How to Gift a Property in India - Legally, Smoothly and Meaningfully

Looking for a gift that lasts a lifetime? In India, few things are as meaningful or as powerful as gifting a home. Whether it’s a parent passing on their legacy to children or someone gifting a loved one financial security, property gifting is an act of love that carries lasting impact.

But unlike everyday gifts, this one comes with important legal, tax, and documentation requirements that make it valid and binding.

Here’s a detailed guide to doing it right:

1. Choose the Right Property

Start by identifying a property that aligns with the recipient’s goals - whether it’s a city apartment, a vacation home in Alibaug or land for future investment. Remember: the property must have a clear title - meaning it’s free of disputes, loans or pending dues - before it can be gifted.

2. Draft and Register a Gift Deed

A Gift Deed is the backbone of any property gift in India. It’s a legal document that officially transfers ownership from the donor (the person gifting) to the donee (the person receiving the gift).

The deed must include:

• Complete details of both parties

• Description of the property

• Confirmation that the transfer is voluntary and without monetary exchange.

Once drafted by a legal expert, the deed must be executed on stamp paper and registered at the local sub-registrar’s office in the presence of two witnesses.

Note: Verbal or unregistered gifts hold no legal validity in India.

3. Understand Stamp Duty & Registration Costs

Stamp duty for gifted properties varies across Indian states and also depends on the relationship between the donor and donee.

• In Maharashtra, gifts to close relatives (like parents, siblings, or children) are either fully exempt or attract minimal duty (₹200).

• Gifts to non-relatives can attract stamp duty similar to a sale transaction - between 3% to 6%.

  
  

Registration charges (typically around 1%) are also payable at the time of execution.

4. Know the Tax Implications

Here’s the good news - property gifted to close relatives is tax-free under the Indian Income Tax Act. To stay compliant, both parties should keep a copy of the registered gift deed and declare the transaction in their annual tax filings if required.

bai’s emerging hubs or second-home destinations like Alibaug or Pawna.

Gifting property in India is a beautiful way to pass on both security and sentiment. With the right documentation and legal support, the process is straightforward and deeply rewarding.

At Primon Properties, we’ve guided countless families through this journey - from choosing the right property to ensuring every legal detail is handled seamlessly.