What is a gift deed in India?

A gift deed is a legal document used to voluntarily transfer ownership of movable or immovable property from one person to another without any monetary consideration.

Who can gift property to whom in India?

In India, property can be gifted to relatives or non-relatives, as long as the transfer is clearly stated in the gift deed and completed as per legal requirements such as registration (for immovable property).

Are gift deeds taxable?

Taxability depends on factors such as the relationship between the donor and donee and the value of the gift. Gifts received from specified relatives are generally exempt, while certain gifts from non-relatives may be taxable under income tax rules.

How to make a gift deed?

To make a gift deed, draft it with complete donor and donee details and property particulars, get it signed by the parties and witnesses, pay applicable stamp duty, and register it with the Sub-Registrar for immovable property.

Is registration of a Gift Deed mandatory?

Yes. For immovable property, registration of a gift deed is mandatory under the Registration Act, 1908. Without registration, the gift deed is not legally valid for transferring immovable property.

Can a Gift Deed be revoked or cancelled after registration?

A registered gift deed is generally irrevocable. It may be cancelled only in limited situations, such as when a valid revocation condition is included in the deed and agreed by both parties, or if the deed is challenged on grounds like fraud, coercion, or undue influence.

What are the tax implications of a Gift Deed in India?

Gifts received from specified relatives are generally tax-exempt. Gifts from non-relatives may be taxable if the aggregate value exceeds Rs 50,000 in a financial year, as per applicable income tax provisions.

What is the process for registering a Gift Deed?

For immovable property, the donor and donee typically visit the Sub-Registrar’s office with witnesses, submit the gift deed and required documents, sign in front of the registering officer, and pay stamp duty and registration charges to complete registration.

What documents are required to register a Gift Deed in India?

Common documents include identity and address proofs of the donor and donee, property ownership documents, the drafted gift deed on stamp paper, photographs, and identity proofs of witnesses. Additional documents may be required based on the state and property type.