The gift is defined under Section 122 of the Transfer of Property Act, 1882. “Gift” is the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee.WhatsApp
The gift is defined under Section 122 of the Transfer of Property Act, 1882. “Gift” is the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee.
How can it be accepted?
Such acceptance must be made during the lifetime of the donor and while he is still capable of giving, If the donee dies before acceptance, the gift is void. A gift deed is a legal document that is used to transfer ownership of a property, movable or immovable, from one person to another, without any exchange of money or other consideration.
- Consideration Clause: It should be clearly mentioned in the Gift Deed that the transfer is being made out of love and affection and there is no exchange of money or any other type of consideration is involved. It is irrelevant how small the consideration is, it would not be considered as a gift.
- Possession of Property: The property you want to gift, must be in your possession i.e. you must be the titleholder of that immovable property. While making a gift, the property must be in existence, you cannot gift something that you might get in the future.
- Free Will: The transfer should be free from any type of coercion, undue influence, threat or fear. The gift should clearly state that the transfer is voluntary and that the transferor has a clear intention of doing so.
- Information about Property: A detailed description of the property is a must. It should clearly specify the structure, address, color, area, location, etc.
- About Donor and Donee: The relationship between donor and donee is important as to whether they are blood relatives or not. Some state governments also offer a concession on stamp duty if gifts are made to blood relatives.
- Rights and Liabilities: Under this clause, if any additional rights or liabilities are attached to the gift shall be mentioned. For example, any rights relating to the further sale, or leasing it further.
- Rights of Donee: A clear mention of Donee rights forms an inseparable part of the Gift Deed. It includes the donee’s rights to enjoy the property peacefully, to make changes to the property, receive rents or any profits that might arise from that property.
- Delivery: A delivery clause talks about the action (express or implied) which would confirm the delivery of the possession of the property.
- Revocation Clause: Though not mandatory, but advisable. It will help in avoiding future complications. It has to be expressly mentioned, not implied. And donor and donee both have to agree on this clause.
After making sure that your Gift Deed is signed, and attested by witnesses, and after having paid the stamp duty and registration charges as per your state regulations. You need to carry a few other documents like:
- Original Gift Deed;
- ID Proofs, like Driver License, Passport, etc;
- PAN Card;
- Aadhar Card;
- A document like Sale deed to prove donor title to the Property;
- Other Agreements which you might have entered into in relation to property.
Registration – mandatory or optional?
Registration of gift deed is mandatory or not, is clarified under section 123 of the Transfer of Property Act, 1882, and under section 17 and under section 18 of the Registration Act, 1908, as follows: Section 123 of the Transfer of Property Act, 1882, provides that for the purpose of making a gift of immovable property, the transfer must be effected by a registered instrument signed by or on behalf of the donor and attested by at least two witnesses. For the purpose of making a gift of movable property, the transfer may be effected either by a registered instrument signed as aforesaid or by delivery. Also, Section 17(1)(a) of the Registration Act, 1908 provides that registration of instruments of the gift of immovable property is compulsory. Section 18(d) of the Registration Act, 1908, states that registration of instruments (other than wills) that purport or operate to create, declare, assign, limit or extinguish any right, title or interest to or in movable property. So it is clarified that registration of gift deed is mandatory in the case of gift of immovable property and in the case of movable property, it is optional.
Here are some of the benefits of a gift deed in India:
- Tax Benefits: The transfer of property through a gift deed is exempt from taxes under Section 56(2)(x) of the Income Tax Act, 1961. This means that the recipient of the gift will not have to pay any tax on the value of the property received.
- Avoidance of Probate: By transferring property through a gift deed, the transfer of ownership is completed during the lifetime of the donor, which means that the property does not have to go through probate after the donor's death. This can save time and money for the heirs.
- Protection of Assets: A gift deed can help protect assets from legal disputes or creditors. Once the property is transferred through a gift deed, it becomes the property of the recipient, and cannot be attached by the donor's creditors or be subject to any legal disputes.
- Family Relations: A gift deed can also help strengthen family relations by allowing the donor to transfer their property to a loved one during their lifetime, rather than waiting for the property to pass through inheritance.
Why approach LAWYASA?
- Expertise: Lawyasa has a team of experienced lawyers who specialize in various fields of law, including family law, property law, and corporate law. We can provide you with expert legal advice and guidance on your specific legal issue.
- Convenience: Lawyasa is an online legal platform, which means that you can access our services from anywhere, at any time. You can consult with our lawyers, get legal documents prepared, and even file a case in court, all from the comfort of your own home.
- Cost-effective: Lawyasa offers cost-effective legal services, which can save you a lot of money compared to traditional law firms. We offer transparent pricing, so you know exactly how much you will be paying for our services upfront.
- Customised solutions: Lawyasa provides customised legal solutions tailored to your specific needs. We take the time to understand your legal issue and provide you with the best possible legal advice and representation.
- Customer support: Lawyasa provides excellent customer support. Our team is available to assist you with any questions or concerns you may have, and keep you informed throughout the entire legal process.
How can LAWYASA assist?
Lawyasa can assist you in drafting and delivering a gift deed in India through the following steps:
- Consultation: You can contact Lawyasa and discuss your requirements and the details of the gift with a lawyer. The lawyer will guide you through the process and answer any questions you may have.
- Drafting: Once the details of the gift have been finalized, a lawyer from Lawyasa can draft a gift deed that is in accordance with the Indian laws and regulations. The draft will be shared with you for review and approval.
- Execution: Once the gift deed is finalized and approved, Lawyasa can assist in the execution of the gift deed, ensuring that all the legal formalities are completed. This includes getting the gift deed signed by both parties in the presence of witnesses, as required by law.
- Delivery: Once the gift deed is executed, Lawyasa can assist in delivering the gift deed to the recipient. The gift deed can be delivered through registered post, courier, or any other means as agreed between the parties.
- Registration: Lawyasa can also assist in registering the gift deed with the relevant authority, as required by law.
Frequently Asked Questions
Q: Can a gift deed be revoked or canceled after it has been executed?
Q: Are there any tax implications associated with a gift deed?
Q: Can a gift deed be executed for movable property, such as jewelry or vehicles?
Q: Can a gift deed be challenged in court by legal heirs or other interested parties?
Q: What is the role of registration in a gift deed, and is it mandatory?
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