What is Gift Deed?

A Gift Deed in India is a legal document that allows an individual (the donor) to voluntarily transfer ownership of property (movable or immovable) to another person (the donee) without any exchange of money or other consideration. This transfer is done out of love and affection, and the deed serves as proof of the transfer. To know more about what is gift deed, I have shared a few key points around it.

What is Gift Deed of Property?

1. Voluntary Transfer: The transfer of property via a gift deed is entirely voluntary and without any monetary exchange.

2. Legal Formalities: The gift deed must be executed on a non-judicial stamp paper of the appropriate value, as per the Stamp Act of the respective state. It must be signed by the donor and attested by at least two witnesses.

3. Registration: Registration of the gift deed with the Sub-Registrar of Assurances is mandatory for it to be legally valid. The process involves paying a registration fee and submitting the necessary documents.

4. Irrevocability: Once a gift deed is executed and registered, it is generally irrevocable unless it includes a specific revocation clause.

5. Tax Implications: Gifts to relatives are exempt from tax, while gifts to non-relatives exceeding Rs. 50,000 in a financial year may attract tax under the Income Tax Act.

Typical Contents of a Gift Deed

• Details of the Donor and Donee: Names, addresses, and relationship between the parties.

• Description of the Property: Detailed information about the property being gifted.

• Declaration of Gift: A statement declaring that the donor is transferring the property out of free will.

• Acceptance Clause: A clause where the donee accepts the gift.

• Witness Details: Information and signatures of the witnesses.

This is all about what is the meaning of gift deed. I hope this helps!

Read More:

Hi,

As per my knowledge,

a Gift Deed is a record by which a person handovers a property or other valuable asset to another person.

In simple words, it is a document formed during the act of giving a gift between the donor and the donee.

A gift deed can be challenged till 3 years from the date of execution or from the date when donee finds out about it.