What is a Gift?
According to Section 122 of Transfer of Property Act, 1882, A gift is the transfer
- Of a certain existing movable or immovable property
- Made (i) one's own free will and
(ii) without consideration
- By one person (called the donor) to another (called the done) and
- Accepted by (or on behalf of) the donee.
Such acceptance must be made during the lifetime of the donor and while he is still capable of giving. If the done dies before acceptance, the gift is void.
To give effect to the above transfer, a gift deed is executed
What are the benefits and consequences of a Gift Deed ?
A gift deed provides for an easy transfer of property without any consideration.
A gift deed helps transfer property to the relatives of the First Relation with minimum stamp duty and registration fees in most states (The types of relation i.e. First, Second and Other Relations has been mentioned below).
A gift deed will facilitate transfer of ownership, rights, title and interest in favour of the transferee.
Under who's name the property is gifted ?
Parties to a Gift Deed are known as Donor and Donee, where donor transfers the property without consideration in the name of the Donee.
Donee can be anyone as per the donor's wish.
The percent of Stamp Duty and Registration Fees is applicable on the basis of the relation between the donor and donee.
A property can be gifted as following:
First Relation
Second Relation
Other relation
Is it compulsory to register a Gift Deed?
Only Gift deed for the immovable property is to be compulsorily registered according to Sections 17 of the Registrations Act before the Sub – Registrars of Assurances where the property is located.
Is Stamp Duty and Registrations Fees compulsory?
Yes, Stamp duty and Registration Fees is to be paid on a Gift Deed for immovable property. However, the rates for both differ between States.
Can a property be gifted in the name of a Minor ?
Yes, property can be gifted in the name of a Minor. However, provisions of Indian Contract Act, 1872 will be applicable to the transaction.
Is it possible to register a gift deed to register in a person’s private residence?
Under the provision of Section 31 of the Registration Act authorizes the registering officer, on show of special cause (for instance if the person is physically handicapped), to attend at the residence of any person willing to present a Gift Deed for registration and accept for registration such a deed, provided registering officer is satisfied that the particular cause that is shown is sufficient.
What are the witnesses and other processes to register a Gift Deed?
Signatures of two witnesses will be required to get a deed registered. Other documents such as passport size photos, identity proof (driving license, Adhar card, etc.) of the witnesses is required.
What are the differences between Gift and Relinquishment Deed
Gift and relinquishment are different kinds of transfer of property.
A Relinquishment Deed enables one person to release or transfers his/her legal right to the property. Whereas, a Gift Deed enables one person to gift his/her legal rights in a property to any person. In a relinquishment deed, the property relinquished is always an inherited property whereas the property gifted need not always be an inherited property. The person in whose favour the property is relinquished must be the co-owner of the property. whereas the person in whose favour the property is gifted can be anyone
When a Gift Deed is said to be complete?
We have written a separate article for this question.
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