{"id":100837,"date":"2020-07-17T05:12:35","date_gmt":"2020-07-17T05:12:35","guid":{"rendered":"https:\/\/legalwindow.in\/?p=100837"},"modified":"2021-08-13T16:22:44","modified_gmt":"2021-08-13T10:52:44","slug":"drafting-of-gift-deed-in-india","status":"publish","type":"post","link":"https:\/\/www.legalwindow.in\/blog\/drafting-of-gift-deed-in-india\/","title":{"rendered":"Drafting of Gift Deed in India"},"content":{"rendered":"\r\n<p style=\"text-align: justify;\">When you transfer property to someone, it can take place either for a consideration or without consideration. So when you transfer property to someone without consideration or any monetary dealing, such transfer is known as Gift Deed. Anyone can transfer any property to their dear ones which may be out of pure affection or love towards them. This process of transferring does not require any kind of monetary transaction. However, such process also requires to go through the complete legal process. In this below article, we look into the drafting and legal aspects of Gift Deed.<\/p>\r\n\r\n\r\n\r\n<table style=\"border: 1px solid #ddd; text-align: left; margin-top: 1px;\" width=\"100%\">\r\n<tbody>\r\n<tr>\r\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><strong style=\"padding: 10px;\">Page Content<\/strong>\r\n<ul>\r\n<li style=\"list-style-position: inherit; text-indent: 0px; padding: 3px;\"><a href=\"#meaning\">Meaning of Gift Deed<\/a><\/li>\r\n<li style=\"list-style-position: inherit; text-indent: 0px; padding: 3px;\"><a href=\"#things\">Things which can be transferred as a Gift<\/a><\/li>\r\n<li style=\"list-style-position: inherit; text-indent: 0px; padding: 3px;\"><a href=\"#details\">Important Details included on a Gift Deed<\/a><\/li>\r\n<li style=\"list-style-position: inherit; text-indent: 0px; padding: 3px;\"><a href=\"#process\">Process of Gift Deed in India<\/a><\/li>\r\n<li style=\"list-style-position: inherit; text-indent: 0px; padding: 3px;\"><a href=\"#register\">How to register a Gift Deed?<\/a><\/li>\r\n<li style=\"list-style-position: inherit; text-indent: 0px; padding: 3px;\"><a href=\"#docuemnts\">Documents Required for registration of Gift Deed<\/a><\/li>\r\n<li id=\"meaning\" style=\"list-style-position: inherit; text-indent: 0px; padding: 3px;\"><a href=\"#rule\">Rule for Gift to Minor<\/a><\/li>\r\n<li style=\"list-style-position: inherit; text-indent: 0px; padding: 3px;\"><a href=\"#clauses\">Important Clauses in a Gift Deed<\/a><\/li>\r\n<li style=\"list-style-position: inherit; text-indent: 0px; padding: 3px;\"><a href=\"#takeaway\">Takeaway <\/a><\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n\r\n\r\n\r\n<h3><strong>Meaning of Gift Deed<\/strong><\/h3>\r\n\r\n\r\n\r\n<p id=\"things\" style=\"text-align: justify;\">A Gift deed is a kind of legal document which is used while voluntary transferring a gift from one person to another without any monetary value. Such type of transferring of gift, must however be registered as per rules and regulations of Transfer of Property Act. The person giving the gift must be solvent and should not use this method to restrict himself from paying tax. Transfer of gift can be made to any individual or institution and the person to whom the gift is given must accept it within the life span of the giver.<\/p>\r\n\r\n\r\n\r\n<h3><strong>Things which can be transferred as a Gift<\/strong><\/h3>\r\n\r\n\r\n\r\n<p>Legally, the following gifts can be made to the other person:<\/p>\r\n<ul>\r\n<li class=\"lists\">Movable or Immovable Property<\/li>\r\n<li id=\"details\" class=\"lists\">Existing property, and not a future property<\/li>\r\n<li class=\"lists\">Gift that can be transferable<\/li>\r\n<li class=\"lists\">Tangible Gift<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h3><strong>Important Details included on a Gift Deed<\/strong><\/h3>\r\n\r\n\r\n\r\n<p>A Gift Deed includes the following important details:<\/p>\r\n<ul>\r\n<li class=\"lists\">Date and Place of documentation of Gift Deed<\/li>\r\n<li class=\"lists\">Details of person giving the gift including his name, residential address, date of birth etc.<\/li>\r\n<li class=\"lists\">Details of person receiving the gift including his name, residential address, relationship with the donor etc.<\/li>\r\n<li id=\"process\" class=\"lists\">Complete details of the property to be gifted<\/li>\r\n<li class=\"lists\">Valid Signature of the transfer or and transference<\/li>\r\n<li class=\"lists\">Witness details of at least two people present during the transfer of property<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h3><strong>Process of Gift Deed in India<\/strong><\/h3>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"538\" class=\"wp-image-100842\" title=\"Drafting of Gift Deed in India\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/How-to-start-an-e-commerce-business_company-in-india-13-1024x538.png\" alt=\"Drafting of Gift Deed in India\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/How-to-start-an-e-commerce-business_company-in-india-13-1024x538.png 1024w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/How-to-start-an-e-commerce-business_company-in-india-13-600x315.png 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/How-to-start-an-e-commerce-business_company-in-india-13-300x158.png 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/How-to-start-an-e-commerce-business_company-in-india-13-768x403.png 768w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/How-to-start-an-e-commerce-business_company-in-india-13.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\r\n\r\n\r\n\r\n<p>The process of transferring a property through a gift deed goes through the following stages in India:<\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"903\" height=\"203\" class=\"wp-image-100839\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/Screenshot-127.png\" alt=\"\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Screenshot-127.png 903w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Screenshot-127-600x135.png 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Screenshot-127-300x67.png 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Screenshot-127-768x173.png 768w\" sizes=\"auto, (max-width: 903px) 100vw, 903px\" \/><\/figure>\r\n\r\n\r\n\r\n<p><strong>Step 1: Drafting of Gift Deed<\/strong>: If you plan to transfer a gift to someone, make sure a well drafted gift deed is prepared by a professional lawyer describing what is transferred and to whom it is going to be transferred. <a href=\"https:\/\/legalwindow.in\/\">Legal Window<\/a> has a team of experienced lawyers who can draft a gift deed on your behalf. A Gift deed acts as a legal contract defining the relationship of the donor and donee as giver and taker. A Valid gift deed must be prepared mentioning about no exchange of money, as gift is voluntary in nature.<\/p>\r\n\r\n\r\n\r\n<p><strong>Step 2: Acceptance of Gift Deed<\/strong>: Once the gift deed is executed, the next legal requirement is that of acceptance of gift by the recipient. The gift must be accepted during the life span of the donor. If in case it is not accepted by receiver during such time, it will be considered as invalid. The acceptance will be valid only after taking possession of property.<\/p>\r\n\r\n\r\n\r\n<p id=\"register\"><strong>Step 3: Registration of the Gift Deed<\/strong>: As per Section 123 of the Transfer of Property Act, the title of the immovable property must be transferred and duly registered. It is compulsory to be attested by at least two witnesses and post registration process must also be properly done. After this, the title of the property will be transferred to the recipient.<\/p>\r\n<p>\r\n\r\n<\/p>\r\n<h3><strong>How to register a Gift Deed?<\/strong><\/h3>\r\n<p>\r\n\r\n<\/p>\r\n<p style=\"text-align: justify;\">A gift deed has to be registered under the provisions of the <a href=\"https:\/\/www.indiacode.nic.in\/bitstream\/123456789\/13236\/1\/the_registration_act%2C_1908.pdf\">Registration Act, 1908<\/a>. After drafting and acceptance of Gift deed, following necessary steps must be taken care of while registering a deed:<\/p>\r\n<p>\r\n\r\n<\/p>\r\n<ul class=\"wp-block-list\">\r\n<li class=\"lists\">Gift deed must be printed on stamp paper of considerable value<\/li>\r\n<li class=\"lists\">Valuation of property must take place by a experienced valuation expert which needs to be gifted<\/li>\r\n<li id=\"documents\" class=\"lists\">Stamp duty and transfer duty must be paid which varies from state to state and for men and women. Rate of Stamp duty is lower for women. For more details you can visit the official website of the state government.<\/li>\r\n<li class=\"lists\">Register the gift deed at the Registrar\/Sub-Registrar office of your area\/location.<\/li>\r\n<\/ul>\r\n<h3><a href=\"https:\/\/legalwindow.in\/shareholders-agreement\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-103886\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/Draft-image.jpg\" alt=\"\" width=\"1000\" height=\"200\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Draft-image.jpg 1000w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Draft-image-600x120.jpg 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Draft-image-300x60.jpg 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Draft-image-768x154.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/a><\/h3>\r\n<h3><strong>Documents Required for registration of Gift Deed<\/strong><\/h3>\r\n<p>\r\n\r\n<\/p>\r\n<p style=\"text-align: justify;\">Once Gift deed is signed and attested by two witnesses, you need to carry on following documents while visiting Registrar\/Sub-Registrar Office<\/p>\r\n<p>\r\n\r\n<\/p>\r\n<ul class=\"wp-block-list\">\r\n<li class=\"lists\">Copy of Aadhar Card<\/li>\r\n<li class=\"lists\">ID Proofs like Passport or Driving License etc.<\/li>\r\n<li class=\"lists\">PAN Card of the donor and the donee<\/li>\r\n<li class=\"lists\">Copy of sale deed of the title of the property<\/li>\r\n<li id=\"rule\" class=\"lists\">Encumbrance Certificate<\/li>\r\n<li class=\"lists\">Ready reckoner value document of the property<\/li>\r\n<li class=\"lists\">Other legal agreements related to subjected property<\/li>\r\n<\/ul>\r\n<p>\r\n\r\n<\/p>\r\n<p>Apart from the above list, you might need other documents also which differs from state to state.<\/p>\r\n<p>\r\n\r\n<\/p>\r\n<h3><strong>Rule for Gift to Minor<\/strong><\/h3>\r\n<p>\r\n\r\n<\/p>\r\n<p style=\"text-align: justify;\">As per legal provisions, a person who owns a property is allowed to gift it to other person. However, this is not the case when the recipient is a minor. It is because a minor is not eligible to enter into a legal agreement and he cannot receive property as a gift. Hence, the gift deed in case of minor will be invalid as per the law.<\/p>\r\n<p>\r\n\r\n<\/p>\r\n<p id=\"clauses\" style=\"text-align: justify;\">However, a natural guardian may accept the gift on behalf of a minor. The guardian will act like a manager of such property which has been gifted to the minor. The minor, once becomes adult, may either accept or return the gift.<\/p>\r\n<p>\r\n\r\n<\/p>\r\n<h3><strong>Important Clauses in a Gift Deed<\/strong><\/h3>\r\n<p>\r\n\r\n<\/p>\r\n<p>The Important clauses in a Gift Deed includes:<\/p>\r\n<p>\r\n\r\n<\/p>\r\n<ul class=\"wp-block-list\">\r\n<li class=\"lists\">Clause of Consideration<\/li>\r\n<li class=\"lists\">Possession of Property<\/li>\r\n<li class=\"lists\">Details and description of property<\/li>\r\n<li class=\"lists\">Free Will<\/li>\r\n<li id=\"takeaway\" class=\"lists\">Relationship of the Donor and the Donee<\/li>\r\n<li class=\"lists\">Rights and Liabilities of the donor and donee<\/li>\r\n<li class=\"lists\">Delivery of Property<\/li>\r\n<li class=\"lists\">Clause of Revocation<\/li>\r\n<\/ul>\r\n<p>\r\n\r\n<\/p>\r\n<h3><strong>Takeaway<\/strong><\/h3>\r\n<p>\r\n\r\n<\/p>\r\n<p style=\"text-align: justify;\">You can made a gift to your dear and loved ones which will shift the ownership from one person to another. Gift deed acts as a legal evidence of transferring property from donor to donee. One of the main essential of such gift is that does not involve any monetary transaction. However, extra cost of stamp duty needs to be paid which differs from state to state.<\/p>\r\n<p>\r\n\r\n<\/p>\r\n<p>For more information, contact experts at Legal Window now.<\/p>\r\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p>When you transfer property to someone, it can take place either for a consideration or without consideration. So when you transfer property to someone without consideration or any&hellip;<\/p>\n","protected":false},"author":5,"featured_media":100840,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-100837","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-agreement-drafting"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Drafting of Gift Deed in India &#187; Legal Window Jaipur<\/title>\n<meta name=\"description\" content=\"Step by Step Guide about Drafting of Gift Deed in India, Meaning of Gift Deed, Process of Gift Deed in India, How to register a Gift Deed?, etc.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalwindow.in\/blog\/drafting-of-gift-deed-in-india\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Drafting of Gift Deed in India &#187; 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Her expertise, inter-alia, is in regulatory approvals, licenses, registrations for any organization set up in India. She posse\u2019s good exposure to compliance management system, legal due diligence, drafting and vetting of various legal agreements. 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