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Gift Deed Registration in India - BizAdvisors


Everything you need to Know about Gift Deed Registration in India

Gift Deed Registration in India

A Gift Deed Registration in India,  is an agreement used when a person wishes to donate their property or money to another person. Movable or immovable properties can be donated voluntarily by a Gift Deed from the donor to the donee. A Gift Deed Registration allows the owner to gift the property to anyone and avoids future disputes arising from succession or inheritance claims. A registered Gift Deed is also evidence in itself and unlike Case,  the transfer of ownership is instantaneous and you do not need to go to court to enforce the Gift Deed. Therefore, the deed of donation also saves time. In this article, we will thoroughly discuss Gift Deed Registration in India.  A personal property,  real estate or existing property that is transferrable, can be gifted and requires a Gift Deed. A registered Gift Deed will help you avoid future litigation as well.  

How to write Gift Deed? 

A draft of a Gift Deed Registration in India should contain the following information- 

  • Place and date,  on which the Gift Deed is executed. 
  • Relevant information in the Gift Deed about the donor and donee, such as   their name,  address, relationship, date of birth and signatures. 
  • Full details of the property you are making a Gift Deed for. 
  • Two witnesses to certify the Gift Deed and their signatures. 

Then the gift voucher must be printed on stamp paper,  depending on the value determined by the state government, after payment of the required amount and the gift the certificate must be presented at the office of the Registrar or Deputy Registrar. 

Important Clauses which needs to be mention in a Gift Deed

Here are some important things that should be mentioned in the Gift Deed Registration in India- 

  1. It is Neither Money nor Violence 

Be sure to add this consideration clause to the Gift Deed. It must be noted that no exchange of money will take place and that the Gift Deed is made solely out of love and affection and not money or coercion. 

  1. You own your Property when you Give it Away 

Only the owner have the right to give away property. If you are not the owner  (holder)  of the property, you cannot give the property to another person in writing in advance. 

  1. Description of the Property 

All information about the property, such as structure,  property type, address, area, location, etc. must be given in the format of the gift deed. 

  1. Relationship Between Donor and Recipient 

If the donor and recipient are blood relatives, some state governments may offer a stamp duty. Even if they are not,  it is important to establish the relationship between the donor and the deed in the Gift Deed format. 

  1. List all Liabilities 

If there are rights or obligations that are associated with the donation, e.g., B. whether the recipient can sell or rent the property, etc.  such clauses must be mentioned in the Gift Deed. 

  1. Surrender Clause 

These in the Gift Deed mention the express or tacit surrender of the property. 

  1. Revocation of Donation 

The donor may also clearly indicate whether they would like the donee to include an opt-out clause on the Gift Deed. Both the donor and the recipient must agree to this clause in the gift agreement. 

Documents Required for the Gift Deed Registration in India

Following are the documents required for Gift Deed Registration in India- 

  1. Aadhar Card 
  2. PAN Card 
  3. Passport size Photograph 
  4. Gift Deed 
  5. Sale Deed or Title Deed 
  6. Id Proof and Address proof of the witnesses 
  7. Id Proof and Address proof of the person who is gifting the property

Gift Deed Tax Exemption 

If the property was received by one of the following, the above clause will not apply and the gifted will not be charged-

  1. When a Gift Deed is received from relatives by an individual and by a member of a HUF
  2. When the Gift Deed in connection with the marriage is received by the individual. 
  3. In the case of a will or inheritance. 
  4. In anticipation of the death of the payer or donor. 
  5. If the Gift Deed is issued by a municipality (in the sense of the explanation to Section 10 (20)  of the Income Tax Act). 
  6. If the Gift Deed was received from a fund, foundation, university, other educational institution, hospital or other medical institution, trust or entity referred to in Section 10(23C). 
  7. If the Gift Deed was received from a trust or entity registered under Section 12AA. 

Steps to Create the Gift Deed 

Following are the steps given below to create the Gift Deed-

  1. Format of the Gift Deed 

Like any other legal document, the Gift Deed must conform to a certain format and standards in order to be valid. Therefore,  it is best to seek professional advice when writing a Gift Deed. The letter should state clearly- 

  • What is given, who is given and how they are related, by blood or otherwise. 
  • As a contract between the donor and recipient, it must be free and open to give and receive. 
  • It must state that the donor provides a gift of their choice and no money is exchanged. 
  • A Gift Deed must also state that the donor is not bankrupt and over the age of 18. 
  • Giving indicate the date and place of registration. 
  1. Acceptance of the Deed of Donation 

Gift recipients must sign the documents as a condition of receiving the gift, which is just as important as delivery. The contract of inheritance and donation is null and void if the donor dies before the donee accepts the donation. 

  1. Registration of the deed of donation 
    It is illegal to give someone a gift without first registering it; Gift Deed Registration in India is compulsory under Section 123 of the Representation of the People Act 1951[1]. Registration tips includes the following-  
  • A Gift Deed 
  • Registration costs depend on the value of the gift 
  • The donor must sign the deed 
  • Two people must witness, sign and date the act. 
  • The donor and recipient must appear at the registrar’s office. 
  • The registrar must obtain a copy of the applicant’s valid passport obtained, driver’s license etc. and PAN 
  • The stamp duty and transfer tax must be paid. 

Conclusion Gift Deed Registration in India

Gift Deed Registration in India is legally recognized as true legal deeds for property transfer. The donor has the right to transfer their property to anyone to avoid disputes. A gift on behalf of someone is voluntary. Anyone who have the legal ownership of the property can donate the same. There is a transfer of ownership to another person without compensation. The gift’s main selling point is its ease of transfer to a new recipient. To seek professional advice for Gift Deed Registration in India is always suggested as it is a legal document, any mistake in it can proof fatal. You can also contact Bizadvisors.io who are experienced and have a team of experts who have profound knowledge about Gift Deed Registration in India.

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