Gift and settlement deeds
last updated 2026-07-21
A gift deed transfers property without payment; a settlement deed does the same but can carry conditions, such as the giver keeping a life interest. Among family members in Tamil Nadu, both attract concessional stamp duty and registration of about 1% + 1% (with caps), versus the usual 7% + 4%.
Gift vs settlement
- Gift deed — transfers ownership out of love and affection, with no money changing hands. Once registered and accepted, it is generally unconditional.
- Settlement deed — also a no-consideration transfer, but it can attach conditions: for example, a parent settling a house on a child while retaining the right to live in it for life. It is often used to divide ancestral property or settle claims among heirs during the owner's lifetime.
The family concession
Gift, settlement, release and partition deeds executed among family members in Tamil Nadu are charged at a concessional rate — around 1% stamp duty and 1% registration fee (subject to caps) — against the standard 7% and 4% for a normal sale. The concession applies to close blood relatives (parents, children, siblings, spouse, grandparents); transfers outside that circle are taxed at the full rate.
What a buyer should watch for
When a property's chain of title includes a gift or settlement, two things are worth checking. First, that it was properly executed and registered — a valid deed is a clean link in the chain. Second, and especially for settlement deeds, whether any condition or retained right (like a life interest) survives, because that can limit what a later seller could actually pass on. At a bank auction the sale certificate transfers the property, but a conditional settlement in its history is the kind of flag worth reading carefully — which is what AuctionScope helps you do. This is general information, not legal advice.
Frequently asked questions
What is the difference between a gift deed and a settlement deed?
Both transfer property without payment. A gift deed is generally unconditional once registered; a settlement deed can carry conditions, such as the giver retaining a life interest, and is often used within families to divide property.
What is the stamp duty on a family gift or settlement in Tamil Nadu?
For transfers among close family members, gift, settlement, release and partition deeds attract a concessional rate of about 1% stamp duty and 1% registration (with caps), versus 7% and 4% for a normal sale. Confirm current rates on TNREGINET.
Should I worry about a settlement deed in a property's history?
Check whether it carried a condition or retained right, such as a life interest, that could limit what a later seller can pass on. A properly registered, unconditional transfer is a clean link in the chain of title.
Related terms
Sources
Rates, fees and procedures change — confirm the current position on the official portals below before you act.