Stamp duty on a gift deed in West Bengal is 0.5% of market value, capped at ₹1,000, when the donee is a member of the donor's family, and the full conveyance rate of about 5% to 7% when the donee is not. On top of the stamp duty, a registration fee of about 1% of market value is payable. A gift of immovable property must be registered, or it is not valid at all.
People often treat "stamp duty" and "registration fee" as one figure. They are two separate charges collected at the same time. Getting the split right matters, because the family concession reduces one of them and leaves the other untouched.
The two charges are not the same
Stamp duty is a tax on the instrument. It is levied under the Indian Stamp Act, 1899 as applied in West Bengal, and the rates sit in Schedule IA of that Act. The registration fee is a charge for recording the document in the register of the sub-registrar, and it comes under the Registration Act, 1908 and the rules made under it. The duty makes the document enforceable evidence; the registration fee makes the transfer a matter of public record. Both must be paid, and both are calculated on the same base, namely the market value of the property.
The concession for family gifts applies only to the stamp duty. The registration fee of about 1% continues to be charged, so a gift to a family member still carries a real cost. Where the property is worth ₹50,00,000, the duty may be capped at ₹1,000 but the fee will be around ₹50,000.
Who is a member of the donor's family
The concessional rate is worded around a "member of a family", not around the looser idea of a blood relative. The relationships that fall inside the expression are the closest ones:
- A spouse, and the parents of either party.
- Sons and daughters, including a married daughter, and grandchildren.
- A son's wife, that is a daughter-in-law.
- Brothers and sisters.
The list has some counter-intuitive corners. A spouse is inside the family even though not a blood relative. A cousin, however close in blood, is usually outside and is charged as an outsider. Because a borderline relationship can swing the cost by several lakhs, the correct course is to check the current explanation to Article 33 before the deed is drafted, rather than to rely on a general rule of thumb.
A gift outside the family is charged as a conveyance
| Donee | Stamp duty | Registration fee |
|---|---|---|
| Member of the donor's family | 0.5% of market value, capped at ₹1,000 | about 1% |
| Anyone else, municipal or corporation area | about 6% up to ₹1 crore, 7% above | about 1% |
| Anyone else, panchayat area | about 5% up to ₹1 crore, 6% above | about 1% |
The block above shows why the relationship is the deciding fact. A gift to a friend, a nephew or a business associate is not a cheap way to transfer property. It is charged like a sale, and the department watches for gifts that are in substance sales with the price hidden.
How the amount is calculated and paid
The base for both charges is the higher of the value stated in the deed and the market value assessed by the registering officer. The department runs an online market-value assessment, and the figure it produces is the floor. Declaring a lower price in the deed does not lower the charge, and it invites a demand for the difference.
You raise an e-requisition through the state registration system, select the instrument type as a gift, and state the relationship. The system computes the duty and the fee. Where the duty exceeds ₹10,000 or the fee exceeds ₹5,000, you must pay electronically through GRIPS; smaller amounts can be handled differently. The e-assessment slip that the system produces is the authoritative record of what was assessed.
Conditions for a valid gift under the Transfer of Property Act
The Transfer of Property Act, 1882 governs the gift itself. For immovable property the transfer must be made by a registered instrument. The gift must be of existing property and must be accepted by the donee, with acceptance signified during the donor's lifetime and while the donor is still capable of giving. A gift of future property is not valid, and a gift that is not accepted never takes effect. These are not technicalities that can be tidied up afterwards; they decide whether the donee ever becomes the owner.
Revocation is narrow. A gift once made and accepted can generally be revoked only on a ground the law permits, such as a condition that the gift would be void if not acted upon, or fraud. A donor who simply changes their mind cannot recover the property. That is why a gift should be a considered step, not a hurried one, and it is worth seeing a lawyer before signing.
A gift deed for immovable property in West Bengal should identify the parties precisely, describe the property by its municipal holding number or by mouza, khatian and plot, recite the donor's title, and state that the transfer is a gift made voluntarily and without consideration. It should also record the donee's acceptance, because acceptance is what makes the gift complete. Vague descriptions of the property are a common cause of objections at the sub-registrar's office.
The deed should also state the market value on which the duty and fee are assessed, and the relationship between the parties where the family rate is claimed. If the relationship is misstated, the assessment is wrong and the deficit can be recovered later.
A gift is not a will
People sometimes use the two words interchangeably, but a gift and a will do different things. A gift transfers the property immediately and finally, so the donor gives up ownership now. A will takes effect only on death and can be changed at any time before then. A gift cannot be used to keep control of the property while pretending to transfer it, and a will cannot be registered as a present transfer.
Because a gift is immediate, it should not be used to pass on property that the donor may still need, or that is the subject of a family dispute, without advice. Once registered and accepted, the transfer is very hard to unwind, and the stamp duty already paid is not refunded.
The stamp duty and the registration fee are state charges on the instrument and on the public record. Whether a gift also attracts tax for the donor or the donee under the Income-tax Act, 1961, is a different question that depends on the relationship and the value, and it should be put to a tax professional. This guide deals only with the stamp duty and registration charges payable in West Bengal.
Gift, partition and settlement compared
Families dividing property often choose between a partition and a set of gifts, and the two are not the same instrument. The table below sets out when each is used and what it costs.
| Instrument | Typical stamp duty | Use |
|---|---|---|
| Gift to a family member | 0.5%, capped at ₹1,000 | voluntary transfer to a close relative |
| Gift to an outsider | conveyance rate, 5% to 7% | transfer to a non-relative |
| Partition | 0.5% of the separated share | dividing property among co-owners |
| Sale or conveyance | 5% to 7% | transfer for money |
The right choice depends on who holds title today and what the family intends. That is a question to settle with a lawyer before any document is drawn, because the wrong instrument can be refused at registration, and the cost of starting again is real.
Common errors on a gift deed
- Treating the stamp duty and the registration fee as one sum, and under-providing funds.
- Claiming the family rate for a cousin, a nephew or a friend who is outside the defined family.
- Omitting the donee's acceptance, which leaves the gift incomplete.
- Leaving the deed unregistered, which makes the transfer void.
- Failing to mutate the property after registration, so the records never catch up.
Most gift deeds that are rejected or challenged fail on one of these points rather than on the amount of duty. A short review before signing avoids all of them, and it is far cheaper than a deficit notice afterwards.
A short checklist before you register
- Confirm, from the current text of the schedule or the sub-registrar, that the relationship qualifies for the family rate.
- Obtain the assessed market value and calculate both the duty and the fee on it.
- Keep the title documents, identity proofs, tax receipts and land record ready.
- Make sure the donor and the donee both sign, and arrange two witnesses.
- Plan for mutation after registration so the records follow the deed.
Where title is unclear, the safest sequence is to check title first, as explained in our property title search checklist for West Bengal, then draft the deed, then present it for registration. If the property is being transferred within a family that is also dealing with a succession, the difference between a succession certificate and a legal heir certificate is worth understanding before you decide who signs as donor.