# Gift Deed Drafting

> A gift deed transfers property voluntarily and without consideration. A gift of immovable property must be made by a registered deed signed by the donor and attested by two witnesses, and accepted by the donee during the donor's lifetime. Gifts from 'relatives' as defined in the Income-tax Act are tax-free for the recipient; gifts from others above ₹50,000 a year are taxable. Many states charge lower stamp duty on gifts to close family.

Practice: Legal Documents & Agreements — https://www.industax.com/services/legal-documents/

Tax doesn't end at the gift: when the recipient later sells, the donor's cost and holding period carry over, and income from gifted assets between spouses (and to minor children) can be clubbed back to the donor.

We draft the deed, confirm the state's stamp duty (including family concessions), and advise on clubbing and later capital gains before the gift is made.

## Key facts

| Item | Detail |
| --- | --- |
| Law | Section 122–129, Transfer of Property Act 1882 |
| Immovable property | Registered deed, two attesting witnesses |
| Tax on recipient | Exempt from relatives; taxable from others above ₹50,000 |
| Stamp duty | State-specific; concessions for close family in many states |
| Clubbing | Income from gifts to spouse or minor child taxed in donor's hands |

## Who needs this

- Parents gifting property to children
- Families restructuring holdings
- NRIs gifting or receiving property in India

## What's included

- Gift deed drafting
- Stamp duty and registration guidance
- Tax and clubbing advice
- FEMA check for NRIs

## Documents

- Title documents of the property
- Donor and donee KYC
- Relationship proof

## Process

1. **Plan** — Tax, clubbing and stamp duty reviewed.
2. **Draft** — Deed prepared.
3. **Register** — Executed before the sub-registrar.

## FAQs

### Can I take back property after gifting it?

Generally no. A completed, accepted gift can be revoked only on grounds such as fraud or a condition agreed in the deed, and under the Senior Citizens Act a tribunal can set aside a gift where the donee fails to maintain the elderly donor as promised.

### Who counts as a relative for tax-free gifts?

Spouse, brothers and sisters (and their spouses), siblings of either parent, lineal ascendants and descendants of the individual or spouse, and their spouses, among others defined in the Act.

### Can an NRI gift property in India to a resident?

Yes, an NRI or OCI can gift residential or commercial property in India to a relative. Agricultural land and farmhouses can be gifted only to resident Indian citizens, OCIs and NRIs under FEMA rules.

## Official sources

- India Code — central Acts: https://www.indiacode.nic.in/

---
Canonical page: https://www.industax.com/services/legal-documents/gift-deed
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.