How to Execute a Gift Deed in Maharashtra | Stamp Duty & Legal Rules

Are you considering gifting property to a loved one in Maharashtra? This comprehensive guide covers everything you need to know about gift deed stamp duty, registration charges, and the process of executing a gift deed in Maharashtra.

What Is a Gift Deed?

A gift deed is a legal document that transfers ownership of a property from one person (donor) to another (donee) without any monetary consideration. The transfer is made out of natural love and affection, and must be accepted by the recipient during the donor's lifetime to be valid.

What Properties Can Be Gifted in Maharashtra?

When gifting property in Maharashtra, you should know that:

• Both movable and immovable properties can be gifted
• The property must be legally transferable
• The property must already exist (not under construction or planned)
• The property should be tangible

Understanding Gift Deed Stamp Duty in Maharashtra

Stamp duty on a gift deed is the tax paid to the government before executing the transfer of an immovable property. In Maharashtra, this is governed by the Maharashtra Stamp Act (also known as Bombay Stamp Act 1958).

Standard Stamp Duty Rates

• For non-family members: 3% of the property's value
• For blood relatives: Only Rs 200 for residential or agricultural properties

Blood Relatives Eligible for Reduced Stamp Duty

Maharashtra offers significant stamp duty rebates when gifting property to the following family members:

• Spouse
• Brother or sister
• Brother or sister of spouse
• Brother or sister of either parent
• Any lineal ascendant or descendant
• Any lineal ascendant or descendant of spouse
• Spouse of persons referred to in points 2-6

Real-Life Example: In 2023, actor Amitabh Bachchan executed gift deeds to transfer his Juhu bungalow "Pratiksha" to his daughter Shweta Nanda. Being a blood relative, he would have paid only Rs 200 as stamp duty instead of several lakhs that would apply for non-relatives.

How to Calculate Gift Deed Stamp Duty in Maharashtra

You can calculate the stamp duty online by following these steps:

1. Visit the official IGR Maharashtra website: https://igrmahhelpline.gov.in/stamp-duty-calculator.php
2. Select "Gift Deed" from the options
3. Choose the appropriate category:
   • Gift deed for agricultural/residential property to immediate family (spouse, children, grandchildren)
   • Gift deed to other family members
   • Gift deed to non-family members
4. Select the property location (municipal corporation, council, cantonment, or gram panchayat)

Example: For a property worth Rs 10,00,000 in Mumbai Municipal Corporation area being gifted to a daughter, the stamp duty would be just Rs 200.

Who Pays the Gift Deed Stamp Duty?

The donor (person giving the gift) is responsible for paying the stamp duty. This is a crucial point because if the donee pays instead, the transaction may be legally interpreted as a sale rather than a gift. In such cases, standard property transfer stamp duty rates would apply, and any family-related rebates would be lost.

Documents Required for Creating a Gift Deed in Maharashtra

To create a valid gift deed, you'll need:

• Identity proof of both donor and donee (PAN Card, Aadhaar Card, Driving License)
• Original property papers or sale deed
• Original gift deed draft
• Passport-size photographs of donor and donee
• Witnesses (typically two)

Process of Executing a Gift Deed in Maharashtra

Follow these steps to complete the gift deed process:

1. Obtain mutual consent between donor and donee
2. Draft the gift deed with professional legal assistance, including details of the donor, donee, and property
3. Visit the local Sub-Registrar Office (SRO) with all required documents
4. Pay the applicable stamp duty and registration charges
   • Option to pay online through the IGR Maharashtra website and submit the payment challan at the SRO
5. The donee must formally accept the gift during the donor's lifetime

Understanding the land records in Maharashtra is essential before executing any property transfer documents.

Impact of Revised Ready Reckoner Rates on Gift Deed Stamp Duty

The Maharashtra government has increased the Ready Reckoner Rate (RRR) by 4.39% for FY 2025-26, effective April 1, 2025. While this affects the calculation of standard property transactions:

• Gift deeds to blood relatives remain unaffected (fixed at Rs 200)
• Gift deeds to non-relatives will be impacted as they pay stamp duty based on property value, which is determined by the RRR

For more information on how Ready Reckoner rates impact property transactions, check our guide on Ready Reckoner Rates in Mumbai.

Tax Implications of Gift Deeds in Maharashtra

Understanding the tax implications of receiving property as a gift is essential:

• Gifts received from blood relatives are generally exempt from income tax
• Gifts exceeding Rs 50,000 in a financial year from non-relatives may be taxable for the recipient
• The recipient must declare such gifts in their income tax returns under "Income from Other Sources"

Proper knowledge of TDS on property transactions in India can help you navigate the tax implications of various property transfers.

Conclusion

Gifting property in Maharashtra involves understanding several legal and financial aspects. While the process offers significant stamp duty benefits for family transfers, proper documentation and adherence to legal requirements are essential to ensure a smooth transfer. Always consult with a legal professional before executing a gift deed to navigate the process efficiently and avoid potential complications.

If you're interested in learning more about stamp duty and registration charges for Indian property buyers, we have a comprehensive guide available.

Frequently Asked Questions

1. Can I gift only a portion of my property to a relative?
Yes, you can gift a specific portion or share of your property, but the gift deed must clearly specify the exact portion being transferred.

2. Is there a limit to how many properties I can gift to my children?
No, there is no legal limit on the number of properties you can gift to your children in Maharashtra.

3. Can NRIs gift property in Maharashtra?
Yes, NRIs can gift their property in Maharashtra to both residents and other NRIs following the same process and paying applicable stamp duty. For more information on NRI property ownership, see our guide on buying property in India as an NRI.

4. Can a gift deed be cancelled once registered?
A registered gift deed cannot be easily cancelled unless there is proof of fraud, coercion, or mental incapacity of the donor at the time of execution.

5. Are there any restrictions on gifting ancestral property?
Yes, ancestral property rights are shared among legal heirs, so all co-owners must consent before gifting such property. Understanding inheritance laws in India is crucial for such transactions.

6. Is it necessary to register a gift deed in Maharashtra?
Yes, registration is mandatory for all immovable property gift deeds in Maharashtra to make them legally valid.

7. How long does the gift deed registration process take?
Typically, the registration process takes 1-2 working days once all documents are submitted correctly.

8. Can a gift deed be executed through Power of Attorney?
Yes, a donor can authorize someone through a registered Power of Attorney to execute a gift deed on their behalf.