Gift Deed

Before you give a gift to your loved ones, it’s essential to ensure that you comply with tax regulations. Let the Apkireturn Team assist you in understanding and meeting your tax obligations. Your peace of mind is our priority.

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Gift Deed

A Gift Deed is a legal document used to transfer ownership of a property or asset from one person (the donor or giver) to another person (the donee or recipient) without any exchange of money or consideration. Gift Deeds are often used for various purposes, including gifting property, assets or valuables to family members, friends or charitable organizations.

Key Differences

Gift deeds can involve both movable and immovable property. The key difference lies in the type of property being transferred:

Movable property refers to items that can be physically transported, such as jewellery, vehicles, furniture, cash, stocks, and other personal belongings.
When gifting movable property, a gift deed is still used to transfer ownership from the donor to the donee. The gift deed typically includes details about the donor, donee, description of the property and any conditions or restrictions, if applicable.

Immovable property refers to land, buildings, and real estate that cannot be easily moved. These are typically larger assets and include plots of land, houses, commercial properties and agricultural land.
When gifting immovable property, a gift deed is crucial and, in most jurisdictions, must be executed in writing and registered with the relevant government authority or land registry. The specific requirements and procedures for registering an immovable property gift deed can vary by location.
The immovable property gift deed should contain details about the donor, donee, description of the property (including its exact location, size, and boundaries) and any conditions, restrictions or considerations, if applicable.
In many countries, including India, immovable property gift deeds may be subject to stamp duty, which is a government tax on property transactions. The stamp duty amount depends on the property’s value and local regulations.

Taxability of Gift Deeds

In India, gifts received from relatives (as defined under the Income Tax Act) are generally not subject to income tax. Relatives include parents, siblings, spouses and more.
Gifts received from non-relatives are subject to income tax if the total value of gifts received in a year exceeds a specified limit (₹50,000). Any excess amount may be added to the recipient's taxable income.
Gifts of immovable property (such as land or real estate) may also be subject to stamp duty, which varies from state to state.

Chart of Relative as per Income Tax Act 1961

General Gift Deed Format

THIS DEED OF GIFT is made on this [Day] day of [Month], [Year] between:

Donor: [Donor’s Full Name], [Donor’s Address], hereinafter referred to as the “Donor” (which expression shall, unless repugnant to the context, include their heirs, representatives, and assigns) of the ONE PART,

AND

Donee: [Donee’s Full Name], [Donee’s Address], hereinafter referred to as the “Donee” (which expression shall, unless repugnant to the context, include their heirs, representatives, and assigns) of the OTHER PART.

WHEREAS the Donor is absolutely seized and possessed of or otherwise well and sufficiently entitled to the property more particularly described in the Schedule hereunder written.

AND WHEREAS the Donor is desirous of gifting the said property to the Donee out of natural love and affection which he bears towards the Donee.

NOW THIS DEED WITNESSETH AS FOLLOWS:

Gift: The Donor does hereby freely and voluntarily and out of natural love and affection, give, transfer, and assign unto the Donee, the property more particularly described in the Schedule hereunder written, to hold the same unto the Donee absolutely and forever.
Acceptance: The Donee hereby accepts the gift and takes possession of the said property.
Transfer of Property: The Donor declares that the said property is free from any encumbrances, charges, liens, or liabilities whatsoever.
Covenants of the Donor: The Donor covenants with the Donee that notwithstanding any act, deed, matter, or thing whatsoever made, done, or executed to the contrary, the Donor now has in himself/herself good right, full power, and absolute authority to gift the said property in the manner aforesaid.
Indemnity: The Donor hereby agrees to indemnify the Donee against all claims and demands in respect of the said property.

SCHEDULE OF THE PROPERTY

[Provide a detailed description of the property being gifted]

IN WITNESS WHEREOF, the Donor and the Donee have hereunto set their hands and seals the day and year first above written.

SIGNED, SEALED, AND DELIVERED by the Donor
[Donor’s Name & Signature]

in the presence of:
[Name & Signature of Witness #1]
[Address of Witness #1]

[Name & Signature of Witness #2]
[Address of Witness #2]

SIGNED, SEALED, AND DELIVERED by the Donee
[Donee’s Name & Signature]

in the presence of:
[Name & Signature of Witness #1]
[Address of Witness #1]

[Name & Signature of Witness #2]
[Address of Witness #2]

FAQs

What types of property can be gifted through a gift deed?

Movable and immovable properties can be gifted through a gift deed. Movable property includes items like jewellery, vehicles and cash, while immovable property includes land, buildings and real estate.

Do I need to register a gift deed?

In most jurisdictions, gift deeds involving immovable property must be registered with the local government authority or land registry to be legally valid. Registration requirements may vary by location

Can I impose conditions on a gift deed?

Yes, it is possible to include conditions or restrictions in a gift deed, but they must be clearly stated in the document. The donee must adhere to these conditions for the gift to be valid.

Can a gift deed be revoked?

The revocability of a gift deed depends on the type of gift. A revocable gift deed allows the donor to revoke the gift before the donee accepts it. An irrevocable gift deed, once accepted, cannot be revoked by the donor.

What should be included in a gift deed?

A gift deed should include details about the donor and donee, a description of the property being gifted any conditions or restrictions and the date of execution. It must also be signed by the donor and donee in the presence of witnesses, where required.

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