Gift of Immovable Property
What is a gift deed?
A gift deed is an agreement used when a person wishes to gift his asset (property or money) to someone. It is the transfer of certain existing (not future) moveable or immoveable property made voluntarily and without any consideration from one person (called ‘donor’) to another (called ‘donee’).
Who can gift property?
Any valid owner of an existing property can gift property. A minor is incompetent to gift a property though a guardian can accept such a gift on his behalf.
What is the law that governs gifts by one person to another?
Transfer of Property Act, 1882.
What is a Transfer of Property?
Transfer of Property is an act by which a living person conveys property in present or in future to one or more living persons.
What may be transferred?
Property of any kind may be transferred, movable or immovable.
Can there be an oral transfer?
A transfer of property may be made without writing, if it is not expressly required by law. Gifts under the Islamic law may be made orally, as it does not require registration.
What is a gift?
It is a transfer of existing movable or immovable property made voluntarily without consideration by one person to another.
What are the ingredients of gift?
Gift is made by one person called the donor to another called the donee. There should not be any consideration for making a gift. That is, the donor should not receive consideration of any kind while making a gift. The donee should accept the gift in the lifetime of donor.
How gift of an immovable property is made?
Under the Indian Registration Act, any transfer of any immovable property, if the value of the property is more than Rs 100, should be in writing and should be registered.
What are the formalities for registering a gift deed?
The donor on requisite stamp paper should sign the deed. It should be attested by at least two witnesses; the donee should accept the gift.
What is meant by attested?
Attestation of an instrument (document) means that witnesses who sign the instrument should have seen the donor signing the gift deed and they should sign as witnesses in the presence of the donor and in the presence of each other.
Does gift of movable property require registration?
Gift of movable property, may or may not be registered. But delivery of the property and acceptance of it are essential.
How to effect delivery of the property?
The same way as goods is delivered in sale of goods.
Can gift once made be suspended or revoked?
The donor and donee may agree that on the happening of a specified event, which does not depend upon the will of the donor, a gift shall be suspended or revoked.
What is a gift deed?
A gift deed is an agreement used when a person wishes to gift his asset (property or money) to someone. It is the transfer of certain existing (not future) moveable or immoveable property made voluntarily and without any consideration from one person (called ‘donor’) to another (called ‘donee’).
Who can gift property?
Any valid owner of an existing property can gift property. A minor is incompetent to gift a property though a guardian can accept such a gift on his behalf.
Why should I require a gift deed ?
As per law, the title in a property cannot be delivered without a written instrument even when its value is small. Therefore, such deed is important to obtain and execute.
What is the procedure to use such a deed?
The draft of such a deed can be directly printed as per instruction kit provided and can be successfully executed by obtaining the signatures of the donor, donee and witnesses. The registration of a gift deed involves additional formalities that have to be taken care of (see below).
What are the essential elements of a Gift Deed?
As per section 22 of Transfer of Property Act, a gift deed has the following essential elements:
• Transfer of Property
• No consideration (as it is just a gift)
• Acceptance by the done
What happens if a person dies after making a gift deed without it being formally accepted by the donee?
As per recent directives by the court, acceptance of a gift is mandated without which such a deed is deemed void. Such acceptance must be made during the lifetime of the donor while he is ‘capable’ of making it.
Is registration of a gift deed mandatory?
1. As per section 123 of the Transfer of Property Act, the transfer of a gift of immoveable property must be effected by a registered instrument signed by donor and attested by two witnesses. For moveable property such as a car, such a registration is not mandatory and transfer can be achieved by delivery
If the individual person receives Gift from following persons are exempt from tax
Father
Mother
Brother
Sister
Son
Daughter
Grand Son
Grand Daughter
Husband
Wife
Sister’s Husband
Brother’s Wife
Wife’s Brother
Wife’s Sister
Husband’s Brother
Husband’s Sister
Mother’s Brother
Mother’s Sister
Mother’s Sister Husband
Wife’s brother’s wife
Father’s Brother
Father’s Brother’s Wife
Father’s Sister’s Husband
Father’s Sister
Grand Father
Grand Mother
Great Grand Father
Great Grand Mother
Daughter’s Husband
Son’s Wife
Wife’s Father
Wife’s Mother
Husband’s Father
Husband’s Mother
Wife’s Grand Father
Husband’s Grand Mother
Husband’s Grand Father
Wife’s Grand Mother
Wife’s Great Grand Father
Husband’s Great Grand Mother
Husband’s Great Grand Father
Wife’s Great Grand Mother
Brother’s Wife
Mother’s Brother’s Wife
Husband’s Brother’s Wife
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