Stamp Duty Calculator Tamil Nadu 2026

What is a Gift Deed?

A gift deed is a legal document through which one person (the donor) voluntarily transfers ownership of property to another person (the donee) without any monetary consideration. Unlike a sale deed where money changes hands, a gift deed is executed out of love and affection, typically between family members.

Common uses: transferring property from parents to children, between spouses for estate planning, ancestral property among siblings, or donations to institutions.

Stamp Duty and Registration Fees

The stamp duty structure for gift deeds in Tamil Nadu varies based on the relationship between donor and donee. According to the Inspector General of Registrations, the rates depend on:

• Nature of relationship (blood relatives vs non-relatives)
• Type of property (residential, commercial, agricultural)
• Value of the property being gifted

Registration Fee: Typically 4% of the property value, though family transfers within close blood relations may attract concessional rates. It's advisable to consult with the local Sub-Registrar office for exact rates.

Gift Deed vs. Will

Key Differences:

• Gift Deed: Immediate transfer during donor's lifetime, mandatory registration, cannot be revoked, stamp duty payable, immediate possession
• Will: Transfer after death, optional registration, can be changed anytime, minimal stamp duty, possession after probate

Choose gift deed for immediate transfer and to avoid future disputes. Choose will if you want to retain control during your lifetime.

Tax Implications of Gift Deed

For the Donor:

• No capital gains tax (since there's no sale)
• No gift tax in India (abolished in 1998)

For the Donee (Receiver):

Under Section 56(2) of the Income Tax Act:

• Tax-free if from specified relatives: Parents, siblings, spouse, spouse's parents, children - 100% tax-free regardless of value
• Taxable if from non-relatives: Property worth more than ₹50,000 from friends or distant relatives is added to income and taxed at slab rates

Example: ₹50 lakh property from father = ₹0 tax. Same property from uncle = approximately ₹15-16 lakh tax (at 30% slab).

Can a Gift Deed be Revoked?

Generally, NO. Once a gift deed is registered and possession is delivered, it cannot be revoked by the donor.

Exceptions:

• Conditional gifts where conditions are violated
• Proven fraud, coercion, or undue influence
• Mutual cancellation agreed by both parties
• Gift to a minor (can be revoked before majority)

Gift Deed vs. Relinquishment Deed

• Gift Deed: Transfer of sole-owned property from one person to another without consideration
• Relinquishment Deed: Giving up one's share in jointly-owned or ancestral property in favor of another co-owner

Key Considerations

• Registration is mandatory - Unregistered gift deeds have no legal validity
• Irrevocable nature - Think carefully before execution
• Relationship proof - Required for claiming concessional rates and tax exemptions
• Consider all legal heirs - Gifting to one child may cause family disputes; get NOC from others

What is Property Exchange?

Property exchange, also known as barter of immovable property, is a transaction where two parties mutually exchange their properties without monetary payment. Both parties directly swap ownership of their respective properties.

Common scenarios: Exchanging small house for larger one in suburbs, farmers exchanging lands for better location, swapping commercial for residential property, or family property redistribution.

Stamp Duty and Registration Rates

According to the Inspector General of Registrations, Tamil Nadu:

• Stamp Duty: 7% on the higher value property
• Registration Fee: 4% on the higher value property
• Total: 11% on the greater value property

Example: Property A worth ₹40 lakhs, Property B worth ₹55 lakhs:

• Stamp Duty: ₹55,00,000 × 7% = ₹3,85,000
• Registration: ₹55,00,000 × 4% = ₹2,20,000
• Total: ₹6,05,000 (typically shared equally)

When Exchange Makes Sense

• Avoiding double transaction: Single registration instead of selling one and buying another
• Tax benefits: If properties are of equal value, capital gains may not arise
• Immediate possession: Both parties get their properties simultaneously
• Family arrangements: Convenient for redistributing ancestral properties

Tax Implications

Property exchange is considered a transfer under Income Tax Act. If property values are unequal, the party receiving higher value property may have capital gains liability. Consult a tax consultant before proceeding.

Key Considerations

• Stamp duty calculated on higher of the two property values
• Properties can be in different districts (register at jurisdiction of higher value property)
• Cost typically shared equally between both parties
• Registration is mandatory for legal validity