In West Bengal, a gift of immovable property to a member of the donor's family attracts stamp duty of 0.5% of the market value of the property, subject to a maximum of ₹1,000. That ceiling was inserted by the West Bengal Finance Act, 2024 and applies to instruments executed on or after 15 June 2024. On top of the duty, a registration fee of about 1% of the market value is payable to the registering officer.
A gift to a person who is not a member of the donor's family is treated as a conveyance and pays the full sale-deed rate: about 5% of market value in panchayat areas, 6% in municipal and corporation areas, and one percentage point more where the value exceeds ₹1 crore. The difference between the two rates is therefore enormous, and almost every query about gift deed duty in West Bengal turns on one question: who counts as family.
The rule says "member of a family", not "blood relative"
The phrase used in the statute is not "blood relation". Article 33 of Schedule IA to the Indian Stamp Act, 1899, as it applies in West Bengal, gives the concessional rate for a gift to "a member of a family", and an explanation to the article sets out which relationships fall inside that expression. People search for "blood relation" because that is how the concession is usually described in conversation, but the wording that actually governs is narrower in one direction and wider in another.
The expression covers the closest relationships: a spouse, parents, children and grandchildren, a son's wife, and brothers and sisters. A spouse is plainly within the family even though a spouse is not a blood relative at all. A cousin or a nephew, by contrast, is a blood relative but may fall outside the defined family and be charged at the full conveyance rate. That is why an advocate will not answer this question from a relationship chart alone. The exact explanation to Article 33 is read against the facts before a deed is drafted, because the cost of being wrong can run into lakhs.
What the concession saves on a simple example
Because both the duty and the fee are calculated on market value, the relationship changes the bill dramatically. The table below shows the position on a property with a market value of ₹60,00,000.
| Recipient | Stamp duty | Registration fee (about 1%) | Approximate total |
|---|---|---|---|
| Member of donor's family | 0.5%, capped at ₹1,000 | ₹60,000 | about ₹61,000 |
| Outsider, municipal or corporation area | 6% = ₹3,60,000 | ₹60,000 | about ₹4,20,000 |
| Outsider, panchayat area | 5% = ₹3,00,000 | ₹60,000 | about ₹3,60,000 |
Two points follow from the table. First, the family concession has no ₹1 crore step. The additional 1% that applies to sales above ₹1 crore belongs to conveyances, and it does not disturb the capped family gift rate. Second, the registration fee is not reduced by the concession, so on a family transfer the fee is usually the larger of the two government charges. A common mistake is to assume that because the stamp duty is only ₹1,000, the whole transaction will cost ₹1,000. It will not.
Registration is compulsory, and it is what transfers title
A gift of immovable property is not valid unless it is made by a registered instrument. That is the rule in Section 123 of the Transfer of Property Act, 1882, read with Section 17 of the Registration Act, 1908, which makes registration compulsory for a document that transfers an interest in immovable property. An unregistered gift deed, however carefully drafted and however sincere the intention, transfers nothing at all. The donee does not become the owner, and stamp duty paid on an unregistered deed does not repair the defect.
Acceptance matters too. Under the Transfer of Property Act, 1882 a gift takes effect only when the donee accepts it, and where the property is immovable, acceptance must be signified during the lifetime of the donor and while the donor is still capable of giving. A completed and registered gift cannot simply be undone because the family has changed its mind; revocation is allowed only on a ground the law recognises.
How the duty and fee are worked out and paid
Stamp duty in West Bengal is charged on the market value of the property as assessed by the registering officer, not merely on the value stated in the deed. The assessing tool is the online market-value assessment maintained by the Directorate of Registration and Stamp Revenue, reached through the state registration portal. If the value you declare is lower than the assessed value, the deficit is recoverable later, and proceedings under Section 47A of the Indian Stamp Act, 1899, for undervaluation are a real risk.
Practically, the process runs through the state's online system, commonly reached at wbregistration.gov.in and through the e-Nathikaran service. You prepare an e-requisition, the system computes the duty and the fee, and you pay. Where the stamp duty exceeds ₹10,000 or the registration fee exceeds ₹5,000, payment must be made electronically through GRIPS rather than with physical stamp paper.
- Obtain the property's assessed market value for the relevant mouza, khatian and plot, or the municipal holding, before you fix any figures in the deed.
- Select the correct instrument type, namely a gift, and enter the relationship accurately on the e-requisition, because the relationship is what selects the rate.
- Pay both the stamp duty and the registration fee, and preserve the e-receipts and the e-assessment slip, which together are proof of what was assessed.
Because the individual figures and the online steps are updated by notification from time to time, the current schedule and the current portal flow should always be confirmed at the sub-registrar's office before you execute the deed. The kind of deed that is used is set out in our guide to the gift deed format for West Bengal.
Documents and steps for a family gift in West Bengal
A registration refused because a document is missing costs more in time and fees than the stamp duty itself, so gather the papers first. For a gift of a flat or land inside West Bengal the usual set is:
- Original title deeds of the donor, and the chain of documents proving title.
- Proof of identity and address of both the donor and the donee, with PAN where the transaction is large.
- The gift deed, drafted on appropriate stamp paper or executed after electronic stamping, signed by both parties.
- Latest property tax receipt, and for land the record from Banglarbhumi showing the plot and the present holder.
- Two witnesses to the execution, and photographs where the registering officer requires them.
The deed is then presented at the sub-registrar's office for the district and sub-district where the property lies. The parties or their authorised agents appear, the officer verifies identity and admits the document, and the registered deed is returned or made available digitally. Keep the original registered deed safely: it is the document a bank, a buyer or a court will ask for later.
After registration: mutation and records
Registration changes the owner on the deed; it does not, by itself, change the municipal or land record. After the gift is registered, apply for mutation so that the property tax and the land records show the donee. Inside Kolkata that is the Kolkata Municipal Corporation; elsewhere it is the relevant municipality, and for land, the office of the Block Land and Land Reforms Officer. Land records are corrected through Banglarbhumi. A deed that is registered but never mutated leaves the donee exposed when the next sale, loan or partition is attempted.
Common mistakes that trigger a deficit-duty demand
- Assuming "blood relative" and "member of a family" mean the same thing, and claiming the 0.5% rate for a cousin or a nephew.
- Overlooking the registration fee because the stamp duty is capped.
- Declaring a value below the assessed market value to lower the fee.
- Leaving the deed unregistered, which makes the transfer void.
- Using a gift to pass on what is in substance a sale for money, which the department may treat as a disguised conveyance and charge the full rate with penalty.
If the department finds that the transaction was undervalued, or that the concessional rate did not apply, it can demand the deficit duty. Because that risk can run to lakhs, the relationship and the valuation should be settled before the deed is signed. Where the facts are close, a short consultation before drafting is far cheaper than a demand after registration; you can book a free consultation to have the relationship and the valuation checked first.