Gift Deed

Gift Deed

Gift Deed

A gift deed should clearly record the parties, property details, intention to transfer, and registration requirements where applicable. We help clients structure the documentation and execution process correctly for movable and immovable property transactions.

Advantages of Gift Deed

Legally Binding:

Once the Gift Deed is executed and accepted by the donee it becomes legally binding on both the parties.

Proof of Title:

The deed acts as evidence that proves the title of the property gifted.

Conditions:

  • The property must an existing movable or immovable property
  • It should be transferable
  • It should not be a property that exists in the future
  • It has to be tangible property

Process of Gift Deed

Drafting:

The Gift Deed has to be drafted with the help of a legal professional who knows to incorporate every valid detail. The deed must contain information pertaining to who gifts the property to whom, the description of the property, date of transfer, etc.

Acceptance:

In case of gifting the process becomes valid only on the acceptance donee. The donee has to accept the gift during the lifetime of the donor else the gift becomes invalid.

Registration:

Section 123 of the Transfer of Property Act requires a gift deed relating to immovable property to be executed and registered in order to be legally valid.

Frequently Asked Questions

Is registering a gift deed mandatory?

Yes. A gift deed for immovable property must generally be registered to be valid under Section 123 of the Transfer of Property Act.

Which Law Governs did apply on Deed of Gift?

Transfer of Property Act.

Why is it Important to make a Deed of Gift?

It is important to create a deed of the gift due to the following reasons:

  • LEGALLY BINDING: Once the gift deed is executed and accepted by the done, it becomes legally binding on both the parties.
  • PROOF OF TITLE: The deed act evidence that proves the title of the property gifted.
  • TAX-FREE: The gifts made to relatives defined by the Income Tax Act are exempt from tax in the hands of the donee.

What are the conditions involved in Transferring a Property as Gift?

  • The property must an existing movable or immovable property.
  • It should be transferable
  • It should not be a property that exists in the future
  • It has to be a tangible property