Defined under Section 122 of the Transfer of Property Act, 1882, any immovable property can be transferred through a gift deed. Similar to a sale deed except that no money is paid in the transfer of the property, a gift deed too has to be registered with the sub-registrar office under section 17 of the Registration Act, 1908, and as per section 123 of the Transfer of Property Act. Failing to do this, would render the contract invalid.
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Parties
The person giving the gift is known as the donor and the one receiving the gift is known as the donee. For the gift to be valid, the gift should be made and accepted during the lifetime of the donor and the donee.
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Deed of gift
If an immovable property is being given as a gift, it amounts to transfer of property and must be made in writing through a gift deed. This deed needs to be signed by the donor and the donee in the presence of two witnesses.
Unless there is a pact between the contracting parties stating that the gift can be revoked on the occurrence of a certain event, a gift can't be revoked. Section 126 of the Property Transfer Act provides for situations wherein a gift deed may be revoked by the donor. It's often advised to add a clause of revocation while executing a gift deed in order to avoid glitches.
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Taxation on gift
Under Section 56 (2) (vii) of the Income Tax Act, 1961, a gift is not taxable if it is received by an individual or Hindu undivided family from any blood relative, as inheritance, as marriage gift or in contemplation of death. Under other circ*mstances if the aggregate of gifts received exceeds Rs 50,000 in a year, then the gift becomes taxable.
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Registration of gift deed
A gift deed must be registered with the local sub-registrer office in the presence of both the parties concerned. A nominal registration fee needs to be paid along with the submission of the gift deed, purchase agreement with Index II of the property, society registration certificate, share certificate, and Aadhaar and PAN card of both parties.
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Stamp duty
The stamp duty on gift deed varies from state to state. If the gift is being made to a close relative, a lower stamp duty is applicable, compared to normal transfer of property to some other person. While in Punjab, no stamp duty has to be paid, if the property is to be transferred between blood relations; the Maharashtra government charges a nominal Rs 200 if the property is gifted to blood relations such as parents, spouse or siblings.
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As an expert in property law and real estate transactions, I have extensive knowledge of the legal intricacies involved in transferring property through various means, including gift deeds. I can provide a comprehensive understanding of the concepts mentioned in the article authored by Shaveta Dua. Here's a breakdown of the key concepts:
Transfer of Property Act, 1882: This legislation governs the transfer of ownership rights in properties in India. Section 122 of this act specifically deals with the transfer of immovable property through a gift deed.
Gift Deed: A gift deed is a legal document used to transfer ownership of an immovable property from a donor to a donee without any monetary exchange. It must be executed in writing and registered under Section 17 of the Registration Act, 1908, with the sub-registrar office. Failure to register can render the contract invalid.
Parties Involved: The donor is the person giving the gift, and the donee is the recipient. For a gift to be valid, it must be made and accepted during the lifetime of both parties.
Deed of Gift Execution: When an immovable property is gifted, it requires a written gift deed signed by the donor and donee in the presence of two witnesses.
Revocation of Gift: Unless there's a clause allowing revocation under certain circ*mstances specified in the deed, a gift generally cannot be revoked. Section 126 of the Transfer of Property Act deals with situations where a gift deed may be revoked by the donor.
Taxation on Gift: The Income Tax Act, 1961, governs the taxation on gifts. Gifts received from blood relatives, as inheritance, as marriage gifts, or in contemplation of death are not taxable. However, if the aggregate of gifts exceeds Rs 50,000 in a year from other sources, it becomes taxable.
Registration of Gift Deed: A gift deed needs to be registered at the local sub-registrar office. It requires the payment of nominal registration fees along with the submission of specific documents such as Aadhaar and PAN cards of both parties, purchase agreements, society registration certificates, etc.
Stamp Duty: Stamp duty on gift deeds varies across states. Lower stamp duty is applicable when gifting to close relatives compared to non-relatives. Some states, like Punjab, exempt stamp duty on property transfer between blood relations, while others, like Maharashtra, charge nominal fees for gifting to family members.
Understanding these concepts is crucial when dealing with property transfers, ensuring legal compliance, and understanding the financial implications involved in gifting immovable properties in India.
Introduction: My name is Greg Kuvalis, I am a witty, spotless, beautiful, charming, delightful, thankful, beautiful person who loves writing and wants to share my knowledge and understanding with you.
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