How Does Gift Deed Work in India?

How Does Gift Deed Work in India?

This is a contract in which one party voluntarily gives money or property to another. Both moveable and immovable assets can be transferred with a gift deed. A property owner avoids inheritance or succession disputes by transferring their assets to a future beneficiary. In addition, unlike a will, a registered gift deed is an independent evidence. The gift deed will not need to be signed in court, so you won’t have to spend as much time doing it.

Is It Necessary for All Gifts to Be in the Form of a Gift Deed?

You need a gift deed to gift existing, movable, or immovable property. To gift any kind of property, a gift deed is required. If you have a registered gift deed, you can avoid lawsuits in the future.

  • There are a few provisions that need to be mentioned:
  • To ensure the document’s integrity, the following are some things that should be included in the format of a gift deed and mentioned in the document.
  • There is no requirement for force or money:
  • When this clause is included in the gift deed, it will be obvious that no money will be exchanged and that the gift deed was made out of love and affection rather than coercion.
  • When you donate your property, you become the owner:
  • Gifting a property to another person is only possible for the property’s owner.Even if it is a charitable gift, you will not be able to give the property to someone else if you are not the owner (title holder) of the property.

Description of the Property:

The property gift deed must contain all necessary information about the property, including its address, city, state, location, size, type, and size of the building, among other details.

Relationship Between Donors and Recipients:

If the donor and donee are blood relatives, there may be a stamp duty concession when establishing their relationship in the property gift deed.

It Is Important to Mention Liabilities:

The donee’s right to sell or lease the property after receiving the gift, among other rights and obligations, should be outlined in the gift deed.

Delivery Policy:

As indicated by this part of the gift deed, the gift giver claims the property, as either an express or inferred activity.

Revocation of Gift:

The revocation clause in the gift deed must be agreed upon by both parties for the donor to not reconsider this gift. Unless the donor specifies this clause in the gift deed, the donee cannot revoke the gift.

The following documents are required for the registration of a gift deed:

  • You will be required to provide additional documents in addition to the ones listed above. The original gift deed, your proof of identity, your PAN card, and Aadhaar card, as well as any other property-related documents, are among these documents.
  • A gift deed can also be registered by paying the stamp duty in person at the registrar’s office or online, depending on the state. The rate of stamp duty varies from state to state. The state in which you live determines the rate of stamp duty.

Stamp Duty Ought to Be Paid When Giving Property to an NGO:

A gift deed of property that is skilled to a NGO or noble cause community generally doesn’t cause stamp obligation when it is gifted. However, you should inquire about stamp duty with the authorities in your state. You can determine whether an advocate can assist you in determining whether NGOs cannot accept gifts of property. Additionally, NGOs frequently are prohibited from accepting gifts of property.

Is It Conceivable to Renounce a Gift Deed?

Lawfully gifted property cannot be easily rescinded and becomes the donee’s property. In any case, denial of a gift deed can be permitted in the accompanying conditions:

  • A gift deed could have been made under intimidation or extortion.
  • If the gift deed was based on unfair, unethical, unfair, or reprehensible grounds, this could happen.
  • Under certain conditions, revocation of a gift deed can be mutually agreed upon at the beginning of the process.

Income tax on gifts by deed:

Gift deeds must be reported on Income Tax Returns (ITR) since the Gift Tax Act of 1958 was repealed in 1998.In 2004, gift deeds were reintroduced. If you receive a property with a stamp duty value of more than Rs 50,000 without receiving adequate consideration, you will be subject to taxation.


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