Meaning : A Gift Deed enables voluntary transfer of property without consideration and becomes legally effective upon proper stamping and registration.
1. Key Details :
- A Gift Deed is a legal document by which the Donor voluntarily transfers ownership of property to the Donee without monetary consideration.
- Transfer must be made out of love and affection.
- Applicable to both movable and immovable property.
- Acceptance by the Donee during the lifetime of the Donor is mandatory.
- Once executed and registered, a Gift Deed is generally irrevocable.
- Stamp duty is payable as per State laws (often concessional for close relatives).
- Registration is compulsory for immovable property.
2. Applicability:
A Gift Deed is applicable when:
- Property is transferred without any payment.
- Transfer is intended among:
- - Family members
- - Relatives
- - Any person (subject to legal capacity)
- Commonly used for:
- - Family settlements
- - Estate planning
- - Transfer of property during lifetime
- Can be executed for:
- - Residential property
- - Commercial property
- - Land / plots
- - Movable assets (shares, money, jewellery)
3. Requirements
A. Legal Requirements
- Donor must be the lawful owner of the property.
- Donor and Donee must be competent to contract.
- Transfer must be voluntary, without coercion or undue influence.
- Clear identification of the gifted property.
B. Documentation
- Title deeds / chain of title.
- Property card / 7-12 extract / CTS extract (as applicable).
- Identity and address proofs of Donor and Donee.
- PAN cards.
- Society NOC / share certificate (for flats).
- Proof of relationship (if claiming concessional stamp duty).
C. Registration & Stamp Duty
- Stamp duty paid as per State Stamp Act.
- Execution before Sub-Registrar of Assurances.
- Two witnesses required.