Gift Deed – Overview

A gift deed, as per Section 122 of the Transfer of Property Act 1822, is a legal instrument through which a person can voluntarily transfer an immovable or a movable property to another person without any exchange of money. In simple terms, a gift deed is used for gifting a property. The person gifting the property is called the Donor, and the person receiving the gift is called the Donee.

A gift deed is valid only when it is made out of natural love and affection and without any exchange of money. Additionally, as per Section 17 of the Registration Act 1908, if you wish to gift an immovable property, it is compulsory to register the gift deed.

A Gift Deed Contains the Following:

• Details of the Donor and the Donee.
• Details of the property to be gifted, such as its description, location, etc.
• Rights and liabilities of the Donee after the property transfer.
• Terms and conditions in delivering the gifted property.
• Conditions under which the gift can be revoked, and this should be agreeable between the Donor and the Donee.

Pre-Requisites of Gift Deed Registration:

• Proof of ownership of the property by the Donor. In this case, a sale deed can be produced.
• Draft of the gift deed.
• ID proofs of the Donor and the Donee (such as Aadhar Card, PAN Card, driver’s license, etc.).
• Passport-size photos of both parties.
• Two witnesses, along with their ID proofs.

Procedure for Creating and Registering a Gift Deed:

1. Contact a lawyer and discuss your intention of gifting your property to someone through a gift deed.
2. The lawyer will draft the gift deed.
3. Pay the stamp duty. This varies by state and the type of property. Your lawyer will assist you with this.
4. Visit the office of the sub-registrar for gift deed registration and pay the registration fee.
5. Produce all the required documents.
6. Sign the gift deed. The Donee will also sign it in the presence of the registrar.
7. The two witnesses should also be present during this time. They will sign the deed as well.
8. The gift deed will be registered, and the property will be ready for transfer.

Properties That Can Be Gifted Are as Follows:

• Any immovable or movable property that is tangible and can be transferred. This includes a house, car, jewelry, antique objects, cash, cheque, etc.
• Existing property. You cannot gift a future property that does not exist at present.