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| Gift Deed |
WHAT IS GIFT DEED
A Gift Deed is a legally binding document that is used when one person wants to transfer a gift to another person without the exchange of money. The person who is giving the gift(owner) is called a donor and the person who is receiving the gift(receiver) is called as donee.What are the benefits of a Gift Deed?
- A Gift Deed records the transfer of property to the donee.
- The complete details of the property and the details of the parties to the transaction make this document a legal proof to the title of the property.
- A Gift Deed is of evidentiary value before the Courts in event of any future disputes that may arise.
- A Gift Deed serves as legal protection to the parties in event of any disputes that may arise in the future.
- The written agreement makes the entire transaction smoother for the parties and without a glitch.
What are the essential elements of a Gift?
- A transfer which is defined as conveying of property;
- Voluntary transfer by the major and sound donor without any coercion or fraud.
- The property which is the subject matter of the gift must be an existing movable or immovable property and not a future property.
- The gift must be without any monetary consideration and only out of natural love and affection.
- Acceptance of the donee is important.
What are the essentials of a gift deed?
A Gift Deed is a legal document, thus must be clear and unambiguous stating all the term in proper legal language.
- The specifies to be mentioned in a Gift Deed are:
- The name and details of the Donor and the Donee.
- The details of the title and ownership of the subject matter.
- Other details of the property. The relation between parties, if any Date and place of execution.
- A Gift Deed is required to be signed by the Donor who consents to the transfer of subject matter through Gift-deed, the Donee who accepts the gift wholly, and two adult witnesses
How To Register A Gift Deed?
Registration of gift deed is done according to the provisions of the Indian Law. The steps involved in the registration process are:
- Valuation of the property being gifted by an approved valuation expert is very important.
- Payment of Stamp duty and transfer duty – Stamp duty varies for women and men (slightly lower for women). The stamp duty also varies from state to state and for latest rates one should visit official state government website. Certain state governments even offer some concession if the property is being gifted to blood relatives. For instance, for Delhi, the stamp duty in case of property transfer by way of sale or gift deed is the same—4% of men and 6% for women. In case of a gift deed, the rate is the same if the property is being gifted to a non-family member. If the recipient is a family member, then only 0.5% of the market value of the property has to be paid as stamp duty.
Legal Formalities For Gift Deed Registration:
The documents required for gift deed like PAN card, Aadhar card, driver's license, passport, etc. need to be submitted to the Registrar's office.
Things to be kept in mind for the gift deed are as follows:
- The gift deed should essentially mention the details of the property that is being gifted
- Details of the recipient are very important.
- It must be signed by the donor who is gifting the property.
- Both the donor and receiver must be present in the office of Registrar.
- It must be attested by at least 2 witnesses.
- The deed needs to be stamped with an appropriate nonjudicial stamp which depends upon the value of the property.
When Is The ‘Gift’ Considered Invalid?
If the donor dies before registering the gift deed then the gift is not valid. The person receiving also has to accept the gift during the lifetime of the donor.
There is no prescribed method of accepting the gift. Let’s say Mr. Verma wants to gift a property to his daughter. She may start residing in the property or has taken possession of the property. Her name being entered in the mutation records also amounts to acceptance of the gift. If Mr. Verma dies even before her accepting the gift, the gift becomes invalid.
Register Gift Deed or get experts consultation through Enterslice.
Registration of gift deed is done according to the provisions of the Indian Law. The steps involved in the registration process are:
- Valuation of the property being gifted by an approved valuation expert is very important.
- Payment of Stamp duty and transfer duty – Stamp duty varies for women and men (slightly lower for women). The stamp duty also varies from state to state and for latest rates one should visit official state government website. Certain state governments even offer some concession if the property is being gifted to blood relatives. For instance, for Delhi, the stamp duty in case of property transfer by way of sale or gift deed is the same—4% of men and 6% for women. In case of a gift deed, the rate is the same if the property is being gifted to a non-family member. If the recipient is a family member, then only 0.5% of the market value of the property has to be paid as stamp duty.
Legal Formalities For Gift Deed Registration:
The documents required for gift deed like PAN card, Aadhar card, driver's license, passport, etc. need to be submitted to the Registrar's office.
Things to be kept in mind for the gift deed are as follows:
- The gift deed should essentially mention the details of the property that is being gifted
- Details of the recipient are very important.
- It must be signed by the donor who is gifting the property.
- Both the donor and receiver must be present in the office of Registrar.
- It must be attested by at least 2 witnesses.
- The deed needs to be stamped with an appropriate nonjudicial stamp which depends upon the value of the property.
When Is The ‘Gift’ Considered Invalid?
If the donor dies before registering the gift deed then the gift is not valid. The person receiving also has to accept the gift during the lifetime of the donor.
There is no prescribed method of accepting the gift. Let’s say Mr. Verma wants to gift a property to his daughter. She may start residing in the property or has taken possession of the property. Her name being entered in the mutation records also amounts to acceptance of the gift. If Mr. Verma dies even before her accepting the gift, the gift becomes invalid.
Register Gift Deed or get experts consultation through Enterslice.
Register Gift Deed or get experts consultation through Enterslice.
When you transfer a property with a gift deed,you become the owner of the property, as it is transferred to you free of charge. You can then sell the property and keep the profit.
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