{"id":30854,"date":"2020-04-16T13:06:29","date_gmt":"2020-04-16T07:36:29","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=30854"},"modified":"2020-11-20T16:41:38","modified_gmt":"2020-11-20T11:11:38","slug":"everything-you-need-to-know-about-gift-deed","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/everything-you-need-to-know-about-gift-deed\/","title":{"rendered":"Everything You Need to Know About Gift Deed"},"content":{"rendered":"<h2 class=\"wp-block-heading\">Overview<\/h2>\n\n\n\n<p class=\"has-drop-cap\">The transfer of a <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Property&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Property refers to the legal designation of ownership over valuable items or assets held by an individual or a business. This ownership grants the holder certain legal rights to use, consume,(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/property\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>property<\/a> to someone can take place either for a consideration or without any consideration. Where no monetary transaction is involved in a transfer of property such a transfer is called a <strong><a href=\"https:\/\/enterslice.com\/gift-deed\"><em>deed of gift<\/em><\/a><\/strong>. One may transfer a property to their dear ones out of pure love and affection towards them. Such a process doesn&rsquo;t require any monetary consideration; however; it still goes through the whole legal process. In this article, we shall study various aspects related to making a Gift.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Definition of Gift Deed<\/h2>\n\n\n\n<p>A\ngift deed is a legal document which involves the voluntary transfer of gift\nfrom the donor to someone without any monetary consideration.&nbsp; Such transfer of gift must be registered\nunder the transfer of property act. The donor should be solvent and must not\nuse this as a means to avoid paying tax. The transfer can be made to a person\nor an institution, and the acceptance of the gift must be made by the recipient\nwithin the lifetime of the donor. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are the things that can be transferred to someone as\na Gift?<\/h2>\n\n\n\n<p><em>The following properties are included with respect to a Gift:<\/em><\/p>\n\n\n\n<ul><li>It must be a moveable or an immoveable property<\/li><li>It must be an existing property that means it must exist at\nthe present time and should not be a future property.<\/li><li>The property (Gift) must be transferable.<\/li><li>It should be tangible.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What all inclusions are made in a Gift Deed?<\/h2>\n\n\n\n<p>The\nfollowing details are included in a deed of gift:<\/p>\n\n\n\n<ul><li>The date and place where the deed is being documented<\/li><li>The details of the donor like his name, address, date of\nbirth, father&rsquo;s name<\/li><li>Details of the person to whom the gift is made. Name,\nfather&rsquo;s name, address and the relationship with the donor.<\/li><li>Details of the property gifted<\/li><li>Signatures of the donor and the recipient of the gift<\/li><li>The details of the witnesses present at the time of transfer\nof property, (two witnesses), along with their signatures.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">The Process of Gift deed<\/h2>\n\n\n\n<p><em>The process of transferring a property goes through the following stages for a gift:<\/em><\/p>\n\n\n\n<ul><li><strong>Drafting a gift deed<\/strong><\/li><\/ul>\n\n\n\n<p>A gift deed can be drafted by a lawyer, and the deed\ndescribes what is transferred and to whom it is transferred. A gift is a\ncontract between the one who is gifting, i.e., Donor and the recipient of the\ngift. It is a simultaneous and reciprocal act of giving and take. In order to constitute\na valid gift, the gift should be made voluntarily by a person and without any\ncompulsion and exchange of money.<\/p>\n\n\n\n<ul><li><strong>Acceptance of a Gift<\/strong><\/li><\/ul>\n\n\n\n<p>Acceptance is also an essential legal requirement for a valid\ngift. After a gift is executed, the recipient of the gift must accept the gift\nduring the lifetime of the donor failing which the gift shall be invalid. The\nvalidity of the acceptance can be determined by acts such as taking possession\nof the property.<\/p>\n\n\n\n<ul><li><strong>Registration of the Gift Deed<\/strong><\/li><\/ul>\n\n\n\n<p>The recipient of the gift of an immoveable property can&rsquo;t\nreceive a title to such gift unless it is registered. The title can only be\ntransferred after it is attested by two witnesses during registration and\npost-registration as per section 123 of Transfer of Property Act. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How can a Gift Deed be Registered?<\/h2>\n\n\n\n<p>A\ndeed of gift can be registered under the provisions of the Registration Act,\n1908. The steps followed in its registration are as follows:<\/p>\n\n\n\n<p>Valuation\nof the property is done by a valuation expert of the property that is being\ngifted.<\/p>\n\n\n\n<p>Thereafter stamp duty and transfer duty is paid. It varies from person to person wherein the <strong><em><a href=\"https:\/\/en.wikipedia.org\/wiki\/Stamp_duty\">stamp duty<\/a><\/em><\/strong> is slightly on the lower side for women. Stamp duty is also different from state to state and to find out the rates you can visit the <strong><em>official website<\/em><\/strong> of the state government.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">A Gift Deed in case of a Minor<\/h2>\n\n\n\n<p>A\nperson who owns a property can gift that to some other person as per legal\nrule, but there is an exception to this rule where a donor or the recipient is\na minor. A minor is not eligible to contract; therefore, they cannot transfer\nproperty as a gift. Where the donor of a gift is a minor, the deed shall be\nlegally invalid. <\/p>\n\n\n\n<p>If\nthe recipient of a gift is a minor, a natural guardian may accept that gift on\nhis or her behalf. A guardian may act as a manager of the property that has\nbeen gifted to the minor. In case the gift is onerous, the minor cannot be\nforced to oblige till he or she is a minor. As and when the minor becomes an\nadult, he or she may either accept the gift or may return the gift.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Can mere oral gift of an Immoveable Property be legally valid?<\/h2>\n\n\n\n<p>It\nis vital to know that an immoveable property that is gifted orally and is not\nregistered is not legally valid as per section 123 of the Transfer of Property\nAct. Even if the gift has been delivered, but no legal paperwork has taken\nplace, then it won&rsquo;t confer any title.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are the Essentials of a valid Gift Deed?<\/h2>\n\n\n\n<p>In\norder to constitute a valid gift, there are few essentials that must be\nfulfilled. These include a declaration by the donor of his intention of gifting\nsomeone. &nbsp;There must be a clear intention\non the part of the donor to make a gift. <\/p>\n\n\n\n<p>Once\na declaration of a gift is made by a donor, the recipient must properly accept\nthe gift. In case the recipient of the gift fails to accept the gift, the gift\nwill become invalid. Religion is not a bar for acceptance of a gift. Even a\nchild in mother womb is also a valid recipient of a gift if he or she is born\nin six months after declaring the gift in that child&rsquo;s favour. <\/p>\n\n\n\n<p>The\ndelivery of the possession of the gift is an important essential of a valid\ngift. The real test of such delivery takes place in order to find out who takes\nadvantage of the gift if it is the donor or the recipient of the gift. In case\nthe advantage is taken by the donor, such a gift shall be invalid. <\/p>\n\n\n\n<p>There\nare two modes of delivery of possession, namely actual and constructive\ndelivery. Actual delivery of a gift means where the property is physically\ndelivered to the recipient of a gift. Only tangible property is covered under\nthis type of delivery. Whereas constructive delivery means where there is a\nsymbolic transfer of a property. It means that the recipient hasn&rsquo;t received\nthe delivery of the property, but the donor has facilitated in a way that\namounts to the fact that the possession has been given.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Conclusion<\/h3>\n\n\n\n<p>A\ngift can be made to your dear and loved ones but with the due legal process.\nThe main feature of the gift is that it is free and doesn&rsquo;t involve any\nmonetary consideration, however; it must be kept in mind that in a gift extra\ncost of stamp duty needs to be paid which may vary from state to state. <\/p>\n\n\n\n<div class=\"read\"><p><b>Also, Read:<\/b> <mark><a href=\"https:\/\/enterslice.com\/learning\/gift-deed-registration-everything-you-need-to-know\/\" target=\"_blank\" rel=\"noopener noreferrer\">Gift Deed Registration: Everything you Need to Know<\/a><\/mark>.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Overview The transfer of a property to someone can take place either for a consideration or without any consideration. Where no monetary transaction is involved in a transfer of property such a transfer is called a deed of gift. One may transfer a property to their dear ones out of pure love and affection towards [&hellip;]<\/p>\n","protected":false},"author":35,"featured_media":30860,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2840],"tags":[2909],"acf":{"service_id":"284"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Everything You Need to Know About Gift Deed - Enterslice<\/title>\n<meta name=\"description\" content=\"A gift deed is a legal document which involves the voluntary transfer of gift from the donor to someone without any monetary consideration.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/everything-you-need-to-know-about-gift-deed\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Everything You Need to Know About Gift Deed - Enterslice\" \/>\n<meta property=\"og:description\" content=\"A gift deed is a legal document which involves the voluntary transfer of gift from the donor to someone without any monetary consideration.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/everything-you-need-to-know-about-gift-deed\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-16T07:36:29+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-11-20T11:11:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/Everything-you-need-to-know-about-Gift-Deed.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"670\" \/>\n\t<meta property=\"og:image:height\" content=\"352\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Ashish M. Shaji","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/10\/04.jpg","authorDescription":"Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on corporate law. He is a creative thinker and has a great interest in exploring legal subjects.","postViews":474,"readingTime":4,"nextPost":{"id":30844,"slug":"nbfcs-to-maintain-liquidity-coverage-ratio-high-quality-liquid-assets"},"prevPost":{"id":30846,"slug":"basic-overview-of-the-concept-of-sale-deed"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/Everything-you-need-to-know-about-Gift-Deed.jpg","postTerms":"General Agreement","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/30854"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/35"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=30854"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/30854\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/30860"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=30854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=30854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=30854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}