Gift Deed

A Gift Deed in India: A Comprehensive Guide

A gift deed is a legal document that transfers property without monetary exchange. The Transfer of Property Act and the Indian Contract Act governs it.

Key Elements:

• Voluntary and gratuitous transfer
• Acceptance by the donee
• Competence of donor and donee
• Absence of coercion, fraud, or undue influence

Registration Process:

1. Drafting the deed
2. Paying stamp duty and registration fees
3. Visiting the sub-registrar's office
4. Verification and execution
5. Post-registration formalities

Required Documents:

• Identity proof of donor and donee
• Proof of property ownership
• Gift deed
• Witness details
• PAN and Aadhar cards
• Stamp duty and registration fees

Tax Implications:

• Gifts to relatives are generally exempt from income tax.
• Gifts to non-relatives exceeding ₹50,000 are taxable.

Recent Changes:

• Revised stamp duty rates
• Clarified tax rules
• Acceptance of electronic signatures

Common Mistakes:

• Inadequate documentation
• Ignoring future disputes
• Misunderstanding stamp duty and tax implications

Advantages and Disadvantages:

Advantages: Tax benefits, ease of transfer, legal clarity

Disadvantages: Irrevocability, stamp duty costs, potential disputes

Consider Points:

• Unregistered gift deeds are invalid.
• Gift deeds can be challenged in court.
• Gifts to relatives are generally exempt from income tax.
• Registration takes a few days.
• Gift deeds are different from wills.

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