A Gift Deed refers to a legal document representing a transfer of gift from one person to another by the law.
The term “gift” under Section 122 of the Transfer of Property Act 1882 refers to the transfer of movable or immovable property made voluntarily and without consideration, from one individual i.e. the donor, to another i.e. the donee, and accepted by or on his/ her behalf. Also, acceptance of gift shall be within the lifetime of the donor and while he is still capable of giving. A gift is void if the donee dies before it is accepted.
A Gift Deed is valid only when it is given out of love or affection, without consideration in return from the other person. As per Section 17 of the Registration Act 1908, it is mandatory to register the Gift Deed if one wants to transfer immovable property.
The salient difference between Gift Deed and Will is that the former operates as soon as it is executed (unless someone has challenged the validity of deed) and the assets gifted belong to the donee during the lifetime of a donor. Whereas a Will is operative at the time of the death of the testator, and the assets transferred through Will vest in the legatees.
Gift deed Registration
Also, as per section 17 of the Registration Act 1908, and section 123 of the Transfer of Property Act, it is mandatory to register a gift deed with the sub-registrar when a person wants to transfer immovable property, or else the transfer will be invalid. Besides that, once a gift deed is registered only then can a recipient apply for mutation of the property. Also, a registered gift will be required for further transfer of property by the recipient.
Yes, as per Section 126 of Transfer of Property Act the essential components for revocation of gift deed are as follows:
It is mandatory to pay stamp duty and registration fees to register a gift deed. Different states have different rates for property transfer through gift as it is similar for similar or conveyance deeds. However, rules may differ across states in Delhi, the stamp duty for sale or gift deed of property transfer is 4% for women, 5% for the joint owners, and 6% for men. In Punjab, there is no stamp duty in case of a blood relative or else 6% of property value.
A Gift Deed is a way through which an individual can transfer his/her property i.e. movable or immovable property to another person without consideration. ELT Consultants offers to make a gift deed and are the best Gift Deed Lawyers in India.
A “Gift” refers to a voluntary transfer of movable or immovable property without a consideration from one person to another.
A gift is transferred from one person to another without a consideration, they are called the donor and donee respectively. A consideration is an important ingredient in defining a gift.
Yes, a gift is offered to two or more persons and in case one them refuses to accept, it is void so he is concerned.
A gift can be suspended and revoked only when a certain event occurs on which both the donor and donee has agreed upon.
A ”Gift deed” refers to an agreement wherein a person (the donor) desires to transfer his/her assets to another person (the donee), without any consideration.
As per law, the title in a property cannot be delivered without a written instrument even when its value is small. Therefore, such a deed is important to obtain and execute.
The essential elements of a of a gift deed as the Transfer of Property Act are as follows:
As per 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.
Section 123 of the Transfer of Property Act states that the transfer of a gift of an immovable property shall be registered and signed by the donor and attested by two witnesses. Though for moveable property like a car, registration is not mandatory.