Sale Deed and Gift Deed in India: Format, Stamp Duty and Registration (2026)

Explainer · Property Documents

Updated for 2026 · Claw Editorial

You are about to buy a flat, or a parent wants to give you a plot. Someone hands you a draft and says "it is a standard deed". The real risks are quiet ones: the wrong type of deed, too little stamp duty, a missing witness, or a deed that was never registered. Any of these can make the transfer weak or unusable later. A sale deed transfers ownership of property for a price, while a gift deed transfers it without any price. Both must be in writing, stamped as per the state stamp duty, and registered under the Registration Act when the property is immovable. This guide explains the format of each, how stamp duty and registration work, and how they differ from a will.

01Sale deed essentials and clauses

A sale is the transfer of ownership in return for a price that is paid or promised. The law for this is in section 54 of the Transfer of Property Act, 1882. For immovable property of value Rs 100 or more, the sale can be made only by a registered instrument. That instrument is the sale deed.

What a good sale deed contains

• Parties: full name, father or spouse name, age, address and ID of the seller (vendor) and the buyer (purchaser).
• Property description: survey or plot number, area, boundaries on all four sides, and the address. A weak description is a common source of later disputes.
• Title recital: how the seller got the property (earlier sale deed, gift, inheritance, partition), with dates and document numbers.
• Consideration: the sale price in figures and words, and how it was paid (cheque, bank transfer, with details). Part payment and balance should be clear.
• Transfer and possession: a clear statement that ownership passes to the buyer and that vacant possession is handed over on a stated date.
• Covenants: the seller promises a clear and marketable title, free from mortgage, lien, attachment or litigation, and agrees to compensate the buyer if this proves false.
• Dues: taxes, society charges and utility bills are cleared up to the date of sale.
• Witnesses and signatures: signatures of both parties and at least two witnesses, with the schedule of property attached.

02Gift deed essentials

A gift is the voluntary transfer of property by one person (the donor) to another (the donee) without consideration. It is covered by sections 122 to 129 of the Transfer of Property Act, 1882.

The conditions that must be met

• No payment: the transfer is made without any price. If money changes hands for the property, it is a sale in substance, not a gift.
• Acceptance by the donee: the donee must accept the gift, and this must happen during the lifetime of the donor and while the donor is still capable of giving. If the donee dies before accepting, the gift is void.
• Registered writing: for immovable property, the gift must be made by a registered instrument signed by or on behalf of the donor and attested by at least two witnesses (section 123).
• Existing property only: a gift of future property is void. The donor must own the property when the deed is signed.
• Sound mind and free consent: the donor must be an adult of sound mind who acts without force, fraud or undue influence.

Revocation is limited. A gift cannot be taken back at the donor’s wish, except in the narrow cases in section 126, such as an agreed condition that allows revocation, or where the gift was obtained by fraud. Many gift deeds also record "love and affection" as the reason and state that possession has been handed over.

03Stamp duty and registration

Two separate steps make the deed valid and usable: paying stamp duty and registering the deed.

Stamp duty is a state subject

Stamp duty is charged under the Indian Stamp Act, 1899, as amended by each state. The rate, the exemptions and the rules for gifts to family members all differ from state to state. Some states charge the same duty for a gift as for a sale. Others give a lower or token rate when the gift is to a spouse, child or other close relative. Some states also charge different rates for men and women, or for urban and rural property.

Duty is usually calculated on the higher of the sale price and the government circle rate or market value. Always confirm the current figure on your state’s official stamp and registration portal on the day you sign.

Registration

• Registration is required by section 17 of the Registration Act, 1908, for a sale or gift of immovable property.
• The deed is presented to the Sub-Registrar of the area where the property lies, usually within four months of signing (section 23).
• Both parties (or their authorised agents) and the witnesses appear with ID proof, and a registration fee is paid in addition to stamp duty.
• An unregistered deed that needs registration cannot be used as proof of the transfer (section 49).

After registration, the buyer or donee should apply for mutation so that revenue and municipal records show the new owner. See how to check property mutation status. To confirm the property is free of loans and registered charges, see how to download an encumbrance certificate.

04Sale deed vs gift deed vs will

All three move property from one person to another, but they work very differently.

In short: use a sale deed when there is a price, a gift deed when you want to give property now and for free, and a will when you want the transfer to happen only after death.

05Sample outlines

These are outlines only, to show the order of a deed. They are not a ready form. Have a lawyer adapt and check any real deed against local rules and the title documents.

Sample outline: sale deed

1. Title: "Sale Deed", date, place, and the stamp paper details.
2. Parties: vendor and purchaser, with full details and ID.
3. Recitals: how the vendor got title, and the agreement to sell.
4. Sale price, mode of payment, and receipt of the amount.
5. Transfer of ownership and delivery of possession.
6. Vendor’s covenants on clear title and indemnity.
7. Clearing of taxes and dues up to the sale date.
8. Schedule of property with boundaries and area.
9. Signatures of both parties and two witnesses.

Sample outline: gift deed

1. Title: "Gift Deed", date, place, and stamp paper details.
2. Parties: donor and donee, with their relationship.
3. Recitals: how the donor owns the property, and the reason (love and affection).
4. Statement that the gift is voluntary and without consideration.
5. Transfer of the property and handing over of possession.
6. Donor’s assurance that the property is free from encumbrance.
7. Acceptance of the gift by the donee, recorded in the deed.
8. Schedule of property with boundaries and area.
9. Signatures of donor and donee, and at least two attesting witnesses.

06Common mistakes to avoid

• Skipping title checks: a clean-looking deed does not prove the seller owns the property. Check the chain of title and encumbrances first.
• Under-valuing the property: showing a price below the circle rate can bring a duty demand and penalty later.
• Forgetting registration: signing and stamping alone is not enough.
• Calling a sale a gift: if money is paid, the label does not change the real nature of the deal.
• Ignoring pending cases: a property under litigation can be sold, but the buyer takes it subject to the outcome.
• Not applying for mutation: without it, tax and revenue records may still show the old owner.

For rental use of the same property, see the rent agreement format.

07Where Claw fits

Claw is an all-in-one legaltech platform for Indian advocates, law firms, and corporate legal teams, combining AI-based case search, an AI legal assistant (Legal GPT), case management, and compliance automation across all Indian courts and tribunals.

Claw does not draft or register your deed, and it is not a substitute for checking the land records. Where it helps is in property due diligence: before you buy or accept a gift, you can check whether the seller or the property appears in court cases. Claw’s case search covers the Supreme Court and 25 High Courts, and its case management tracks matters across 8200+ courts. For programmatic checks, Claw also offers an API; see our guide to the best court record check APIs in India.

08Sources and further reading

• Transfer of Property Act, 1882 and Registration Act, 1908: indiacode.nic.in
• Indian Stamp Act, 1899 and state amendments: indiacode.nic.in
• Claw: clawlaw.in

This page is general information, not legal advice. Stamp duty and registration fees differ by state and change often, so confirm them with your state’s registration department. Last verified October 2026.

09Frequently asked questions