.
- If the gift deed has a clause that allows cancellation.
Cancelling a Gift Deed – How to Do It Legally
To legally cancel a gift deed:
- File a civil case in the district court.
- Prove that a condition was broken or the gift was not given with free will.
- Show supporting documents and get witnesses, if needed.
🔐 Once a gift is registered, cancelling it without a valid reason becomes very difficult.
Can the Gift Deed Be Challenged After the Donor’s Death?
Yes, but only under certain conditions:
- If someone can prove there was fraud, pressure, or the donor was mentally unfit.
- If the gift deed was not properly registered or not signed correctly.
👉 Without proof, the deed remains valid and legal.
Rights and Responsibilities of Donor and Donee
Donor (Person Giving the Gift):
- Must give the gift voluntarily and with full consent.
- Cannot take the property back after giving it (unless revocation rights are mentioned).
Donee (Person Receiving the Gift):
- Must accept the gift for it to be valid.
- Becomes the legal owner after the gift deed is registered.
FAQ's
No, gift of immovable property must be in writing and registered.
Yes, though at concessional rates depending on the state.
Yes, but it must be accepted by a natural guardian.
Yes, especially for large amounts to avoid tax disputes.
Usually 1-2 working days at the sub-registrar’s office.
Yes, contingent gifts are allowed under Section 126 TPA.
Conclusion: Why a Proper Gift Deed Protects Your Rights
Drafting and registering a proper gift deed is crucial for legal safety. It ensures that your property transfer is permanent, recognized by law, and protected from future disputes.
Whether gifting to a blood relative or another person, always follow legal norms to avoid unnecessary litigation.
Get Your Gift Deed Drafted Professionally
Are you planning to draft or register a gift deed? Don’t risk errors! Connect with verified professionals and legal experts at CharteredHelp. They offer:
- Customised draft in Word/PDF formats
- Stamp duty advisory
- Full legal compliance
