What it really costs to gift a Delhi property to family, why Delhi gives no blood-relation discount that other states advertise, the income-tax exemption that does the heavy lifting — and when a will or relinquishment deed beats a gift entirely.
Gift deed stamp duty in Delhi is charged at the full conveyance rates — 4% if the recipient is a woman, 6% if a man, 5% if joint — computed on the higher of the circle-rate value or market value, plus 1% registration fee (and a nominal ₹100 pasting charge). Crucially, Delhi offers no concession for gifts between blood relatives — unlike Uttar Pradesh (₹5,000 cap) or Maharashtra (₹200 token duty for close family). Gifting a ₹5 crore Greater Kailash floor to your son therefore costs roughly ₹35 lakh in duty and fees. The relief sits on the income-tax side instead: gifts of property from relatives are fully exempt from income tax in the recipient’s hands.
The gift deed is South Delhi’s favourite instrument for moving property between generations while everyone is alive to see it — and the most misquoted, because articles written for other states promise family discounts Delhi simply does not give. Consequently, here is the accurate 2026 position: the real stamp duty math, the registration mechanics under Section 123 of the Transfer of Property Act, the income-tax rules that actually decide whether gifting makes sense, and the honest comparison against a will and a relinquishment deed.
Because Delhi charges conveyance-grade duty on gifts, the gift deed competes on certainty, not cost. Here is how the three family-transfer instruments actually stack up for a Delhi property:
| Question | Gift deed | Will | Relinquishment deed |
|---|---|---|---|
| When does ownership move? | Immediately, on registration and acceptance | Only on death | Immediately — but only between existing co-owners |
| Stamp duty | 4–6% of higher of circle/market value | Nil (nominal charges only) | Duty on the share relinquished — typically far less than a full-value gift when consolidating inherited shares |
| Registration | Compulsory (Sec 123 TPA) | Optional but advisable | Compulsory |
| Can it be reversed? | Effectively no — an unconditional registered gift is irrevocable | Freely, any time before death | No |
| Dispute resistance | Highest — done, registered, mutation follows | Lowest — wills invite challenges | High, within its narrow use case |
| Best suited for | Settling a specific property on a specific person, now | Whole-estate planning at zero present cost | Consolidating inherited co-ownership, as our inheritance guide explains |
The gender point deserves emphasis: gifting to a daughter, wife or mother prices at 4% against 6% to a son — on a ₹5 crore floor, a ₹10 lakh difference for the same signature. Families settling property on the next generation increasingly route ownership to daughters and daughters-in-law for exactly this reason, the same arithmetic that runs through our stamp duty guide.
Circle-rate value ₹4.2 crore, market value ₹5 crore — duty computes on the higher figure, ₹5 crore. Stamp duty at 4% (woman donee) = ₹20,00,000; registration at 1% = ₹5,00,000; pasting ₹100. All-in: ₹25,00,100 — against ₹35,00,100 had the same floor gone to a son at 6%. Income tax on the daughter: nil, because a parent is a “relative” under Section 56(2)(x). Her cost of acquisition and holding period for a future sale: inherited from the parents, exactly as with inheritance.
The donor must hold clear, marketable title — run the same checks as a sale. Confirm the donee is a “relative” under tax law before assuming exemption.
A gift under Section 122 requires the donee’s acceptance during the donor’s lifetime — the deed should record it expressly. Keep the gift unconditional; conditions breed litigation.
4%/5%/6% by donee gender on the higher of circle or market value — undervaluing invites impounding and penalty just as with a sale deed.
Donor, donee and two witnesses appear with ID and title papers; biometrics and photographs as in any Delhi registration. Without registration the gift of immovable property is void — no exceptions.
MCD mutation, property tax (UPIC), electricity and water move to the donee — the same housekeeping as our mutation guide sets out.
Stamp duty is the toll; income tax is where gifting is won or lost. From a relative — spouse, siblings of self or spouse, lineal ascendants and descendants of self or spouse, and their spouses — a gift of immovable property is wholly exempt in the recipient’s hands, whatever its value. From a non-relative, if the stamp-duty value exceeds ₹50,000, the entire stamp-duty value is taxed as the recipient’s income at slab rates — which makes gifting property outside the family a tax event of the first order. Two further wrinkles matter in practice: clubbing — income from property gifted to a spouse (or minor child) is taxed back in the donor’s hands, so gifting the rental floor to a spouse saves nothing on rent; and capital gains carry-over — the donee steps into the donor’s cost and holding period, so the eventual sale is taxed as if the family had held throughout, per our capital gains guide. NRI family members can receive Indian immovable property by gift from relatives; the FEMA overlay is covered in our NRI guide.
Handing over an unregistered gift deed — often on ₹100 stamp paper, often notarised, often framed on a wall. Section 123 is absolute: a gift of immovable property takes effect only through a registered instrument signed by the donor and attested by two witnesses. An unregistered gift conveys nothing, however old, however affectionate — and it surfaces at the worst moment, when the “owner” tries to sell and the buyer’s lawyer finds the chain broken. If such a deed exists in your family, cure it now, while the donor can still sign.
Delhi charges full duty on love. Pay it once, register it properly, and the family never litigates it.
No. Delhi charges the standard conveyance rates — 4% for a woman donee, 6% for a man, 5% joint — regardless of relationship. Articles promising ₹200 or ₹5,000 family gifts describe Maharashtra and Uttar Pradesh, not Delhi.
On the higher of the circle-rate value or the market value of the property — the same rule as a sale deed. Understating value risks impounding and penalty at adjudication.
Not if the donor is a “relative” — spouse, siblings of either spouse, lineal ascendants or descendants of either spouse, and their spouses. From anyone else, a property whose stamp-duty value exceeds ₹50,000 is taxed in full as the recipient’s income.
An unconditional registered gift, once accepted, is effectively irrevocable — revocation needs grounds like fraud, coercion or a revocation condition written into the deed itself. Treat signing as final, because the law does.
Not for immovable property. Section 123 TPA requires a registered instrument; notarisation is not registration. An unregistered gift deed conveys no title at all.
A will costs nothing today and stays revocable, but operates only at death and invites challenge. A gift costs 4–6% now and is final — ownership moves immediately and disputes largely die. Families choose gifts for certainty on a specific property, wills for whole-estate flexibility; many sensibly use both.
Yes — an undivided share can be gifted by registered deed at the same rates on that share’s value. Between existing co-heirs of an inherited property, compare a relinquishment deed first; for consolidation within the family it is often the cleaner instrument.
Capital gains computed with the donor’s original cost and combined holding period — the gift defers no gains tax, it only changes whose return pays it. Long-term gains currently run at 12.5%, with the indexation option for older acquisitions.
Yes — NRIs and OCIs can receive Indian immovable property (other than agricultural land) by gift from relatives. Registration, stamp duty and the tax exemption operate identically; repatriation on a later sale follows FEMA limits.
Yes — apply to MCD with the registered gift deed so the tax record moves to the donee, then update UPIC, electricity and water. Mutation evidences the record, not title; the registered deed is the title.
Gift, will or relinquishment — we help families pick the instrument, verify the title and complete the paper trail. Discreet and honest, always.
Stamp duty rates (4%/5%/6% plus 1% registration) reflect Delhi’s conveyance schedule applied to gift deeds as of July 2026, computed on the higher of circle-rate or market value; Delhi has notified no relation-based concession. Tax positions follow Sections 56(2)(x), 122–123 TPA and the capital-gains regime in force since July 2024, as carried into the Income-tax Act, 2025 framework. Verify current rates at doris.delhigovt.nic.in and take legal and tax advice for your matter.
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