Registration of Gift Deed in India

If you are here looking to understand how to register a Gift Deed, there is a fair chance you know all about creating the deed itself. However, if you are looking for the last but surely not the least important of aspects, which is the registration, here is all you need to know.

Every Gift Deed needs to go through profiling from a lawyer well-versed in the knowledge of the transfer of properties and contracts, after which you refer to a Stamp Vendor to find which Stamp Paper is suitable for you and the taxes to be paid simultaneously. After all of which you head to the Sub-Registrar Office.

Now, you may be wondering if there is a way around registration, where you could entirely skip the process – however, keeping each individual’s interests as a priority, the government has made the registration of a gift deed (only immovable property) compulsory.

Transfer Of Property Act, 1882, encompasses all that is to be ensured concerning the drafting of a Gift Deed, and The Registration Act, 1908 deals with the rules and legal limitations regarding the registration of all contracts and deeds in its entirety.

How To Register A Gift Deed?

Before proceeding to registration, make sure your deed is drafted in accordance with the law, and also the wishes of the Donor and the Donee. The break up for the procedure of registration can be done as follows-

  1. Sign the Deed (both the Donor and the Donee) in the presence of 2 witnesses and take the signed document to the nearest Sub-registrar Office. When saying ‘nearest’, it refers to the Sub-Registrar Office nearest to the immovable property.
  2. Calculate the Registration charges with the help of lawyers or consult to get an accurate measure.
  3. Pay the registration charges stipulated and get the deed attested.

Is Registration Necessary?

Any Gift Deed, movable or immovable, if contested in court will stand as an upholding or supporting evidence only if it is registered. Although the Gift Deed of a Movable property doesn’t mandate registration in the Transfer of Property Act, you may or may not register. However, it is important to remember that an unregistered Gift Deed is not legally secure.

On the other hand, the transfer of an immovable property under Chapter 17 (a) of The Registration Act, 1908 the Gift Deed instrument is made compulsory.

Also, registration begs the assent of both the parties, i.e., the Donor and the Donee.

There may be instances where you might want to gift an expensive car, villa or a property and chances though few, are the Donee may refuse to accept the Gift. Apart from rendering the Gift Deed void from the beginning, it cannot be registered.

Registration Charges In Metro Cities

Before registration, the property has to be valued through a proper valuer who is specialised in determining the market price of a property. Based on the market price the registration charges will be levied.

New Delhi Registration fee is 1% of the total value along with ₹ 100 pasting charges.
Bangalore Registration Charges are 1% of the market value of the property.Fixed Registration fee of ₹ 500

₹ 1,570 when included the charges of scanning, endorsement, comparing, filing, record of rights, and postage fee.

Mumbai Registration fee chargeable when the Donee is a family member is ₹ 200Registration fee chargeable when the Donee is not a family member will be 1% of the market value of the property or ₹ 30,000, whichever is less.
Chennai Registration fee chargeable is 1% of the market value of the property.

Depending on the state you reside in, you are requested to make payment either through Demand Draft (DD), Cheques or through cash at the respective Sub-Registrar Office.

Registration of a Gift Deed made to several Donees where one of the beneficiary refuses to accept the Gift, the deed is void to the limits of the part of the property that was conferred to the party that refused the Gift. While for the rest, the registration holds.