Draft of Gift Deed
A gift deed is a document that records the act of giving a gift and is executed between the donor (the person giving the gift) and the donee (person receiving the gift). Though it is not compulsory to execute a gift deed while gifting any asset, it does create a valid documentary record. A gift can be movable or immovable property that is transferable and tangible.
As gifting is a voluntary action, the gift deed should mention that the deed has been made voluntarily and out of the donor’s own choice without any force or coercion. The deed should also declare that the donor is solvent (not bankrupt) and that the gift is being made without any consideration.
Acceptance of gift
The next step is acceptance of the gift by the donee. Acceptance of the donee is recorded in the gift deed by the donee’s signature and is also substantiated by acceptance of possession of the gift. Another key element to this step is that the acceptance of gift should happen during the life of the donor. The gift may be rendered invalid otherwise.
Registration of deed
Gifts that involve immovable property should be registered under the Transfer of Property Act. Unless registration of the gift deed is completed, the title does not pass on to the donee, in case of gift of immovable property. Stamp duty shall be payable based on the value of the gift. To ascertain fair value of the immovable property for calculation of stamp duty, approved valuation experts will have to carry out valuation of the property.
Essential features of a valid gift deed:-
- Gift should be inter vivos transaction and made voluntarily;
- One transfers his ownership to another by the virtue of Gift.
- The person making Gift is known as Donor & the person to whom gift is made, he is called Donee. The donor must be a person competent to transfer; whereas the donee may be any person.
- The subject matter of a gift has to be certain whether existing movable or immovable property.
- Accepted by or on behalf of the donee. There is no gift without acceptance;
- A gift is a gratuitous transfer, i.e., without consideration
- The gift can be made to any one, to an incompetent person or even to a juridical person. Gratuitous transfer is the essence of a gift transfer.
- Gift of an immovable property has to be registered if the value of the property is more than Rs. 100/- as per the Registration Act, 1908.
- Generally Gift is irrevocable.
How to get your Gift Deed drafted and Registered through DiLSEWiLL-
- Please do connect to our Customer Care Executive at 9830648068/8017053224. You may also mail your queries to [email protected]. Live chat is functional on our website from 10:30 am to 7:00 pm on weekdays.
- A quotation shall be emailed to you after taking all necessary information from your end
- After approval of the quotation, the agreed charges will need to be deposited by you.
- The procedure for drafting the Gift deed will then be initiated.
