Answer

Estate planning · Gift Deed

Gift deed: tax implications and stamp duty

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  1. Facts

    A gift of property to a specified relative is fully exempt from income tax in the recipient's hands under Sec 92(2)(m), Income-tax Act 2025 (old Sec 56(2)(x)), no matter the value. Relatives for this purpose: spouse, siblings, siblings of spouse, siblings of parents, lineal ascendants/descendants and their spouses. Gift deed must be executed and registered at Sub-Registrar.

  2. Provisions and law

    • Transfer of Property Act 1882, Sec 122 | IT Act Sec 92(2)(m) (old 56(2)(x))

  3. Analysis

    Stamp duty applies, varies by state (0% for blood relatives in some states, up to 5% in others). Future gains on gifted property: taxed in recipient's hands.

  4. Conclusion

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Stamp duty and registration of a sale deed in Delhi (DORIS)

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