What is a Gift Deed?
A gift deed is a document involving two persons called the Donor and the Donee, wherein a person i.e. the Donor wishes to transfer his existing immovable and movable properties to another person called Donee, without any consideration. This transfer is done completely voluntarily and without any force.
Therefore, a Gift deed helps in conferring one’s properties to others without any consideration and voluntarily. This gift deed avoids any future disputes for property inheritance among the survivors.
Generally, a gift deed for the movable property is not mandatory. But for immovable property, it is mandatory to register it so that it can not be challenged later in the court of law.
Gift Deed as per Section 122 of Transfer of Property Act, 1882
Section 122 of the Transfer of Property Act Act, 1882 states that a Gift deed is a legal document for transferring certain movable and immovable properties, by a person (donor) to another person(donee), without any consideration. The gift deed requires an acceptance from the Donee, during the lifetime of the Donor. If the Donee dies without accepting the gift deed, it will become void.
It is not mandatory to execute a gift deed for transferring the ownership of an asset in the form of a Gift. However, if a gift deed is registered, certainly it will avoid any litigation in future regarding ownership of any particular asset.
A property can be transferred in the form of a gift only when it is transferable and tangible and the Donor is the legal owner of the property.
Transfer of property is governed by the Transfer of Property Act, 1882. This transfer of property act refers to an act done by a living person for conveying property to one or more persons or by himself or by one or more living persons in the present or the future.
Living people include a company, an association, or body of individuals whether incorporated or not.
Key elements of a valid Gift Deed
The key elements that make a gift deed a valid one are as follows:
- Voluntary: The key point of a valid gift deed is that it is made voluntarily and without any fear or force;
- No monetary consideration: The primary element of a valid gift deed is that it is made without any monetary consideration. If there is an element of consideration on transfer of properties, it will not be treated as a valid gift deed;
- Ownership: The person transferring the property i.e. the Donor must be a legal owner of the property. If the title of the property is not with the Donor, it can not be transferred;
- Acceptance of gift: A gift must be accepted by the Donee during the lifetime of the Donor, otherwise it would not be considered as a valid gift deed;
- Description: A valid gift deed must mention the description of the property to be gifted such as its address, its nature and the form;
- Restriction for minors: A minor is not capable of making a contract. Therefore, a minor is restricted from making any gift deed. However, the parents of a minor can accept gifts on behalf of a minor;
- Two parties: A valid gift deed must contain two parties such as a Donor and a Donee. The Donor transfers his properties to the Donee;
- Nature of properties: A gift deed may contain the transfer of both immovable and movable properties;
- Existing properties: For a valid gift deed, it must contain the transfer of the existing properties of the Donor. No future assets are allowed to be transferred;
- Relationships: A gift deed should clearly mention the relationship between the Donor and Donee if any. They may be family members, friends and etc.;
- Revocability: A gift once transferred lawfully, can not be revoked by any means unless it is proved that the gift has been made fraudulently and illegally as per the provisions of Section 126 of the Transfer of Property Act, 1882. So, a property once gifted and it is registered, becomes the property of the Donee and therefore can not be revoked;
- Rights and Liabilities: A gift deed must necessarily mention if the transferred property does have any underlying liability associated with it. Also, the rights of the Donee should be written clearly such as the right to sell the property in future, leasing the property and even receiving rent.
What gifts require a Gift Deed?
As long as you are the legal owner of a property, you can gift any property you want. Therefore, any immovable and movable property can be transferred through a gift deed on fulfilment of certain conditions.
Therefore, a property that is a legally owned, and existing one, can be transferred voluntarily through a gift deed.
How to draft a gift deed?/How is a gift deed made?
A valid gift deed must contain the following information clearly. Absence of any of the below key information would make the deed a void one.
- Donor and Donee: All the relevant information regarding the Donor and the Donee must be clearly written in the gift deed. This information is such as their names, address, relationship and date of birth;
- Signature: A gift deed should contain the signature of both the Donor and the Donee. Both signatures are very much crucial;
- Place and Date: It should contain the place and the date on which the deed is to be executed;
- Details of property: Property is the key element of a gift deed. So, it must include the full details of the property;
- Two witnesses: Lastly, a gift deed must be signed by two different witnesses for the testimony of the deed.
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Is gift deed registration mandatory?
Gift deed registration is not mandatory as per Section 17 of the Registration Act, 1908. But to make a gift deed a legal document, it must be registered. Also, gift deed registration helps the process of conferring upon the property more simple and complications free.
An unregistered gift deed may face any disputes in the future and it may cause unrest among the survivors for property inheritance. So registration is a prudent decision and makes it a strong legal document so that its authenticity can not be challenged in the court of law.
Therefore, it is always advisable that it must be registered U/S 17 of the Registration Act, 1908 to avoid litigations. Further, it should contain the details of the property, donor, and donee.
What does the Gift Deed stamp duty cost?
Registering a gift deed does not come free of cost. Registration of a gift deed requires you to pay the gift deed stamp duty. This stamp duty cost varies across different states of India. The gift deed stamp duty can be paid online or offline at the registrar’s office.
The stamp duty charges in various states are as follows:
| States | Gift Deed Stamp duty charges |
| Delhi | For Men- 6%, For-Women- 4% and For Joint owners-5% |
| Kolkata | Family members- 0.5%, Others- 5% in panchayat areas and 6% municipal, corporation and urban areas and above Rs 40 lakh- Surcharge of 1% |
| Mumbai | Family members- 3%, Others- 5% |
| Bangalore | Family members- Rs 1,000 to 5000, Non-family- 5% of the value |
| Chennai | Family members- 1% and Non-family- 7% |
| Madhya Pradesh | Family members- 2.5%, Others- 5% |
| Punjab | Family members- NIL, Non-family: 6% |
| Jaipur | Family & Non-family-5% for both |
Sample Gift Deed Format
FAQ’s on Gift Deed
The following are some general FAQs on Gift Deed for easy understanding
Who are eligible for gift deed?
A person of sound mind, who is a legal owner of a property is eligible to execute a gift deed. A minor is not eligible to execute a gift deed until he attains the legal age.
Can gift deed property be sold?
Yes, there is no problem as such to sell a gifted property. Once the property is gifted, it becomes the property of the Donee, and he might do anything with the property that he wishes to.
A gift deed once registered, can not be revoked anymore by the Donor. Therefore, a gift deed property can be sold without any restrictions whatsoever from the Donor.
Can gift deed can be Cancelled?
Yes, certainly. But the Donor can not do it unilaterally. Both the Donor and the Donee have to agree to cancel a gift deed. So, once a gift deed has been registered, it can not be challenged by others, but it can be cancelled with the mutual consent of both the Donor and the Donee.
Can you challenge a Gift Deed?
The answer is YES. You can certainly challenge both a registered and unregistered gift deed in the court of law. But you can challenge it only when it is proved that the gift was made by the Donor under any fear, forcefully or it was made fraudulently.
Below you can find a Sample Gift Deed Format in words:
GIFT DEED FORMAT
THIS GIFT DEED is made and executed on this the ……………………. day of …………………. Month, …………………… year by
Sri/Smt/Ms…………………………………………………………………………………………………… aged about ………………… years, Son/Daughter/Wife of Sri ……………………………………………………………………………………………………………………………, Profession …………………………….., caste ……………………………., permanent resident of …………………., P.O. ………………….. P.S. ………………………….., District …………………… State………………………… Pin Code ………………. at present residing at …………………., P.O. ………………….. P.S. ………………………….., District …………………… State………………………………… Pin Code ……………….
[If Minor,]
represented by Father/Mother/ Other (specify Relation) Guardian Sri/Smt./Kum ………………………………………., aged about ……….. years, Son/Daughter/Wife of …..………………………….., Caste- ………………. , Profession …………………………….., permanent resident of …………………., P.O. ………………….. P.S. ………………………….., District ……………………………..……State………………………… Pin Code ………………. ]
[If represented by Attorney Holder by virtue of Power of Attorney]
represented by his Power of Attorney Holder vide G.P.A. Document No. …………/ dated………………………………registered in the Office of the Sub-Registrar, …………………………..…….., District-………..………………….., State…………………………………. SRI/Smt./Kum ………………………………………., aged about ……….. years, Son/Daughter/Wife of …..………………………….., Caste- ………………. , Profession …………………………….., resident of …………………., P.O. ………………….. P.S. …………………..………….., District ……………………..……… State……………………… Pin Code ………………. at present residing at …………………., P.O. ………………….. P.S. …………………………….….., District ….………..…………… State………………………….. Pin Code ………………………..
Hereinafter referred to as “DONOR” which term unless repugnant to the context shall mean and include all his heirs, legal representatives, administrators and successors-in-interests, assignees and nominees etc. of the ONE PART
IN FAVOUR OF
Sri …………………………………………………………………………………………………… aged about ………………… years, Son/Daughter/Wife of Sri ……………………………………………………………………………………………………………………………, Profession …………………………….., caste ……………………………., permanent resident of …………………., P.O. ………………….. P.S. ………………………….., District …………………… State…………………………………… Pin Code ………………. At present residing at …………………., P.O. ………………….. P.S. ………………………….., District …………………… State……………………………….. Pin Code ……………….
[If Minor,]
represented by Father/Mother/ Other (specify Relation) Guardian Sri/Smt./Kum ………………………………………., aged about ……….. years, Son/Daughter/Wife of …..………………………….., Caste- ………………. , Profession …………………………….., permanent resident of …………………., P.O. ………………….. P.S. …………………..………….., District ……………………………… State………………………. Pin Code …………………………….…. ]
Hereinafter called the “DONEE” which term unless repugnant to the context shall mean and include all his heirs, legal representatives, executors, successors-in-interest, assignees, nominees and administrators etc. of the OTHER PART
HISTORY OF OWNRESHIP
——————————————————————————————————————-
AND WHEREAS the DONEE(S) is/are related to the Donor(s) as ……………………
AND WHEREAS the Donor(s) desire(s) to grant and transfer by way of the gift the said property to the DONEE(s) in consideration of natural love and affection he/she/they has/ have towards the DONEE(s) as hereinafter mentioned;
AND WHEREAS the DONEE(s) has/have agreed to accept the gift as is evidenced by his /her/their executing these presents;
AND WHEREAS the value of the said property is estimated as Rs ………../-
NOW THIS DEED OF GIFT WITNESSETH AS UNDER:THAT in consideration of natural love and affection,/Respect which the Donor(s) bear(s) to the DONEE(s), the donor (s) do/ does hereby and hereunder renounce all his/ her / their estate and right, title and interest with intent to vest the same in and grant, convey, transfer, give and assure unto and to the use of the DONEE (s ), freely and voluntarily and without any monetary consideration,
the property mentioned and described in the schedule hereto and hereinafter referred to as the said property and delivered possession of the same together with all trees, fences, hedges, ditches, ways, waters, lights, liberties, privileges, easements, and appurtenances whatsoever to the said property belonging for in any way appertaining or usually held or
occupied therewith or reputed to belong to or be appurtenant thereto and every part thereof TO HAVE AND TO HOLD the same unto and to the sole use and benefit and absolutely and unconditionally forever.
THAT actual physical possession of the Said Property has been handed over by the Donor(s) to the Donee (s) and Donee (s) is /are in possession of the same at the time of execution of this Deed of Gift.
THAT the Donor (s) doth hereby covenant with the Donee(s) as follows:
That the Said Property shall be quietly and peacefully held and enjoyed by the Donee (s) without any interference, interruption, or disturbance from the Donor (s) or any person (s) claiming through or under him/her/them.
That the Donor (s) has /have absolute right, title and full power to transfer unto the Donee (s) by way of gift and that the Donor (s) has/have not done anything or knowingly suffered anything whereby his/her/their right and power to gift the Said Property to the Donee (s) is diminished.
That the property is not subjected to any encumbrances, mortgages, charges, lien, attachments, claim, demand, acquisition proceedings by Government or any kind whatsoever and if found later on the Donor (s) shall discharge the same from and out of his /her / their own fund and keep the Donee (s) indemnified.
That there is no statutory restriction on the part of the Donor (s) under Urban Land (Ceiling and Regulations) Act, 1976 or under any other law for the time being in force to execute this Deed of Gift in favour of the Donee (s).
That the Donor (s ) has/have paid all the taxes, rates and other outgoings due to the Government, local bodies, revenue, urban and other authorities concerned in respect of the Said Property up to the date of execution of this Deed of Gift and the Donee (s) shall bear and pay the same hereafter. If any arrears are found due for the earlier period, the same shall be discharged/borne by the Donor (s).
That the Donee (s ) is/are entitled to have mutation of his /her / their name(s) in respect of the Said Property in all public records, local body and also to obtain all documents in his/her/their name(s) and the Donor (s) undertake(s ) to help and assist the Donee (s) in all possible manner in getting the Said Property mutated in the name of the Donee (s )in the relevant records of all concerned departments/authorities.
THE SCHEDULE “A” ABOVE REFERRED TO
(DESCRIPTION OF THE ENTIRE PROPERTY)
ALL THAT piece and parcel of ………………… land measuring about ………… Cottahs ……………. Chittacks ………….. sq. ft. more or less land, along with the Complex named ……………having G + ………….. Building lying and situated at Mouza-…………., Pargana–………………., J.L. No………….., Re Su No.-………………… Touzi No…………comprising in R.S. Dag No.-……………………, under R.S. Khatian No.-…………….., corresponding to LR Plot No…………. and LR Khatian No……….., having Municipal Holding No………………….., Road Name ………………, being Premises No.-……………., PIN-………………, under Ward No.-………………within the limits of ………………. Municipality / Municipal Corporation, within the office of ………………….. P.S.-……………… District-……….., and butted and bounded by: –
ON THE NORTH BY: –
ON THE SOUTH BY: –
ON THE EAST BY: –
ON THE WEST BY: –
THE SCHEDULE ”B” ABOVE REFERRED TO –
[Description of the Flat/Unit]
ALL THAT piece and parcel of a demarcated self-contained residential / semi-commercial /office / commercial Flat/ covered garage / open garage being No.………….. on the …………Floor, in Block-…………., having a measurement of …………….. sq. ft. Super built-up area more or less comprising of ………………………….., with ……. Flooring, from Developer’s Allocation within the G Plus………. Building, of age years ……., within the Complex named ……………….. together with
an undivided proportionate share of underneath land and other common amenities and facilities including easement and quasi-easement rights along with restrictions and reservations as stated aforesaid as attached with the Multi-storied Building within the said Complex at Municipal Holding No.-………….., Road, ………………….Being Premises No.-…………., Road………, Pin ………, under Ward No.-………., within the ……………Municipality / Municipal Corporation, under the office of ………. , under P.S.- ………………., District-…………..fully described “A” SCHEDULE hereinabove written.
Annexed Plan marked with Red Border will be treated as part and parcel of this Deed.
– THE SCHEDULE “C”ABOVE REFERRED TO –
[The Common portions]
( clauses 1 to 7 shall be embedded in e deed with check box option )
- Entrance and exists internal roads, and footpath.
- Common durwans/caretaker room, Caretaker Room, Security Camera Room, (if any).
- Boundary walls and main gates.
4. Drainage and sewerage lines and other installations for the same (except only those as are installed within the exclusive are of any unit and/or exclusively for its use).
5. Staircases lobbies on all the floors and vacant area of the ultimate roof of the proposed building (Roof right will not be available for Garage, Shop and Godown owners, but rights attached to the Ground Floor will be available only).
6. Tube well and water supply system, water pumps, water pump rooms, overhead tank, septic tank together with all common plumbing installation for the carriage of water (save only those as are exclusively within for the use of any unit.), community Hall and two-wheeler parking space.
7. Lighting fixtures and fittings in common area from common use.
( Later amenities are to be incorporated in query and the amenities that are to be selected by citizens during filling up of query shall be auto-generated in e deed )
IN WITNESS WHEREOF the parties hereto have hereunto set and subscribed their respective hands and seals after understanding the contents of this Deed of Gift on the day, month and year first above written.
______________________________
Signature of the Donor(s)
_______________________________
Signature of the Donee(s)
SIGNED, SEALED AND DELIVERED
by the Parties at
in the presence of:
1. ———————————–
2. ———————————–
(Witnesses)
NB: Gift Deed Format Courtesy-Government of West Bengal
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