Gift deed is a legal instrument by which one person voluntarily transfers ownership of movable or immovable property to another without receiving any consideration in return. Under Indian law, a gift of immovable property is governed by Sections 122-129 of the Transfer of Property Act, 1882, and must be executed through a registered instrument signed by or on behalf of the donor and attested by at least two witnesses.
Legal definition
Section 122 of the Transfer of Property Act, 1882 defines "gift" as follows:
Section 122 — "Gift" defined: "Gift" is the transfer of certain existing moveable or immoveable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee.
The acceptance must be made during the lifetime of the donor and while he is still capable of giving. If the donee dies before acceptance, the gift is void.
Section 123 prescribes the mode of transfer:
Section 123 — Transfer how effected: For the purposes of Section 122, the transfer of immoveable property must be effected by a registered instrument signed by or on behalf of the donor, and attested by at least two witnesses. For the purposes of Section 122, the transfer of moveable property may be effected either by a registered instrument signed as aforesaid or by delivery.
Additionally, Section 17 of the Registration Act, 1908 mandates that all gifts of immovable property must be compulsorily registered with the Sub-Registrar having jurisdiction over the area where the property is situated.
How courts have interpreted this term
The Supreme Court has delivered several landmark rulings clarifying the requirements and effects of gift deeds:
Renikuntla Rajamma v. K. Sarwanamma [(2014) 9 SCC 445]
The Supreme Court held that the retention of possession or usufruct by the donor does not invalidate a gift deed, provided the transfer of title is clear and unrestricted. The Court clarified that once a gift deed is executed and registered, the donor's continued occupation of the gifted property does not vitiate the gift, as the essential requirements under Sections 122 and 123 are the voluntary transfer without consideration and execution through a registered instrument.
N.P. Saseendran v. N.P. Ponnamma [(2025) SCC OnLine SC]
The Supreme Court clarified two critical principles: first, delivery of possession is not essential for the validity of a gift deed of immovable property, and second, a gift deed cannot be unilaterally cancelled by the donor once it has been executed and accepted. The ruling reinforced that once the statutory requirements under Sections 122 and 123 of the TPA are fulfilled, the gift is irrevocable.
Thajudeen v. Tamil Nadu Khadi and Village Industries Board [(2024) SCC OnLine SC]
The Court held that revocation of a gift deed was invalid and the revocation deed was void ab initio. The Court reiterated that under Section 126 of the TPA, a gift can only be revoked if the donor and donee have mutually agreed that the gift shall be suspended or revoked upon the happening of a specified event that does not depend on the donor's will.
Types of gift deed
Indian law recognises the following categories of gifts:
- Simple gift: An unconditional transfer of property without any consideration, governed by Sections 122-123 TPA.
- Conditional gift / Onerous gift (Section 127 TPA): A gift made subject to obligations imposed on the donee. The donee must accept or reject the gift as a whole.
- Universal gift (Section 128 TPA): A gift of the donor's entire property, which makes the donee liable for all debts owed by the donor at the time of the gift.
- Gift to unborn person (Section 13 TPA): Permitted only if the property is first transferred to a living person for life, with a remainder to the unborn person who must come into existence before the life interest ends.
- Hiba (under Muslim personal law): A gift under Islamic law, which does not require a written instrument but requires declaration, acceptance, and delivery of possession. Registration is not compulsory for a hiba of immovable property under Muslim law, though it is advisable.
Why this matters
Gift deeds are one of the most common instruments for intergenerational property transfer in India, particularly within families. Parents frequently use gift deeds to transfer property to children during their lifetime rather than relying on testamentary succession, which avoids the delays and costs associated with probate proceedings.
The stamp duty implications of gift deeds vary significantly across states. Several states offer concessional stamp duty for gifts between specified family members. For instance, Maharashtra charges a nominal stamp duty of Rs 200 for gifts between certain family members (parents, children, spouse, siblings), while Karnataka levies a concessional rate. However, gifts to non-family members attract the same stamp duty as a sale deed in most states. Understanding these variations is essential for tax planning purposes.
A common misconception is that a gift deed can be revoked at will by the donor. The Supreme Court has consistently held that once a gift is completed by registration and acceptance, it is irrevocable unless the parties have mutually agreed to a condition for revocation under Section 126 TPA. Unilateral cancellation deeds executed by donors have no legal effect. Additionally, practitioners must note that income tax implications under Section 56(2)(x) of the Income Tax Act, 1961 require careful assessment, as gifts of immovable property received from non-relatives exceeding Rs 50,000 in stamp duty value are taxable in the donee's hands.
Related terms
Broader concepts:
Related instruments:
Related procedures:
Frequently asked questions
Can a gift deed be revoked after registration?
A gift deed, once executed and registered, is generally irrevocable under Indian law. Section 126 of the Transfer of Property Act permits revocation only if the donor and donee have mutually agreed that the gift shall be suspended or revoked upon the happening of a specified event that does not depend on the donor's will. Unilateral cancellation by the donor has no legal effect, as confirmed by the Supreme Court in N.P. Saseendran v. N.P. Ponnamma (2025).
Is stamp duty payable on a gift deed?
Yes. Gift deeds attract stamp duty, which varies by state. Several states offer concessional rates for gifts between specified family members. For instance, Maharashtra charges Rs 200 for gifts between parents, children, spouse, and siblings. Karnataka and Delhi also offer reduced rates for family transfers. Gifts to non-relatives typically attract the same stamp duty as a sale deed.
Is a gift deed valid without registration?
No. For immovable property, Section 123 of the Transfer of Property Act mandates that a gift must be effected by a registered instrument signed by the donor and attested by at least two witnesses. An unregistered gift deed for immovable property is void and confers no title. The only exception is hiba under Muslim personal law, where registration is not mandatory but delivery of possession is essential.
Are gifts taxable under Indian income tax law?
Gifts of immovable property received from non-relatives are taxable under Section 56(2)(x) of the Income Tax Act, 1961 if the stamp duty value exceeds Rs 50,000. However, gifts received from specified relatives (as defined in the Act) are fully exempt, regardless of the value. The definition of "relative" includes spouse, siblings, lineal ascendants and descendants, and certain in-laws.
This entry is part of the Veritect Indian Legal Glossary, a comprehensive reference of Indian legal terminology grounded in statutory text and judicial interpretation.
Last updated: 2026-03-27. Veritect provides this content for informational purposes and does not constitute legal advice.