Gift Deed Rules – Stamp Duty & Blood Relation

This article provides basic information regarding Stamp Duty, LBT, Metro Cess, Registration Charges, and the meaning, rules, and process of registration of Gift Deed of immovable properties in Pune, Pimpri Chinchwad, and the PMRDA area.

Meaning of Gift Deed

A gift deed is a document by which ownership of the property can be transferred without any Consideration. As the document name suggests, it is a Gift and the transaction should be made out of love and affection and there should not be any consideration involved. That means money transactions should not be involved when it comes to transferring property through Gift Deed.

Donor and Donee

A person who transfers the ownership is called a “Donor” and the person who gets the ownership is called a “Donee”.

Stamp Duty and Registration Fees are different on the basis of the relationship between the Donor and the Donee. I have explained this in detail below.

Type of Property –

Along with the relationship of the parties, the type of property is also deciding factor for the calculation of Stamp Duty, Registration Fees, and Other Charges for Gift Deed. There is no Stamp Duty exemption for the Gift Deed of Commercial Properties.

Government Valuation –

Government Valuation is a very important factor in the Gift Deed as there is no consideration involved in the Gift Deed. The Stamp Duty, LBT & Metro Cess, and Registration Fees shall be calculated on the basis of government value. Click here to learn how to check Government Valuation online.

Government Fees are Collected under 4 heads –

Stamp Duty –

(depends on the relationship between the parties) – Rs. 200/ – or some particular percentage on the government value of the share of the property which needs to be transferred. It also depends on the location of the property, e.g. In Nagpur, the Stamp Duty is slightly high.

LBT –

1% LBT ( Local Body Tax) is applicable on the Government Value of the property irrespective of the relationship between the Donor and the Donee. The only exception is that LBT is not applicable for the properties located in Mumbai Corporation.

Metro Cess –

(depends on the location of the property) – Irrespective of the relationship between the Donor and the Donee, from 1st April 2022, 1% Metro Cess is applicable for the Gift Deed of Properties Located in Pune & Pimpri Chinchwad Corporation and PMRDA (Pune Metropolitan Region Development Authority) areas.

Registration Charges –

(depends on the relationship between the parties) – Rs. 200/ – or 1% on the government value of the share of the property which needs to be transferred (Registration Charges Can be up to Rs. 30,000/-)

Now these Gift Deeds are categorized into three categories and there are different Stamp Duty and other charges applicable, so let’s see them one by one.

Relationship Rules –

Applicability of Stamp Duty depends on the relationship between the person who is gifting the property and a person who is receiving the gift. On the basis of the relationship, the gift deed is differentiated into 3 categories to charge the stamp duty. For convenience, we will call them Group 1, Group 2, and Group 3.

Group 1 – If a person wants to gift a residential or agricultural property to a son, daughter, wife, grandchildren, etc., such gift deed will be considered in a group 1 and Rs. 200/- Stamp Duty, 1% LBT, 1% Metro Cess, and Rs. 200/- Registration Fees will be applicable.

Group 2 – If a person wants to gift a property (residential or agricultural) to a brother, sister, father, mother, etc., it will be considered as group 2 and 3% Stamp Duty + 1% LBT, 1% Metro Cess, and + 1% Registration Fees on the Government Value of the property (Max 30 K) will be applicable.

Group 3 – And, there is no exemption for the gift deeds which fall under the last category, for example – gift deed in favor of a friend, uncle, aunt, etc. For such gift deed, stamp duty and registration charges equivalent to Stamp Duty for Sale or Purchase of Property will be applicable.

There is no exemption on the stamp duty for the gift deed of commercial properties in Solapur. For such a gift deed, the stamp duty equivalent to the conveyance deed will be applicable.

Stamp Duty & Other Charges for Gift Deed of Residential or Agricultural Property –

There are three categories of the Gift Deed as far as the concerned with the applicability of the Stamp Duty and Registration Fees. There is a misconception that stamp duty is not applicable if someone wants to make a Gift Deed in favor of blood relation. Some blood relationships come under the first category where stamp duty is exempted, for example – Son, Daughter, Grandson, Grand Daughter, and Wife and Husband too. But if the son or daughter wants to make a Gift Deed in favor of the father or mother, there is less stamp duty exemption. I have explained this in detail below.

Gift Deed in favor of Husband, Wife, Son, Daughter, Grandson, Granddaughter or Wife of a deceased son –

In Pune, Stamp Duty and Registration Fees are very nominal if someone wants to Gift the agricultural or residential property in favor of the relationship mentioned above. But, Metro Cess and LBT of 1% are applicable in addition to the Stamp Duty. To be precise, the Stamp Duty of Rs. 200/-, Registration of Rs. 200/-, 1% Metro Cess (not applicable in Pune rural areas), and 1% LBT are applicable on the Government Value of the property.

Gift Deed to other family members

Gift Deed in favor of other Family Members (not in favor of near relatives ) – 3% Stamp Duty, 1% LBT, 1% Metro Cess, and 1% Registration Charges (Max Rs. 30,000/-) is applicable.

Gift Deed to other than Family Members –

Stamp Duty, LBT, and Registration Fees equivalent to the Conveyance Deed for the region where the property is located will be applicable. Equivalent to Sale Deed/Conveyance Deed.

Charges for Gift Deed of a Commercial Property –

There is no exemption in the Stamp Duty and Registration Fees when it comes to Commercial Property. Stamp Duty, LBT, Metro Cess, and Registration Fees which are applicable for the conveyance deed (sale deed, deed of assignment, agreement for sale, etc.) will be applicable to the Gift Deed of Commercial Property too. e.g If the property is located in Pune or Pimpri Chinchwad Corporation area then 5% Stamp Duty + 1% LBT + 1% Metro Cess + 1% Registration Fees will be applicable. These charges shall be calculated on the Government Value of the property.

When Stamp Duty Exemption is Applicable?

In case the Donor gifts the agricultural or residential property in favor of Near Relatives (Husband, Wife, Son, Daughter, Grandson, Granddaughter, or Wife of a deceased son).

What are the Documents Required?

Purchase Agreement along with Index II;
Completion Certificate;
Aadhar Cards and PAN Cards of both parties;
Electricity Bill; and
Property Tax Bill.
Society Registration Certificate.
Society share certificate.

Registration Process

The registration process for all the documents is the same, there is no different process for the Gift Deed. First parties need to prepare a Gift Deed on the hard paper, all parties along with witnesses should sign on it, parties should affix their photograph and put thumb impression too, challan of stamp duty and registration fees along with photocopies of identity proof, property document should be attached. After doing all this, parties should visit the sub-registration office to register the document.

You can read our other detailed article on the process of registration here.

Release Deed Vs Gift Deed Vs Will

Release Deed vs Gift Deed – A release deed can be done only for the properties which are hereditary in other cases where no consideration is involved the Gift Deed must be done.

Will vs Gift Deed – By Will, the property gets transferred after the death of the testator but by Gift Deed, the property gets transferred immediately.

Table of Examples –

Relationship	Location	Stamp Duty	LBT	Metro cess
Gift Deed in Favour of Husband, Wife, Son, Daughter, Grandson, Granddaughter or Wife of deceased son	Corporation	Rs. 200/-	1% on the Government Value of the Property	1% on the Government Value of the Property
Gift Deed in Favour of Husband, Wife, Son, Daughter, Grandson, Granddaughter or Wife of deceased son	Rural	Rs. 200/-	1% on the Government Value of the Property	NA
Gift Deed to other family members, e.g. Brother, Sister, Father, Mother, etc.	Corporation	3% on the Government Value of the Property	1% on the Government Value of the Property	1% on the Government Value of the Property
Gift Deed to other family members, e.g. Brother, Sister, Father, Mother, etc.	Rural	3% on the Government Value of the Property	1% on the Government Value of the Property	NA
Gift Deed to other than the relationship mentioned above.	Corporation	5% on the Government Value of the Property	1% on the Government Value of the Property	1% on the Government Value of the Property
Gift Deed to other than relationship mentioned above.	Rural	4% on the Government Value of the Property	1% on the Government Value of the Property	NA
Gift Deed of Commercial Properties	Corporation	5% on the Government Value of the Property	1% on the Government Value of the Property	1% on the Government Value of the Property
Gift Deed of Commercial Properties	Rural	4% on the Government Value of the Property	1% on the Government Value of the Property	NA

Recent Updates –

1 April 2022 – Metro Cess waiver period is over, now 1% Metro Cess is applicable along with the Stamp Duty and other charges.

1 April 2021 – LBT waiver period is over and now 1% LBT is applicable along with the Stamp Duty on all Gift Deeds.

31 August 2020 – From 1st September 2020 to 31st December 2020 LBT will be exempted and from 1st January 2021 to 31st March 2021 it will be reduced to half.

1 April 2020 – 1% Stamp Duty (Metro Railway Tax) is waived off for the Gift Deed of the properties located in Pune, Pimpri-Chinchwad, Nagpur Corporation Areas and properties under MMRDA (Mumbai Metropolitan Region Development Authority).

Let us know if you have any queries regarding the Gift Deed of properties located at Pune and Pimpri Chinchwad corporation or rural areas.