What is gift deed?
The lawful owner of a property can transfer it to another party without any monetary consideration through a gift deed. All such deeds must be signed by the donor, attested by at least 2 witnesses and registered. Once the gift deed is properly executed and registered, it vested all the legal rights and ownership to the donee i.e., the person to whom the gift has been made and he or she becomes the absolute owner of the property thereafter.
Feature of gift deed:-
Under section 122 of the Transfer of Property Act, 1882, provides that you can transfer immovable property through a gift deed. A gift deed contains details of the property, the transferor and recipient. The main feature of a gift deed is transfer of ownership must be done without any exchange of money and with Debt consolidation: the basics. However, stamp duty and registration fee has to be paid to register a gift deed. Registering a gift deed with the sub-registrar is mandatory as per section 17 of the Registration Act, 1908, and as per section 123 of the Transfer of Property Act. If you failed to register it, the transfer will be invalid. Once a gift deed of an immovable property is executed in favour of any recipient, the donor does not have the right to revoke or cancel the deed at a later stage, unless there is a specific clause mentioned in the deed. Section 126 of the property transfer Act provides for a situation wherein a gift deed may be revoked by the donor.
- You can choose to whom he wanted to transfer his property.
- Since gift deed are need to be registered, thus better clarity regarding the matter i.e. who is owner of property.
- You can save tax since transfer using gift deeds are tax free in the hands of donor and donee.
- What is gift deed?
A Gift Deed is a legal document describing voluntary transfer of the property from the donor (owner of the property) to the donee (receiver of the gift) without any exchange of consideration.
- What can be gifted?
It must be well defined existing movable or immovable property. It must be transferable and existing today and not be a future property. • It must be tangible.
- What should be included in the Gift Deed?
It should include- Relationship details of the donor with the donee, Rights and authority of the donor, Description of the property being gifted, Confirmation clause on the delivery of possession.
- How to register a Gift Deed?
Registration of a Gift Deed is done as per the provisions of the Registration Act, 1908. Common steps involved in registration process are-
a.) Valuation of property being gifted by an approved valuation expert.
b.) Payment of Stamp duty and transfer duty.
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