# Tax on Gifted Property

> Property received as a gift from a relative is not taxed; from a non-relative, its stamp-duty value is taxable as income if it exceeds ₹50,000. A gift of immovable property needs a registered gift deed with stamp duty (often concessional for family gifts in many states). If you gift property to your spouse, the income from it — such as rent — is still taxed in your hands under the clubbing rules. When the recipient sells, the donor's cost and holding period are used.

Practice: Property & Capital Gains Tax — https://www.industax.com/services/property-tax/

Gifts are a common way to transfer property within families, but the clubbing provisions catch many: gifting a rented flat to a spouse doesn't move the rental income out of your return, and gifts to minor children are also clubbed.

We draft and register the gift deed, check the state's stamp-duty concession, and plan whether a gift, a sale or a will achieves the family's goal with the least tax.

## Key facts

| Item | Detail |
| --- | --- |
| From relatives | Exempt |
| From non-relatives | Stamp-duty value taxable if > ₹50,000 |
| Instrument | Registered gift deed; state stamp duty |
| Clubbing | Income from property gifted to spouse taxed in donor's hands |
| On sale | Donor's cost and holding period apply |

## Who needs this

- Parents gifting property to children
- Spouses transferring property
- Recipients selling gifted property

## What's included

- Relative and clubbing analysis
- Gift deed drafting and registration
- Stamp-duty guidance
- Tax on subsequent sale

## Documents

- Title documents
- Relationship proof
- Property valuation / stamp-duty value

## Process

1. **Plan** — Gift vs alternatives compared.
2. **Execute** — Gift deed registered.
3. **Report** — Income and later sale reported correctly.

## FAQs

### Is a flat gifted by my parents taxable?

No, gifts from parents are exempt as gifts from relatives.

### If I gift my rented flat to my wife, who pays tax on the rent?

You do — the rent is clubbed with your income under the clubbing provisions.

### Can a gift deed be revoked?

Generally not, unless the deed itself provides for revocation on specified events; it should be drafted carefully.

## Official sources

- Income Tax e-Filing portal: https://www.incometax.gov.in/

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Canonical page: https://www.industax.com/services/property-tax/gifted-property-tax
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.