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Gift Deed
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Gift Deed
A Gift deed is a legal document that describes the voluntary transfer of gift from the donor (owner of the property) to done (receiver of gift) without any exchange of money. The donor must be solvent and should not use this tool for tax evasion and illegal gains
A Gift Deed is a legal document that describes the voluntary transfer of gift from the donor (owner of the property) to done (receiver of gift) without any exchange of money. The donor must be solvent and should not use this tool for tax evasion and illegal gains.
WHAT CAN BE GIFTED?
Anything which qualifies as gift must have the following properties
It must be well defined existing movable or immovable property
It must be transferable
It should exist today and should not be a future property
It should be tangible.
WHAT ARE THE PRIMARY FACTORS INVOLVED IN DRAFTING A GIFT DEED?
Firstly, Gift deed must be made within blood relation and family only.
The donor cannot be a minor and must be above the age of 18 years.
The transfer should be a voluntary decision of Donor and must not be a forceful act.
Gift deed must be accepted by Donee.
Registration of Gift Deed with requisite fees.
WHETHER REGISTRATION OF GIFT DEED IS COMPULSORY?
Yes, because the validity of transfer of property in the form of a Gift deed is dependent on its registration solely because there is no exchange of monetary units involved. Registration must be done in the presence of two witnesses and the gift deed must be attested by them. Also, you have to pay the stamp duty of requisite value for registration of Gift deed. The stamp charges and registration fees differ from state to state that is mentioned below.
|
Sl. No. |
Name of the State |
Stamp Duty Charges |
Registration Fees |
|
1. |
Andhra Pradesh |
For Family Members- 2% of Market Value. For Outsiders- 5% of Market Value. |
1% of Market Value subject to a minimum of Rs.1000 and maximum of Rs.20000/- (Within family) For Outsiders- 1% of Market Value. |
|
2. |
Delhi (UT) |
4% of Circle rates (if donee is women) If Male- 6% of Circle rates |
1% of Circle rates |
|
3. |
Jharkhand |
2% on the value of the deed |
2% on the value of the deed |
|
4. |
Karnataka |
Rs. 1000 (Within Family) & 5.6% of Market Value (outsider). |
Rs. 500 (Within Family) & 1% of Market Value (outsider). |
|
5. |
Madhya Pradesh |
2.5% of Market Value |
0.8% of Market Value |
|
6. |
Odisha |
5% of Market Value |
2% of Market Value |
|
7. |
Telangana |
For Family Members- 3% of Market Value. For Outsiders- 6% of Market Value. |
0.5% of Market Value subject to a minimum of Rs.1000 and maximum of Rs.20000/- (Within family) For Outsiders- 0.5% of Market Value. |
|
8. |
West Bengal |
0.5% of Market Value |
Up to Rs.5000/- Rs.9/- Above Rs.5000/- 1.1% of Market Value |
|
9. |
Bihar |
5.7% of Estimated Minimum Value (for females) and 6.3% of Estimated Minimum Value (for males) |
1.9% of Estimated Minimum Value (for females) and 2.1% of Estimated Minimum Value (for males)
|
|
10. |
Gujarat |
4.9% of Market Value or Consideration (whichever is higher) |
1% of Market Value or Consideration whichever is higher |
|
11. |
Himachal Pradesh |
4% of Circle rates (if donee is women) If Male- 6% of Circle rates |
2% of circle rates subject to a maximum of Rs.25000/- |
|
12. |
Kerala |
Rs.1000/- (if within family member) and 5% of Fair Value of land (outsider) |
1% of Fair Value of land |
|
13. |
Puducherry (UT) |
Rs. 5000/- |
0.5% of Guideline value |
|
14. |
Punjab |
NIL (within family) and 5% of Collector rate (outsider) |
1% on Collector rate (max Rs.200000/-) |
|
15. |
Tamil Nadu |
1% of Guideline Value subject to a maximum of Rs.25000/- (within family) 8% of Guideline Value (outsider) |
1% of Guideline Value subject to a maximum of Rs. 4000/- (within family) 1% of Guideline Value (outsider) |
Income tax implications on gift of property
According to income tax laws, the value of all the gifts received by a person during a year is fully exempt, as long as the total of such gifts does not exceed Rs 50,000 in a year. If the value of all the gifts taken together exceeds Rs 50,000, then, the aggregate of the gifts received become taxable without any threshold exemption. However, income tax laws also give a favourable treatment, to gifts between two close relatives.
Can a registered gift deed be cancelled?
A registered gift deed cannot be cancelled or revoked. However, one can seek legal remedy if the deed was executed by coercion or undue influence on either of the parties. This process can be painful and cumbersome as this will be contested in a competent court. An unregistered gift deed can be revoked as it holds no validity.
CREATE GIFT DEED WITH ACRE OK.
Now consider yourself in safe hands because Acre ok is ready to help you for creating a gift deed. You have to just type all the necessary details and your Gift Deed is ready. There is absolutely no need for you to find anyone because we print it on E-Stamp paper of due value and ship it to an address of your choice!
Just, click on the Create button and start your drafting right now!!
Frequently Asked Questions
Any person who is the legal owner of a property, legal means his name should be there on the papers and the registry records, he can gift that property to anyone.
No, a Minor under the age of 18 years cannot receive gift, though his guardian on his behalf can receive such gifts for him/her
Transfer of Property Act, 1882 is the governing law.
A transfer of property may be made without writing, if it is not expressly required by law. Gifts under the Islamic law may be made orally, as it does not require registration.
Yes, it can be sold if there is no condition attached at the time of registration.
An NRI (Non-Resident Indians) or a PIO (Person of Indian Origin) is eligible to receive property as a gift. The donor has to be a resident of India/NRI/PIO.
[The property to be transferred as a gift must be either a commercial property or a residential property, but not agricultural land, plantation property or farmhouse in India.]
[The property to be transferred as a gift must be either a commercial property or a residential property, but not agricultural land, plantation property or farmhouse in India.]
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