1. Gift Deed specimen

 

Gift is the transfer of certain existing moveable or immoveable property, made voluntarily and without consideration, by one person called the donor, to another person, called the donor, and accepted by or on behalf of the donor.

 

A Gift Deed is a legal document describing the voluntary transfer of a property from one person to another without any consideration as money or value in exchange. Please note that the property so gifted must be an already registered instrument in order to pass on the ownership from a donor to a donor, according to the Indian Registration Act, 1908.

 

2. Donor’s Voluntary Decision

 

For a donor to bestow a Gift through Gift Deed, the following conditions have to be met-

 

1. The donor must voluntarily make the Gift out of natural love and affection
2. The decision should not appear as to be taken under pressure
3. There should be no exchange of money involved in the act
4. The donor can make a Gift and should be capable of giving (should be over 18 years of age and possess a sound mind)

 

3. Registration of Gift Deed

 

Though there is no exchange of money involved in the process, registration of a Gift Deed is mandatory to make a valid transfer of property. Two witnesses have to be present during registration, who should also attest the Gift Deed. Once the registration process is complete, transfer of title can be made. Stamp duty of recommended value has to be paid for registration of Gift Deed. The Stamp duty charges differ from state to state and also based on gender.

.

 

4. What Does A Gift Deed Include?

 

A Gift Deed should include the following-

 

1. Date and Place of execution of the Gift Deed
2. Details of the Donor (Name, Father’s Name, Date of Birth, Address)
3. Details of the Donor (Name, Father’s Name, Date of Birth, Address, Relationship with Donor)
4. Relationship of Donor with the Receiver
5. Details of the property that is being gifted
6. Signatures of Donor and Receiver
7. Details of two witnesses in whose presence the deed was executed
8. Signatures of the witnesses

 

5. Gift to Minors

 

A Gift can be made to a donor who is minor, but a minor cannot be a donor. If the donor is a minor, then his/her legal guardian can accept the Gift in the minor. The guardian shall manage the property until the minor attains 18 years of age, following which, the donor can either accept the gift or return it to the donor.

 

6. Gifting Movable Property

 

Movable properties such as vehicles, cash, jewels, ornaments, etc can also be gifted. Registration is mandatory in case of Gift of an immovable property but it is optional for movable property. The Gift of movable property can be made by a registered deed or by mere delivery of the property.

 

7. Taxation of Gift

 

According to Section 56 (2) (vii) of the Income Tax Act, 1961, a gift is not taxable if it is received by an individual or Hindu undivided family from any relatives/blood relatives or as inheritance or at the time of marriage or in contemplation of death. But in any other context, if the aggregate of gifts received exceeds Rs 50,000 in a year, then the gift will be taxable as income from other sources.

 

8. What Are The Essentials Of A Valid Gift Deed?

 

To make a Gift Deed valid, one should make sure that the following requirements are fulfilled:

 

1. Donor should make the Gift by his free consent with no consideration involved
2. Donor should accept the Gift during the lifetime of the donor
3. Donor should be over 18 years age and possess a sound mind
4. The Gift should be tangible
5. The Gift should be transferable
6. The Gift should be an existing one and not a future property
7. The Gift should be a registered property
8. Gift Deed should be signed by both the parties (donor and Receiver)
9. Gift Deed should be attested by two witnesses
10. Gift Deed should be registered as required under the Indian Registration Act, 1908

 

9. How to Revoke A Gift Deed?

 

According to Section 126 of the Transfer of Property Act, a Gift Deed can be revoked if it fulfills the conditions below there

 

1. is an agreement between the donor and donee stating that the gift can be revoked on the occurrence of a certain event
2. such an event must not be based on the mere will of the donor

Print