What is the stamp duty for gifting property to a family member?

Gifting property to a close family member usually attracts concessional stamp duty in most Indian states, which is significantly lower than the duty on a normal sale. However, a gift deed must still be properly executed and registered to be legally valid, and the exact rate depends on your state's stamp law.

Key points

• A gift of immovable property must be made through a written gift deed that is registered — an oral gift of immovable property is not valid.
• Many states offer reduced stamp duty (sometimes a nominal or capped amount) when the gift is to specified blood relatives such as children, spouse, or parents.
• The definition of "family" for concession purposes varies by state, so confirm whether your relationship qualifies.
• The gift must be voluntary, without consideration (payment), and accepted by the recipient during the donor's lifetime.
• Once gifted and registered, ownership transfers immediately and the donor cannot unilaterally revoke it except on narrow legal grounds.

Relevant law

A gift is governed by Section 122 of the Transfer of Property Act, 1882, and registration is mandatory under Section 17 of the Registration Act, 1908. Stamp duty is levied under the Uttar Pradesh Stamp Act (or the Indian Stamp Act as applied in Uttar Pradesh), which sets any family concession rate.

What you can do

• Confirm the applicable family gift stamp duty rate for Uttar Pradesh at the Sub-Registrar's office or the state registration department portal.
• Get a gift deed drafted clearly identifying the donor, donee, relationship, and property.
• Register the gift deed at the Sub-Registrar office in Agra after paying the applicable stamp duty and registration fee.
• Consult a property lawyer in Agra to ensure the deed is valid and the concession is correctly claimed.