True gift deed
Querist :
Anonymous
(Querist) 23 December 2025
This query is : Resolved
Gift without consideration only valid.
Conditional gifts are void.
Some state allowed family gift deeds with concessional rates@.5% Stamp duty. Instead @5% on conveyance.
Section 29 of stamp act say Doner to pay stampduty to avoid QUID PRO QUO.
MY QUERY.
IN A FAMILY GIFT CONDITION WAS INCORPORATED DONEE WILL PAY STAMP DUTY . IS IT OK.
STAMP DUTY PAID BY DONEE@.5%
IS IT CORRECT OR HAS TO PAY@5% .
Collector of stamps issued undervaluation of property in this Gift deed and recovery notice issued due to mis representation of property details.
There are 8 legal heirs Gift done to 2 only.
Is it a settlement Deed of True Gift.
Final question How this Gift deed to looked into. What would be correct rate of stamp duty to be paid.
kavksatyanarayana
(Expert) 23 December 2025
What is your problem? The query seems to be academic or hypothetical. The stamp duty in favour of family members is 2% has to be paid in AP. The stamp duties vary from one state to another.
Querist :
Anonymous
(Querist) 24 December 2025
This is true story. In a gift this has really happened. In state of Chhattisgarh.
Kindly confirm whether donee paying stampduty as per condition of deed makes true gift . Concessional rate is allowed even if donee pays stamp duty which ..5,% in family gift and for settlement deed it's 5% so saving of 4.5% is there ,heavy loss of revenue to government. All this is done to cheat 3 daughters. Value of property in each deed is 2 crore . Daughters are not in position to file Title declaration suit due to High court fee unable to get gift deed cancelled .
T. Kalaiselvan, Advocate
(Expert) 24 December 2025
You may please note that a gift with condition “donee shall pay stamp duty” is valid.
Under section 122 of Transfer of property Act, a gift must be voluntary and without consideration and that the the payment of stamp duty is NOT “consideration”.
Stamp duty is a statutory obligation, not something paid to the donor.
Gift does not become a sale or conveyance merely because donee bears expenses.
Whether concessional stamp duty (@0.5%) is applicable or 5% is payable depends on the State law and has nothing to do with the transfer of property act.
Number of legal heirs is irrelevant for stamp duty, what matters is the relationship between donor and donee and the nature of instrument.
Gift by only some heirs to only some heirs can still be a valid gift, provided the donor had clear, identifiable ownership rights, gift is voluntary and no monetary consideration involved.
In order to establish the Correct stamp duty payable, all the conditions are satisfied viz., Donor–donee are close relatives as per State law, no monetary consideration was passed, proper valuation was assessed and the stamp duty alone was paid by the donee the the concessional gift duty (0.5%) may be treated as correct.
Querist :
Anonymous
(Querist) 24 December 2025
Thanks.
What will happen if deficit stampduty demanded on undervaluation is not paid, can revenue authority cancel mutation if already done ,what will happen on civil suit if filed for cancellations of gift deed
kavksatyanarayana
(Expert) 24 December 2025
If the undervaluation is determined, it will be levied with a penalty after due process. If the donor may file a suit in a civil court for cancellation of a gift deed under some conditions.
Querist :
Anonymous
(Querist) 24 December 2025
Collector of stamps issued demand note u/s 27 without penalty actually it should be u/s 30,33 with penalty up to 10X that was to be paid in 30 days it's more than 3 months not paid. Now RRC may be issued . But finally what revenue authority cancel do ??
T. Kalaiselvan, Advocate
(Expert) 24 December 2025
The stamp duty is the subject of registration department and not the revenue department.
If there's an objection with reference to the deficit stamp duty then the registration department may take suitable action as per the prescribed law in this regard.
If the registration of the document is not complete then the title to holder of the property may be deemed defective.
The revenue records are not the title documents hence the revenue department may not reverse the mutation entry automatically due to this reason.
P. Venu
(Expert) 27 December 2025
The query is riddled with too many assumptions and presumptions. Please post simple facts highlighting the real issue, if at all any.
Please note that levy of stamp duty is a State subject and each State has its own norms.
Dr. J C Vashista
(Expert) 28 December 2025
So many queries qua a gift deed, which happens to be "without consideration".
Stamp duty is not a consideration which is charged by State government. Stamp duty differs in a State to another.
In case stamp duty is deficient the document shall not be registered, impounded and dealt with provisions of Stamp Duty Act.
Although stamp duty is dealt by Revenue Department of the State yet it has no concern with mutation.
Consult a local lawyer if it is a real story, which appears to be hypothetical.
