A gift deed is the most common way for parents in Maharashtra to transfer a flat or land to their children during their lifetime. For close family it is also inexpensive: a gift of a residential or agricultural property to a spouse, child or grandchild attracts stamp duty of only Rs 200. But a gift is final in a way that a will is not, so it should be understood before it is signed.
What makes a valid gift
Under Section 122 of the Transfer of Property Act, 1882, a gift is a transfer of existing property made voluntarily and without any payment, by the donor to the donee, and accepted by the donee during the donor’s lifetime. A gift of immovable property must be made by a registered document signed by the donor and attested by at least two witnesses (Section 123). An unregistered gift deed of a flat or land does not transfer ownership.
Stamp duty on a gift deed in Maharashtra
| Gift | Stamp duty (Article 34, Maharashtra Stamp Act) |
|---|---|
| Residential or agricultural property to husband, wife, son, daughter, grandson, granddaughter, or the wife of a deceased son | Rs 200 |
| Any other property gifted to husband, wife, brother, sister, or a lineal ascendant or descendant (parents, grandparents, children, grandchildren) | 3% of market value |
| Gift to anyone else | Same as on a sale (conveyance) on market value |
Market value is taken from the Ready Reckoner. Duty is paid online through GRAS or by e-SBTR. The registration fee for a gift in the Rs 200 category is also nominal; in other cases it is generally 1% of market value, subject to the ceiling in force. The Rs 200 rate was added by the Maharashtra Stamp (Amendment) Act, 2015, and the 3% rate for close family follows the amendment of 2017. Rates can change again, so confirm the current figures with the Sub-Registrar or the IGR Maharashtra website before execution.
Note that a gift to a parent or a sibling does not fall in the Rs 200 category, even though they are close family.
Documents usually needed
- The donor’s title documents: registered agreement or sale deed, share certificate (for a society flat), index II, property card or 7/12 extract;
- Latest property tax and maintenance receipts;
- PAN and Aadhaar of the donor and donee; photographs;
- Proof of relationship where the Rs 200 duty is claimed (birth certificates, marriage certificate);
- Two witnesses with identity proof.
Step by step
- Draft the gift deed: description of the property, the relationship, a clear statement that the gift is voluntary and without consideration, and the donee’s acceptance.
- Pay the stamp duty and registration fee online.
- Book an appointment at the Sub-Registrar’s office where the property is situated.
- The donor, donee and two witnesses attend with originals; photographs and thumb impressions are taken and the deed is registered.
- After registration, apply to the housing society to transfer the share certificate and membership, and to the municipal corporation and land records office to update the name.
Gifts under Muslim law (hiba)
Under Muslim personal law, a gift (hiba) can be made orally if there is a declaration by the donor, acceptance by the donee, and delivery of possession. The Supreme Court in Hafeeza Bibi v. Shaikh Farid (2011) held that a hiba does not become invalid merely because it is not registered. In practice, a written and registered memorandum of the hiba is still advisable for a flat or land, since societies, banks and the municipal corporation will ask for a registered document.
Can a gift deed be cancelled?
A completed gift cannot be taken back simply because the donor has changed their mind. Under Section 126 of the Transfer of Property Act, it can be suspended or revoked only:
- on the happening of a condition agreed by both parties in the deed, which does not depend on the donor’s will alone; or
- on grounds that would allow a contract to be rescinded, such as fraud, coercion or undue influence, usually by filing a suit.
Senior citizens. Section 23 of the Maintenance and Welfare of Parents and Senior Citizens Act, 2007 allows a senior citizen who transferred property on the condition that the transferee would provide basic amenities and look after them to have the transfer declared void by the Maintenance Tribunal if the transferee fails to do so. In Urmila Dixit v. Sunil Sharan Dixit (January 2025) the Supreme Court called for a liberal reading of this protection and upheld cancellation of a gift deed. Courts look for such a condition in the deed or in the circumstances, so parents who expect care should say so in the deed itself.
Gift deed, will or release deed?
- Gift deed: takes effect now; ownership passes immediately; difficult to undo.
- Will: takes effect only after death; can be changed at any time. See making a will in Mumbai.
- Release deed: used where co-owners give up their share in favour of another co-owner; a release of ancestral property in favour of specified relatives also attracts nominal duty.
Frequently asked questions
Is a gift from my father taxable in my hands?
Gifts received from relatives as defined in the income-tax law are not taxed in the recipient’s hands. Take advice for gifts from others.
Can I gift a flat that still has a home loan on it?
The lender’s consent is normally needed, because the flat is mortgaged. Check the loan terms first.
Can I keep the right to live in the flat after gifting it?
Yes. The deed can reserve a right of residence or a life interest for the donor. This should be drafted carefully.
See also: registering a sale deed in Maharashtra and property matters.
Free tool: Gift deed stamp duty calculator. Work out the stamp duty and registration fee for your gift.
See also: Senior Citizens Act: cancelling a gift deed when care stops.
Consultations are by appointment. To fix a time, telephone +91 99301 50560 or send a message on WhatsApp.
This guide describes general law and procedure as understood in October 2026. It is not legal advice; stamp duty and fees change, so confirm current rates with the Sub-Registrar before acting.