Gift Deed
Personal FinanceA gift deed is a legal document transferring ownership of an asset (property, gold, shares) from the giver (donor) to the receiver (donee) voluntarily, without monetary consideration. Gifts from specified relatives are exempt from income tax regardless of amount.
In detail
Tax rules for gifts:nGifts from "relatives" (spouse, siblings, siblings of spouse, parents, grandparents, children): completely tax-exempt, any amountnGifts from non-relatives: if aggregate value above Rs 50,000 in a year, entire amount taxable as incomenGifts on occasion of marriage: completely tax-free from anyonenInheritance (from will or succession): completely tax-freennProperty gift deed: must be registered (stamp duty applies). Gift of property to specified relatives: stamp duty concession available in some states (Maharashtra: 3% vs standard 6%).
Real-life example
Suresh gifts his daughter a flat worth Rs 80L. Daughter pays zero income tax on this gift (father is a relative). Stamp duty: Maharashtra charges 3% (concession for blood relatives) = Rs 2.4L + 1% registration = Rs 80K. Total cost: Rs 3.2L. If the same flat were gifted to a friend: friend pays income tax on Rs 80L as "Other Income."