Legal requirements for a valid gift
Under Section 122 TPA a gift must be of existing property, made voluntarily and without consideration, and accepted by the donee during the donor's lifetime. If the donee dies before accepting, the gift is void.
Section 123 requires a gift of immovable property to be made by a registered instrument signed by the donor and attested by at least two witnesses.
Can a gift be cancelled?
A completed gift generally cannot be revoked. Section 126 allows revocation only on a condition agreed by both parties that does not depend on the donor's will alone, or on grounds on which a contract could be rescinded, such as fraud or coercion.
Under Section 23 of the Maintenance and Welfare of Parents and Senior Citizens Act, 2007, a tribunal may declare a gift void if it was made on the condition that the donee would look after the senior citizen and the donee fails to do so. If you want this protection, state the condition clearly in the deed.
Income-tax on gifts
Property received as a gift from a "relative" (spouse, siblings, lineal ascendants and descendants and certain others as defined in the Income-tax law) is not taxed in the donee's hands. A gift of property from a non-relative is taxable as income if its stamp duty value exceeds ₹50,000.
When the donee later sells, the cost and holding period of the previous owner are counted for capital gains.
Frequently asked questions
Is registration of a gift deed compulsory?
Yes, for immovable property (Section 123 TPA, Section 17(1)(a) Registration Act). An unregistered gift deed does not transfer the property.
How many witnesses are needed?
At least two attesting witnesses.
Is stamp duty lower for family gifts?
In many States, yes. Gifts to a spouse, children or grandchildren often carry a fixed or concessional duty. Check the current State schedule.
Is a gift of property from my father taxable?
No. Gifts from a relative as defined in the Income-tax law are exempt in the donee's hands.
Related formats
Official sources
- Transfer of Property Act, 1882 — India Code
- Registration Act, 1908 — India Code
- Indian Stamp Act, 1899 — India Code
- Maintenance and Welfare of Parents and Senior Citizens Act, 2007 — India Code
This page gives general information, not legal advice. Forms, fees and timelines are set by each State and can change — confirm on your State portal before applying.