A gift deed is a document formed during the act of giving a gift between the donor and the donee. Drafting a gift deed is not mandatory but it is advisable to have it documented.
While drafting a gift deed, it is advisable to mention that the donation or the act of gifting is voluntary, without any force or coercion. It is required to mention in the gift deed that the donor is not bankrupt.
Registration of Gift DeedNow that you know what is gift deed, I will tell you how to perform registration of a gift deed.
To register gifts that involve immovable property, the registration must be done under Transfer of Property Act. A gift deed has to be registered in the sub-registrar’s office by the donor and the receiver in the presence of two witnesses. They have to pay stamp duty and registration charges as applicable.
Please note, if the gift deed is among close relatives then some states provide concessions in stamp duty.
Income Tax Applicability on Gift DeedThe tax applicability on the gift deed states that no taxes have to be paid if the gifts received are less than Rs. 50,000 worth in a year. Income tax is fully exempted if the deed is between two close relatives including, parents, spouse, siblings, siblings of the spouse, lineal ascendants and descendants of the person and his/her spouse.
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What is Gift Deed?
Farooq
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2021-03-04T12:17:28+00:00 2023-07-17T15:24:49+00:00Comment
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