Section 122 of Transfer of Property Act, 1882 defines gift as the transfer of certain existing moveable or immoveable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee. A gift deed for immovable property involves the gifting of some immovable property like a house.
It is mandatory to register a gift deed of an immovable property under Section 17 of Uttar Pradesh Registration Act, 1908. The registration of property requires preparation of documents and paying the applicable stamp duty registration charges for the sale deed to be legally recorded at the Sub-Registrar’s office.
Department of Stamps and Registration manages the registration and transfer of property in Uttar Pradesh. Stamp duty is levied and collected by the state government.
It is the direct tax which is payable under section 3 of the Indian Stamp Act, 1899. A stamp put on the gift deed for transferring the property acts as a legal document to prove your ownership in the court.
The minimum registration fee on a gift is INR 100 and maximum INR 20,000. Stamp duty and transfer duty shall be 6% of the value of the property if the donee is a woman and 7% if the donee is a man.
Reference: Section 122 of Transfer of Property Act, 1882, Section 17 of Uttar Pradesh Registration Act, 1908, and Section 3 of the Indian Stamp Act, 1899