A gift deed is a document formed during the act of giving a gift between the donor and the donee. Drafting a gift deed is not mandatory but it is advisable to have it documented.
While drafting a gift deed, it is advisable to mention that the donation or the act of gifting is voluntary, without any force or coercion. It is required to mention in the gift deed that the donor is not bankrupt.
Registration of Gift DeedNow that you know what is gift deed, I will tell you how to perform registration of a gift deed.
To register gifts that involve immovable property, the registration must be done under Transfer of Property Act. A gift deed has to be registered in the sub-registrar’s office by the donor and the receiver in the presence of two witnesses. They have to pay stamp duty and registration charges as applicable.
Please note, if the gift deed is among close relatives then some states provide concessions in stamp duty.
Income Tax Applicability on Gift DeedThe tax applicability on the gift deed states that no taxes have to be paid if the gifts received are less than Rs. 50,000 worth in a year. Income tax is fully exempted if the deed is between two close relatives including, parents, spouse, siblings, siblings of the spouse, lineal ascendants and descendants of the person and his/her spouse.
Your Feedback Matters! How was this Answer?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
Hello Farooq. I can help clear your confusion regarding what is gift deed. So a Gift Deed is simply a legal document that lets you transfer ownership of a property or asset to someone else without any money changing hands. There is no buying or selling involved, just gifting.
Working of Gift Deed
Under the Transfer of Property Act, 1882, a Gift Deed must be in writing, signed by both the donor (person giving) and the donee (person receiving).
It has to be witnessed by at least two people. Most importantly it has to be registered at the Sub-Registrar's office for it to be legally valid.
Without registration it's basically a piece of paper the court won't recognise.
Even though no money is exchanged, you still have to pay stamp duty to the state government and it varies from one state to another, based on the laws there.
On the tax side, gifts to close relatives like parents, spouse, siblings and children are fully exempt from income tax regardless of property value.
This is all I know about a gift deed. Hope this is useful for you.
Get Complete Help with Deed with Experienced Lawyers of NoBroker!
What is Gift Deed?
Farooq
3934 Views
2
5 Year
2021-03-04T12:17:28+00:00 2023-07-17T15:24:49+00:00Comment
Share