In West Bengal a gift of immovable property to a member of the donor's family is stamped at a much lower rate than a gift to an outsider, but the deed is still not complete until it is registered. The concessional rate applies when the recipient falls within the relationships the stamp law treats as family — broadly the spouse, parents, children, grandchildren, brothers and sisters. The exact amount depends on the rate in force, the market value of the property and the area, so the current schedule should be confirmed before you draft.
Why gift deeds are treated differently
A gift is a transfer of ownership without consideration. The law does not want families to pay the full sale-deed rate simply because property passes between relatives without money changing hands, and so the stamp schedule gives gifts within a family a lower duty. A gift to a person outside that circle, by contrast, is treated as a conveyance and attracts the full sale-deed rate, because it is economically similar to a sale. The whole calculation, therefore, begins with one question: is the recipient a member of the donor's family.
The concession is not a loophole and it is not automatic. It applies only to a genuine gift, that is, to a voluntary transfer with no consideration. A deed that is really a sale dressed up as a gift, or a gift that is part of a commercial arrangement, is treated for stamp purposes as the transaction it actually is, and the full duty becomes payable. The registering officer looks at the recitals and the surrounding facts, not merely at the title of the document.
The law that applies
Three statutes work together. The Indian Stamp Act 1899, as it applies in West Bengal with state amendments, fixes the stamp duty on the instrument; the relevant article of the schedule gives the rate for a gift and its explanation defines who is a member of a family. The Transfer of Property Act 1882 governs the transfer itself: Section 122 defines a gift, Section 123 requires that a gift of immovable property be effected by a registered instrument, and Section 126 deals with when a gift may be revoked. The Registration Act 1908 makes registration compulsory for a gift of immovable property under Section 17, gives four months to present it under Section 23, and provides in Section 49 that an unregistered gift is inadmissible as evidence of the transfer.
The practical upshot is that a gift deed which is properly drafted and stamped but never registered transfers nothing. The stamp and the registration are two separate steps, and skipping either defeats the transaction. A donee who has paid for the stamp but not registered the deed has no title he can enforce.
Who counts as a member of the family
People search for “blood relation”, but the statute uses the phrase “member of a family” and defines it by a list of relationships. The list covers the closest ties: a spouse, parents, children and grandchildren, a son's wife, and brothers and sisters. A spouse is plainly within it even though a spouse is not a blood relative, which is why the loose phrase can mislead. What matters is the relationship named in the explanation to the relevant article of the schedule, not the everyday meaning of “blood relation”.
Because the explanation is specific, a gift to a cousin, nephew or niece, or to a relation by marriage other than a spouse or a son's wife, may fall outside the concession and be charged at the full conveyance rate. If the relationship is not clearly within the list, treat the deed as an ordinary conveyance for stamping purposes unless you have confirmed otherwise with the registering office.
Relationships that are one or two steps removed deserve particular care. A gift to a daughter's husband, or to a spouse's brother, may or may not be within the defined list, and the answer can change the duty by a large margin. When the amount is significant, it is worth obtaining a written indication from the registering officer before you finalise the deed.
How the duty and the registration fee are worked out
Two payments are involved, and they go to different heads. The stamp duty is charged on the market value of the property or, where stated, on the consideration, and it is higher in municipal and corporation areas than in panchayat areas because of a surcharge. The registration fee is a separate percentage payable to the registering officer. For a gift within the family West Bengal has historically kept the duty very low, with a nominal rate and a ceiling, while a gift to a non-relative is charged at the full conveyance rate of roughly five to seven per cent depending on the area and value. Because rates are revised from time to time, the exact figure should be checked against the schedule in force on the date of execution.
| Item | Basis of charge |
|---|---|
| Stamp duty, gift to a family member | Concessional rate on the market value, subject to a ceiling; confirm the current schedule before drafting. |
| Stamp duty, gift to a non-relative | Full conveyance rate on the market value, higher in municipal or corporation areas. |
| Registration fee | A separate percentage of the market value, paid to the registering officer. |
| Surcharge | Extra duty where the property lies within a municipal or corporation area rather than a panchayat area. |
Paying the stamp duty and doing the registration online
West Bengal now handles most of the process electronically. Stamp duty is commonly paid through the government receipt portal and the resulting e-stamp certificate is affixed to the deed, so you can complete the payment without buying physical stamp paper. Registration appointments are booked online on the state's registration portal, where you select the registering office, the date and the time, and upload the details of the instrument. On the appointed day you present the signed and stamped deed at the office of the District Registrar, the Additional District Sub-Registrar or the sub-registrar having jurisdiction over the property, in the presence of the executant and two witnesses.
- Draft the gift deed, keeping the donor's and donee's details and the property description exact.
- Work out the market value and the stamp duty, and pay it online to obtain the e-stamp.
- Book a registration slot on the online portal for the correct office.
- Attend with the original deed, identity proofs, photographs and two witnesses.
- Collect the registered deed and apply for mutation in the land records.
The digitised land records are available on the state land-records portal, and the registering office feeds the transaction into the registration system, so the two records can be reconciled once mutation is done. Keep the portal receipts as well: they are the proof of what was paid and when, and they are useful if a query later arises about the value or the date. The same logic of a public register underpins other certificates, and our guide to the digital birth certificate from the Kolkata Municipal Corporation shows how a register entry is turned into an official document.
The four-month rule for presenting the deed
Section 23 of the Registration Act 1908 requires the instrument to be presented for registration within four months of its execution. If you miss that window, Section 25 allows the document to be accepted within a further period, up to four months more, on payment of a fine and at the discretion of the registering officer. Beyond that the deed may have to be re-executed.
This is why the date of execution should be set only when the parties and the witnesses are ready to attend, and not left to drift. A deed executed and then kept aside while the stamp or the appointment is arranged is a common cause of difficulty, especially where one of the parties later becomes unavailable. Register the deed as soon as it is executed and stamped.
What to do after registration
Registration alone does not change the name in the revenue records. For agricultural land you apply for mutation before the Block Land and Land Reforms Officer, and for municipal property before the Kolkata Municipal Corporation or the relevant municipality. The mutation order records the donee as the person liable to pay rates and taxes and makes the title publicly traceable. Keep certified copies of the registered deed, the e-stamp receipt and the mutation order together; that bundle is what a buyer, a bank or a court will ask for years later.
A gift to a blood relative in West Bengal is therefore a two-part exercise — the right stamp and a registered deed — followed by mutation. If you would rather have the deed drafted and the online steps handled for you, you can book a free consultation with our office in Kolkata. Our guide on lawyer fees in Kolkata explains how professional charges are separated from stamp duty and registration fees, and our services page lists property and registration work.