Relinquishment deed or gift deed: which one your family needs
Both deeds move property inside a family without money changing hands. They are not interchangeable: one works only between people who already own the property together, and the stamp duty on the other is a percentage of its value.
A relinquishment deed (also called a release deed) is how a co-owner gives up their share in favour of the other co-owners. The usual case is inheritance: a parent dies without a will, the property passes to several heirs, and some of them release their shares so that one heir holds it. A gift deed is how an owner transfers property they own, during their lifetime and without payment, to anyone they choose.
The difference that decides it
Ask whether the person receiving already owns a share. If they do, a relinquishment deed can work. If they don't, it is a gift, or a sale if money moves, whatever the document calls itself. DDA's own relinquishment form is written for a released share that goes to people who are 'also the legal heirs'.
| Relinquishment deed | Gift deed | |
|---|---|---|
| Who can receive | Only an existing co-owner, typically a co-heir | Anyone the owner chooses |
| What moves | The releasing co-owner's share | All or part of what the owner holds |
| Money | None in a plain relinquishment. If there is consideration, MCD charges transfer duty at mutation | None, by definition |
| Formalities | Registered at the Sub-Registrar | Registered, signed by the giver, attested by at least two witnesses, and accepted while the giver is alive |
| Stamp duty in Delhi | Not listed on the Revenue Department's registration page. The Sub-Registrar assesses it on the deed | 4% if the person receiving is a woman, 6% if a man, plus a registration fee of 1% of value and ₹100 |
| Mutation with MCD | Its own category: registered relinquishment, release or exchange deed | Filed with sale deeds: registered sale, gift or conveyance deed |
When families use which
- Siblings inherit a house and two of them want the third to keep it: a relinquishment deed by the two, in favour of the third.
- A parent wants to put the house in a child's name now: a gift deed. The parent is the owner, and the child doesn't yet own a share.
- A parent wants the child to have it later: a will. Delhi charges no stamp duty on a will, and registering one costs ₹600.
- An heir is given money to step aside: that is no longer a plain relinquishment. The duty changes, and MCD charges transfer duty when the record is changed.
Mistakes that cost the most
- Calling a gift to a non-owner a relinquishment to save stamp duty. The Sub-Registrar looks at what the deed does, not its title, and a later buyer's lawyer will too.
- Leaving an heir out. A relinquishment only covers the shares of the people who sign it. An heir who didn't sign still owns their share.
- Not registering. An unregistered relinquishment or gift of immovable property does not transfer the share, and MCD's categories only accept registered deeds.
- Stopping at registration. The deed changes ownership. The MCD record still has to be changed with an e-Change of name application.
Stamp duty is set by the Delhi government and changes. The gift deed figures here are from the Revenue Department's page as last updated on 9 October 2026. Confirm the duty for your deed before booking registration.
Common questions
- What is a relinquishment deed?
- A registered deed by which a co-owner, usually a co-heir, gives up their share in a property in favour of the other co-owners. It works only between people who already own the property together.
- Can I relinquish my share to someone who isn't a co-owner?
- Not as a relinquishment. Transferring a share to someone with no existing share is a gift, or a sale if money moves, and it is charged and treated that way.
- What is the stamp duty on a gift deed in Delhi?
- Per the Delhi Revenue Department: 4% if the person receiving the gift is a woman and 6% if a man, plus a registration fee of 1% of the value and a ₹100 pasting charge. Confirm the current rate before registration.
- Does a gift deed need witnesses?
- Yes. A gift of immovable property must be made by a registered deed signed by the giver and attested by at least two witnesses, and the person receiving must accept it while the giver is alive.
This is a general explanation, not advice on your property. Procedure, rates and thresholds differ by state and municipality and change over time. Kabir Real Estates provides advisory and due-diligence assistance and does not issue title certificates or formal legal opinions. Where a matter needs one, we will tell you so.
Sources
Checked against these sources on 10 October 2026
- Delhi Revenue Department: property registration charges (last updated 9 October 2026)
- Supreme Court, Gomtibai v. Mattulal (1996): gift of immovable property under ss. 122 and 123, Transfer of Property Act
- MCD, User Manual for e-Change of name (PTR), v2.0, April 2023, Annexure A
- DDA Land Disposal Department, Guidelines for transfer/mutation of residential plots
Read next
Mutation after an owner's death in Delhi
The first question isn't which form to fill. It's which office keeps the record for this property, whether there is a will, and whether every heir agrees. Those three answers decide the paperwork.
ReadHow MCD property mutation works, step by step
MCD's own certificate says it plainly: a change of name in the property tax record is for paying property tax, and does not make anyone the owner. Here is how the application works, and what to upload for each kind of transfer.
Read