Sri Vijaya Puram, Sept. 23: People in the Andaman and Nicobar Islands who want to give their property as a gift to family members may get significant relief in stamp duty under the new 2026 stamp-duty provisions.
The new rules under Article 31 of the Indian Stamp (Andaman and Nicobar Islands Amendment) Regulation, 2026 set out how much stamp duty is payable when property is gifted. The amount depends mainly on the type of property, its market value and the relationship between the person giving the property and the person receiving it.
What Is A Gift Deed?
A gift deed is a legal document used when a person voluntarily gives property to another person without receiving money or other consideration in return.
For example, if a parent transfers a house or land to a son or daughter as a gift, the transaction can be made through a gift deed.
The new stamp-duty schedule has separate provisions for such transfers.
How Much Stamp Duty Will Be Charged?
Article 31 says that, in general, stamp duty on a gift follows the rates under Article 22, unless the gift qualifies for one of the special family concessions.
Article 22 is the provision dealing with conveyances, which broadly covers property transfers. Under the schedule, the rate for movable property is 2 per cent. For immovable property, the rates listed are 4 per cent where the property is purchased by a female, 5 per cent for a joint female-and-male purchase and 6 per cent in other cases.
For gifts, however, special rates are available for certain family members.
Gift To Certain Family Members: 1.5%
If a person gifts property to their husband, wife, brother, sister, or a lineal ascendant or descendant, the stamp duty is 1.5 per cent of the market value of the property.
In simple terms, a person gifting property to a qualifying close family member does not necessarily have to pay the same duty that would apply to an ordinary property transfer.
Some Family Gifts Can Cost Just ₹200
The schedule provides an additional concession for certain properties.
If residential or agricultural property is gifted to a husband, wife, son, daughter, grandson, granddaughter or the widow of a deceased son, the stamp duty is fixed at ₹200.
This is different from the 1.5 per cent provision. The ₹200 rate applies only when both conditions are met — the property must be residential or agricultural, and the recipient must fall within the family relationships specifically listed in the provision.
Why Market Value Matters
For gifts where a percentage-based rate applies, the property’s market value becomes important.
The stamp-duty schedule states that duty is generally linked to the true market value or consideration, whichever is higher, subject to special rates or concessions. Article 31 specifically refers to the market value of the property being gifted.
This means property owners should establish the applicable value before calculating how much stamp duty will be payable.
Registration Rules Also Being Changed
The stamp-duty changes come alongside amendments to the property registration system in the islands.
The Andaman and Nicobar Islands Registration (Amendment) Regulation, 2026, promulgated on September 18, applies to the entire Union Territory. However, it will come into force only from a date that the Administrator announces through an Official Gazette notification.
The amended registration law requires documents submitted for registration to be accompanied by a true copy. It also lists circumstances in which a registering officer can refuse registration, including inadequate details to identify the property, failure to produce required approvals or no-objection certificates, or problems with establishing the identity or execution of the parties.
The law also provides for electronic registration in areas notified by the Government. This may include electronic signatures, Aadhaar-based e-authentication and other forms of digital verification.
What Property Owners Should Remember
For anyone planning a gift deed, the most important things to check are:
Who is receiving the property?
The relationship between the donor and recipient determines whether a special concession may apply.
What type of property is being gifted?
The ₹200 provision is specifically for residential or agricultural property and specified family recipients.
What is the market value?
Where the duty is calculated as a percentage, the market value of the property is important.
Are the registration requirements fulfilled?
The amended registration law introduces additional documentation and verification requirements.
The changes could therefore make a major difference to families transferring property within the islands, particularly where the transaction falls under one of the specified family concessions.
However, property owners should note that the new Registration Amendment Regulation is not automatically effective from the date it was promulgated. Its commencement depends on a notification by the Administrator.
“If I want to gift my property to a family member, how much stamp duty could I have to pay?”
What do the two Articles mean?
Article 22, Conveyance: This deals broadly with property transfers such as a sale or transfer. The schedule sets different stamp-duty rates depending on whether the property is movable or immovable and, for certain immovable-property transactions, on the gender of the purchaser.
Article 31, Gift: This specifically deals with transferring property as a gift, meaning the property is given without consideration. It says that gift deeds generally follow the Article 22 rates, but provides special concessions for specified family members.
1.5% family concession: A gift to the donor’s husband, wife, brother, sister, or lineal ascendant/descendant is charged at 1.5% of the property’s market value.
₹200 concession: Residential or agricultural property gifted to a husband, wife, son, daughter, grandson, granddaughter or widow of a deceased son attracts a flat ₹200 stamp duty under the schedule.
Registration amendment: Separately, the 2026 Registration Amendment Regulation changes how documents are submitted and registered. It extends to the entire Union Territory but comes into force only on a date notified by the Administrator.
Before executing a gift deed, property owners should therefore check the applicable notification, the property’s market value and the specific family relationship covered by the stamp-duty provision.
