Here are the easy steps to get our quality services on time.
FILL YOUR ENQUIRY FORM
Fill your enquiry form for the details required.
Complete Your Payment process for your services
SEND YOUR DOCUMENTS
Share documents with our team for the completion of process.
Your service is complete for any other service contact us.
A gift deed is a legal document that transfers a gift from one person to another as per the provisions of the law. According to Section 122 of the Transfer of Property Act, 1822, a "gift deed" is a "legally binding written document by which a donor may willingly transfer any existing moveable or immovable property."
A gift deed is valid only when it is given out of love and affection, by one family member/friend to another without any consideration in return. As per Section 17 of the Registration Act, of 1908, it is compulsory to have a registered gift deed when anyone wants to transfer immovable property.
Being a very important legal document, you need to mention a few things in the gift deed. Some of them are
The gift deed should clearly state that the transfer is being made out of love and affection and does not involve the exchange of money or any other form of consideration. It is irrelevant how small the consideration is, it will not be considered a gift.
You must have the property you wish to gift i.e. you must be the title holder of the immovable property. While giving a gift, the property must exist; you cannot gift something that you may receive in the future.
The transfer must be free from any form of coercion, undue influence, threat, or fear. The gift must clearly state that the transfer is voluntary and that the transferor has a clear intention to do so.
The property must be described in detail. It includes structure, address, color, area; location, etc. should be clearly stated.
The relationship between Donor and Donee is important whether they are blood relatives or not. Some state
Under this clause, any additional rights or obligations attached to the gift shall be specified. For example, any rights relating to the further sale, or further leasing.
An express mention of donation rights forms an integral part of the gift deed. It includes absolute rights to enjoy the property peacefully, to make changes to the property, and to receive rent or any profit that may arise from the property.
The delivery clause speaks of an act (express or implied) that will confirm possession of the property
Although not mandatory, it is advised. This will help prevent future complications. It has to be expressly stated, not implied. And both donor and donee must agree to this clause.
A donee is a person who transfers immovable property. Any person who is of sound mind and capable of contracting can be a donor. A minor cannot be a donor because he/she is not capable of entering into a contract.
Donee is a person who accepts a gift/transfer made to him. A minor can be the donee, however, the donee's guardian must accept the gift on behalf of the donee. In the case of a hardship gift (a gift attached with certain conditions), the minor may accept or return the gift after reaching adulthood.
A gift deed should include the following;
Step 1: Draft the contract with the following essentials.
Step 2 : Print on stamp paper of appropriate value as per your state
Step 3 : Register the deed at your registrar or sub-registrar office.
After ensuring that your gift deed is signed and attested by witnesses and that you have paid the stamp duty and registration fee as per your state regulations. You will need to carry some other documents
The list is not exhaustive; you may need other documents like certificates related to the value of your property depending on your state.
The following properties can be gifted;
Some advantages can be attributed to gift deeds. Since gifts are made during the donor's lifetime, you can transfer your property as a gift if you want a specific person to take care of your property or perhaps you want to help someone. Also, if there is a good chance of legal implications surrounding the property, some people do a gift deed and avoid such lawsuits.
A gift once given and registered cannot be revoked with due process of law. After acceptance, it becomes the property of the donor. The donor cannot independently cancel the deed. Also, a deed in which the parties have agreed that the deed shall be revocable in whole or in part only at the will of the donor is not a valid gift deed.
However, there are certain grounds under Section 126 of the Transfer of Property Act, of 1882 when gifts can be revoked. Revocation itself involves canceling the gift deed and returning possession of the property to the donor. The reasons are–
A gift may be canceled if consent has been obtained for the above reasons and if the donor dies, his heirs have the right to file for cancellation of the deed.
Under Section 56(2)(x) of the Income-tax Act, 1961, where any amount received by any person after 1st April 2017, irrespective of the aggregate value thereof, exceeds fifty thousand rupees, the aggregate value of this amount shall be income from other sources. shall be taxable under this head. The said clause shall not apply to the following persons mentioned below;
More than 50,000 people use Onlinexbrl every month, and our platform has enabled the completion of thousands of services. We at Onlinexbrl are confident in the excellence of our services and prioritize our customers’ satisfaction with our dedicated services. Our team upgrades their knowledge to ensure the top-notch quality of the services related to registrations, compliance & legal.
Your Expert Assistant Is Here