All you need to know about Gift Deed
Date : 02 Aug, 2021
Post By Bhupender Tanwar
The Transfer of Property Act, 1882 (“Act”) regulates property transfers as gifts in India. A gift deed is used to transfer ownership of a property from one person to another. A gift deed is an instrument by which the owner of an immovable or moveable property gives his or her property to another person as a gift without receiving anything in return. The donor is the individual who gives his or her property as a gift, and the donee is the person who receives it. Without regard to whether the gift is legitimate under the Act, the donor must freely give the property to the donee. For a gift to be legally valid, the donee must accept it within the donor's lifetime. When the gift deed is filed with the relevant Registrar or Sub-Registrar, the gift of immovable property becomes effective. When the gift deed is registered or the property is delivered, the gift of moveable property is effective. The transfer of property from the donor to the donee occurs immediately after the gift deed is recorded, and the parties are not required to go to court to have it executed. When a donor desires to give a donee immovable property, the gift deed must be registered. A gift deed must be done without expecting anything in return. A valid gift deed must have the following characteristics: Ownership of the property must be transferred. The gift must be for a specific item, such as movable or immovable property that already exists. T transfer has to be done on one's own free will It must be carried out with no regard for the consequences. The donee must accept during the donor's lifetime and while he is capable of giving, and this acceptance must be made by or on behalf of the donee. Donor and donee are the two parties involved in a gift. The donor must be able to transfer funds, whereas the donee can be anyone Consult the best lawyer online Documents required: To register your gift deed at the Sub Registrar office, you must bring the paperwork indicated below. The gift deed The donor's original title papers certifying her property ownership. Donor, donee, and witness proof is required. Identify the donor, donee, and witness proof. Donor, donee, and witness photographs. What information should be recorded in the donation deed? The gift deed should specify that the donor is voluntarily transferring the property to the donee, rather than being forced to do so and without any kind of consideration. The donee's acceptance of the gift should also be mentioned in the deed.
Do gift deeds qualify for any stamp duty exemptions? For blood relations or family members, certain states provide stamp duty exemptions while registering a gift deed. If you are a family member, for example, West Bengal simply charges a stamp duty of 0.5 percent of the property value. The stamp duty you must pay rises to 6% if you are not a family member. A family member who is a donee in Delhi does not get a stamp duty exemption. If the donee is a woman, she must pay 4% of the property value in stamp duty, while if the donee is a man, he must pay 6% of the property value in stamp duty. Practically it is a better way to get the property transferred with low expenses compared to the Sale Deed. Gift Deed Registration: The gift of immovable property is valid under Section 123 of the Transfer of Property Act, 1882, if it is made through a registered gift deed signed by both the donor and the donee and witnessed by two people. When given under a registered gift deed or by giving the property to the donee, the gift of movable property is valid. To be registered, the gift deed must be written on stamp paper and include all of the provisions specified above. All pages of the gift deed should be signed by the donor and donee, and at least two witnesses must attest to it. For the gift to be lawful, the donee must accept it during the donor's lifetime and while the donor is sane. The stamp paper on which the gift deed is written has a different value depending on where you live. The stamp paper gift deed shall be recorded with the Registrar or Sub-office Registrar's whose jurisdiction includes the property to be gifted. If the property is moveable, the Registrar or Sub Registrar's office has authority over it because the donor lives there. Get in touch with the best lawyer online Gift Deed's Tax Consequences: After April 1, 2017, gifts are subject to income tax under Section 56(2)(x) of the Income Tax Act of 1961. When a person receives a quantity of money in excess of Rs.50,000 as a gift without consideration, the entire gift amount is taxed in the hands of the donee under the heading "Income from other sources" under Section 56(2)(x)(a). When a person gets an immovable property as a gift for no payment and the stamp duty value of the gift deed exceeds Rs.50,000, the stamp duty value of the property becomes taxable in the hands of the donee, according to Section 56(2)(x)(b) If the property or money comes from one of the following people, the gift is exempt from taxation, and the donee isn't taxed: If the gift was given to the individual by relatives, or If it was given to the individual on the occasion of his or her marriage, If it is received in anticipation of the donor's death, or if it is received from a local authority (as defined in the Explanation to Section 10(20) of the Income Tax Act), or if it is received from any fund, university, foundation, other educational institution, other medical institution, hospital, trust, or institution referred to under Section 10(23C) of the Income Tax Act, or if it is received from any other fund, university, foundation, other educational institution, other medical institution, hospital Is a gift deed revocable? The property becomes the donee's after it has been legally bestowed, and it cannot be readily revoked. Revocation of a gift may be permitted under specific circumstances, according to Section 126 of the Transfer of Property Act of 1882: If the gift was made under duress or by deception. If the grounds were found to be immoral, illegitimate, or repugnant, the case will be dismissed. If the gift deed was intended to be revocable under particular conditions from the start. Even if the donor dies, the revocation can be carried out by his legal heirs.
