When you gift immovable property to a blood relation in West Bengal, the stamp duty and the registration charge are lower than on an ordinary sale, because the state allows a concessional rate for gifts to specified relatives. The exact amount depends on the market value of the property and on the schedule in force on the date of registration, so it should be computed then, not from an old figure found online.
What makes a transfer a gift in law
- Section 122 of the Transfer of Property Act 1882 defines a gift as a transfer of property made voluntarily and without consideration, accepted by the donee.
- Section 123 requires a gift of immovable property to be made by a registered instrument, signed by the donor and attested by at least two witnesses.
- Section 126 limits revocation: a gift may be revoked only on grounds that the deed itself states, and only as to the whole or part of the property, not as a substitution.
- A gift is complete only when the donee accepts it. Acceptance is usually recorded in the deed itself.
Who counts as a blood relation for the concessional rate
The concessional rate applies only to gifts made to relatives of a kind specified in the stamp schedule. This is a narrower list than the general idea of family, and a relationship that feels close may still not qualify. Spouse, children including adopted children, parents and siblings usually fall within the recognised categories, and the schedule may extend to grandparents and grandchildren; the precise definition governs, and it should be checked on the day of the transaction.
A gift to a friend, a relative by marriage who is not within the defined categories, or an unrelated person does not attract the concessional rate and is charged on the conveyance scale, as though it were a sale. Whether a particular relationship qualifies is a question of the definition in the schedule, not of how near the people feel to each other.
How the charges are computed
There are two main components, and they should be considered separately. The first is stamp duty, computed on the value of the property; for a gift there is no consideration, so the market value governs. The second is the registration fee. The concessional rate, where it applies, is normally given on the stamp duty; not every fee follows the relationship.
| Component | Basis | Note |
|---|---|---|
| Stamp duty | Market value of the property | Concessional for gifts to relatives within the notified categories |
| Registration fee | Per the current schedule | Confirm the rate in force on the date of registration |
| Mutation fee | Transfer of ownership records, e.g. KMC or the municipality | Separate from registration |
| Society or association transfer fee | The rules of the society | Not a statutory charge |
The rates are revised from time to time. Rather than rely on a number from an old article, confirm the current schedule with the Directorate of Registration and Stamp Revenue, or compute it through e-Nathikaran on the day you pay. Where the gift is of a flat, the society transfer fee and the mutation charge are additions that people often overlook when they budget for the transaction.
Why the market value decides the bill
The registering officer refers to the minimum value register, the published rates for the locality, or the last recorded transaction. If the value stated in the deed is lower than that benchmark, the officer can start a reference for under-valuation, which means the deed is held up while the correct duty is fixed, and a penalty can follow. Stating a false low value to save duty is a false economy. It is safer to state the market value honestly and, where the value is genuinely low, to keep the material that supports it.
How to register a gift deed in West Bengal
- Draft the gift deed, setting out the donor, the donee, the property, the relationship and the acceptance.
- Compute the stamp duty and registration fee on the current schedule.
- Pay the duty and fee and book the registration appointment through e-Nathikaran.
- Appear before the registering officer with the donor, the donee and the two witnesses, producing the original title deed and the identity proofs.
- Have the signatures and biometrics recorded; the officer endorses the certificate of registration.
- Collect the registered deed and keep it with the earlier title papers.
Documents you will need
- The original title deed of the donor, or other proof of ownership.
- Identity and address proof of both the donor and the donee.
- Proof of the relationship, such as a ration card or family records, where the concessional rate is claimed.
- The latest property tax receipt and the mutation record.
- Two witnesses with their identity proof.
- Passport-size photographs of the parties.
Points that catch people out
- A gift is irrevocable except on the narrow grounds in Section 126. Do not gift property on the belief that you can take it back later.
- If the donee does not accept, there is no gift, however the deed is worded.
- A gift made to defeat creditors, or to defeat an order of a court, can be challenged.
- A transaction that is really a sale dressed up as a gift will be taxed as a sale; the officer looks at the substance, not the label.
- The income tax treatment of gifts is a separate question from the stamp duty. The legal limits and exemptions change, so take advice from a tax adviser before structuring the transfer.
A gift transfers ownership now. A settlement is also a transfer without consideration, but it is usually made for a defined purpose, such as providing for a family member, and it can be revocable or irrevocable depending on its terms. A will transfers nothing during the lifetime of the owner; it takes effect only on death. Where the intention is to part with ownership during your life, a gift is the instrument, and it is registered immediately. Where the intention is to keep ownership until death, a will is the right document, and it does not attract stamp duty as a gift does.
The deed itself should record the essentials, so that the officer and the registry can see them on the face of the document.
- The full names, addresses and relationship of the donor and the donee.
- A clear description of the property, matching the title deed.
- A statement that the transfer is voluntary and without consideration.
- The acceptance of the gift by the donee, which completes it.
- The signature of the donor, and attestation by two witnesses.
The relationship should be stated carefully, because it is the basis of the concessional rate. Recording a relationship that does not fall within the defined categories, or leaving it out altogether, invites the officer to charge the conveyance rate. If the concession is claimed, keep the proof of relationship, such as a ration card or a birth certificate, with the file.
Gift of a flat: the extra steps
Where the property is a flat, registration is only part of the work. Ownership records must then be mutated, in Kolkata with the Kolkata Municipal Corporation and outside the city with the relevant municipality or panchayat, and the society or association has to be intimated so that its records reflect the transfer. The society may charge a transfer fee under its own rules, and that fee is not part of the stamp duty. Allow for these charges and for the time they take when you plan a gift of a flat, because a registered deed that is not followed by mutation leaves the records inconsistent.
Where the draft, the stamp duty and the appointment are ready, a gift deed is usually registered on the day it is presented, and the registered copy follows shortly after. The time that people underestimate is the preparation: computing the correct duty on the current schedule, arranging proof of the relationship, and, for a flat, completing the mutation and the society intimation afterwards. Plan the whole sequence rather than the registration alone, and keep every receipt, because the mutation office and the society will each ask for their own set of papers.
Next steps
Because the concessional rate turns on two things, the defined relationship and the market value, it is worth getting both checked before the deed is printed. For gift deeds and other property documents in Kolkata, the chamber at 14 Hare Street can review the papers through a free consultation or you can look at the wider range of services. If the property is being let out rather than transferred, our guide to the documents required for online rent agreement registration covers the registration side of that transaction.