PROJECT ON

DPC
“What is gift deed in details? Explain with a sample Format.”

Submitted To: - Prof. Sushant Maggu

Submitted By: - Nancy VijayKumar Sharma

Date of Submission: - 03/April/2023

ID NO.: -80
LLB 1st Year – 2022-2023

KLE COLLEGE OF LAW,

NAVI MUMBAI
 ACKNOWLEDGEMENT

The success and final outcome of research paper required a lot of guidance and assistance
from many people and I’m extremely fortunate to have got this along the completion of the
research project. Whatever I have done is only due to such guidance and assistance and I
would not forget to thank them I respect and thank Principal DINKAR GITTE, and
Professor SUSHANT MAGGU for giving me this opportunity to do this research work and
providing me all support and guidance which made me complete the research work on time.

I am extremely grateful to her for providing such a nice support and guidance for converting
my thoughts into reality and for encouragement to prepare the project of DPC The research
to enhance my ability in the field of law. I am grateful because I managed to complete this
assignment within the given time. This assignment would not have completed without effort
and cooperation from my teachers hence once again, I would like to express my gratitude to
them.
Introduction

Gifts are governed by Transfer of Property Act, 1882. A gift can be given of any property -

Movable or

Immovable.

As per Sec 122, for a Gift to be valid -

1. The property that is to be gifted must be in existence at the time of making the gift
(for example, future expected crop produce cannot be gifted)
2. The donor must be the lawful owner of the property
3. Must be voluntary
4. Must be without consideration
5. Must be accepted by the donee

As per S. 123, if the gift is of an immovable property, the gift deed must be registered and
attested.

The gift of a movable property can be effected by registration or by delivery of the property.

A Gift Deed is a legal document elucidating the voluntary transfer of the property – movable
or immovable – to someone else without any monetary exchange. The property owner can
hand it over either to a person or an institution; however, it should be accepted by the donee
(recipient) during the lifetime of the donor and should be registered under Section 122 of the
Property Transfer Act, 1882 with the sub-registrar as per Section 17 of the Registration Act,
1908. Like a Sales Deed, Gift Deed also comprises the details of the transferor and the
recipient.

Having a registered gift deed in place helps avoid any sort of litigation that may arise in
future.

What Is Gift Deed?

A gift deed is a type of legal instrument that can be used to transfer ownership of both
moveable and immovable property. A property transfer that is made willingly and for which
there is no remuneration is known as a "gift deed." The act of gift-giving is typically
motivated by feelings of affection and love. To give one specific illustration, let's say that a
grandparent gives some of his or her ancestry-related property as a present to the grandkids
that they have. Section 122 of the Transfer of Property Act from 1822 governs the terms and
conditions of a gift deed. In addition, in accordance with Section 117 of the Registration Act,
it is necessary to register an immovable property that has been handed away as a present.

Eligibility for gift deed

To document a gift deed, the donor should be competent. According to the law, a donor
should not be a minor. On the contrary, the recipient can be a minor with a natural guardian
as a nominee, who shares the onus of managing the property till the donee becomes an adult.
Additionally, the beneficiary should be alive; else, the property will become invalid.
 Inclusions in a deed

A gift deed must include the following details:

 Date and place of where the deed is documented

 Donor’s details (Name, Date of Birth, Father’s Name, and Address)
 Details of the donee (Name, Father’s name, Date of Birth and Relationship with the Donor)
 Relationship between the donor and the donee
 Elucidation of the property gifted
 Signatures of both- the donor and the donee
 Details of two witnesses present at the time of property transfer
 Signature of the witnesses

Process of transferring a property via a Gift Deed

Gift deed draft

Aditya Khadri, a Legal Expert, shares that a gift deed is a legal document that includes details
pertinent to the property transfer and is prepared with the help of an attorney. It should
contain important details of the transferee. The transfer should be voluntary and should not be
a forceful act.

Acceptance of the deed

The acceptance process of the gift transfer is completed only when the donee receives the
property while the donor is alive. The acceptance can be validated by taking possession of the
property.

Registration

The ownership transfer under a gift deed can only take place for a registered property. A
minimum of two witnesses are required to attest to the deed. Usually, the number of
witnesses required varies from state to state.

Documents required to register a Gift Deed

One needs to produce the original gift deed, as well as an ID proof, PAN card, Aadhaar card,
the sale deed of the property, as well as other documents pertaining to other agreements.

Stamp duty on gift deed

Registration of a gift deed involves stamp duty and registration fee. The amount of stamp
duty varies across different states. Generally, the stamp duty rates for property transferred by
gift is the same as the sale of conveyance deed.

For instance, in Delhi, the stamp duty for property transferred by sale or gift deed is the
same- four percent for men and six percent for women.

Similarly, in West Bengal, stamp duty for men is five percent of the market value of the
property in panchayat areas and six percent in municipal areas.
 However, in Karnataka, while family members are required to pay anywhere between Rs
1,000 and Rs 5,000, and non-family members are charged 5.6 percent of the total property
value.

Recently, the Uttar Pradesh government also waived off the stamp duty on properties
transferred to family members. Earlier the applicable stamp duty on such transactions in the
State was seven percent of the property value.

Many States also offer discounts on the registration fee if the property is gifted.

Is there a need to pay stamp duty for a property gifted to an NGO or a trust?

In usual cases, gifting a property to a trust/NGO/charity centre does not incur any stamp duty.
However, you must check with your registrar department, regarding the rules. Also, in many
cases, certain State regulations bar NGOs from accepting property as a gift.

How to cancel a gift deed?

According to Section 126 of the Transfer of the Property Act, a gift deed can be revoked if it
complies with following conditions:

 There is a mutual consensus between the donor and the donee that the deed should be
revoked.
 The property transfer event was just based on the will of the transferor and the recipient was
unwilling to accept the asset.
 The condition is illicit, repugnant and immoral to the estate created under the Gift.

This means a gift, which is based on fraud, or any illegal grounds can be revoked. However,
it is recommended to consult a legal expert to help through the process.

Remember, once the gift deed is prepared, revocation is not possible unless a clause of
revocation is added to the deed. Therefore, it is imperative to add ‘revocation clause’ to avoid
future complications.

What are the key documents required for registration of gift deed in 2023?
 The duly executed, and stamped, Gift Deed must be presented to the office of the
local Sub-Registrar of Assurances for registration.
 Some states may require the advocate, or registered deed-writer, who drafted the Gift
Deed to affix a declaration, and their registration number, on the Deed.
 A true certified copy of the Gift Deed. This copy will be retained by the registering
authority. The Registration Rules of the state in which the Deed is being registered
will specify the procedure for making a true certified copy of the Deed.
 Proof of payment of the registration fees payable, if any.
 Identity, and Address, Proofs of all the parties and the attesting witnesses.

Those who read this Article also consulted a Lawyer about Gift Deed and Property
Transfer.
The Difference between a Gift Deed and a Property Sale

You immediately become the owner of any property that is given to you as a gift after it has
been transferred to you. It is possible to sell the property that was gifted. But, a property sale
is not the same as transferring ownership through a gift deed. A certain amount of money
must be exchanged in order to transfer ownership of property when a property is sold. A gift
deed is one that is done voluntarily and does not involve the exchange of any money. Hence,
once you have successfully registered the gift deed and are the owner of the property, you are
free to sell the property that was gifted to you in exchange for payment. Drafting a gift deed
for an immovable property may involve many legal implications, such as tax considerations.
Prefer hiring a lawyer to draft a gift deed for immovable property.

Detail of stamps with number and date GIFT DEED

This deed of Gift is executed on ________ day of ______________ month _____________

year by Sri./Smt.__________________________, S/o./ W/o._______________________,
occupation____________________, and aged__________ year residence at
______________________________ _______________________ . herein after called the
DONOR. In favour of Sri./Smt. __________________________ S/o./W/o._______________
_________________________, occupation ____________________, aged ______ __ years,
residing at ______________________________________________
____________________________________________________. __ Herein referred to as the
DONEE.

Whereas, the term Donor and Donee unless repugnant to the context shall mean and include
their representatives heirs, successors, executors, administrators, trustees, legal
representatives and assigns.

Whereas, the Donor herein, is the sole and absolute owner of immovable property 3 bearing
No.___________ known as _____________________ situated at _____________________
described in the schedule hereunder written and herein after called the schedule property.

Whereas, the Donor is the absolute owner, having acquired the property, by____ ___ and
since then Donor has been in possession and enjoyment of the schedule property and paying
taxes and levies thereon, as sole and absolute owner thereof.

Whereas the Donee is related to the Donor as ____________.

Whereas the Donor desires to grant the said land and premises described in the schedule
written hereunder and hereinafter referred as scheduled property to the Donee as gift in
consideration of natural love and affection subject to the condition herein after mentioned.
NOW THIS DEED WITNESSETH that the Donor, without any monitory consideration and
in consideration natural love and affection which the Donor bears to the Donee hereby grant
and transfer by way of gift, the scheduled property situated at
___________________________together with all the things permanently attached thereto or
standing thereon and all the liberties, privileges, easements and advantages appurtenant
thereto and all the estates, rights, title, interest, use, inheritance, possession, benefits, claims
and demand whatsoever of the Donor TO HAVE AND TO HOLD the same unto the use of
the Donee absolutely but subject to the payment of all taxes, rates, assessments, dues and
duties now and here after chargeable thereon to the Government or local authorities.

Whereas the Donor hereby covenant with the Donee;

(a) That the Donor now has in himself, absolute right, full power, and absolute authority
to grant the said scheduled property hereby granted as gift in the manner aforesaid.
(b) The Donee may at all times herein after peacefully and quietly enter upon, take
possession of the scheduled property and enjoy the said scheduled property as he
deems fit without any interruption, claim or demand whatsoever from or by the Donor
or his heirs, executors, administrators and assigns or any person or persons lawfully
claiming or to claim by from under or in trust for the Donor.
(c) AND FURTHER that the Donor and all persons having or lawfully claiming any
estate or interest whatsoever to the said scheduled property and premises or any part
thereof from under or in trust for the Donor or his heirs, executors, administrators and
assigns or any of them shall and will from time to time and at all times hereafter at the
request and cost of the Donee do and execute or cause to be done and executed all
such further and other acts, deeds, things, conveyances and assurances in law
whatsoever for better and more perfectly assuring the said scheduled property and
every part thereof unto and to the use of the Donee in the manner aforesaid as by the
Donee his heirs, executors, administrators and assigns or counsel in law shall be
reasonably required.

SCHEDULE OF THE PROPERTY (Gifted under this deed)

All the piece and parcel of immovable property 5 bearing No.____________ Measuring
_______________

Bounded by:-

On the East:-
On the West:-
On the South:-
On the North:-

Market value of the property gifted under this deed is Rs.

(Rupees____________________________________only).

The Stamp duty is paid on the market value as computed above. IN WITNESS WHEREOF
the Donor as well as the Donee (by way of acceptance of the said gift) have put their
respective hands the day and year first herein above written. WITNESSES:

1. DONOR
2. DONEE

A sample Gift Deed

Gift Deed for an Immovable Property- Draft-II
KNOW ALL MEN BY THESE PRESENTS that I, _____________ S/o Sh.___________ r/o
____________________, transfers voluntarily, the property bearing no.___________ situated
at _______________ (more particularly described in the schedule annexed hereto), the
estimated value of which is Rs._____________ (Rupees_____________ only) to my
daughter Smt.____________ w/o of Sh._________________ (hereinafter referred to as "the
donee") To Hold the same to the donee absolutely forever. I further declare that the said gift
has been made by me out of my natural love and affection for the donee and the same has
been accepted by the donee.

IN WITNESS WHEREOF, I have executed this deed this ________ day of __________.

Witness:

1.

DONOR

2.

DONEE

I, Smt. ______________, the donee hereby accept the gift of the said property.

-------------------------------------------------------------------------------------------------------------

Conclusion

To summarise, using a gift deed to transfer property from one person to another can be an
efficient way to complete the transaction. It is a legal document that explains the terms and
conditions of the gift, including the identities of the donor and the recipient, the property that
is being gifted, and any conditions or restrictions that may apply to the transaction. The use of
a gift deed can be an extremely useful instrument for minimising the risk of legal
complications and disagreements throughout the process of transferring ownership of
property. Yet, it is essential to have a solid understanding of the legal requirements and
ramifications that come along with a gift deed, as well as any potential tax repercussions that
may be applicable. It is always best to contact with a knowledgeable legal practitioner
regarding any legal situation to ensure that your rights and obligations are safeguarded and
that you fully understand the terms and circumstances of the gift deed. This is true regardless
of the nature of the legal issue at hand. A gift deed can be an effective way to transfer
property and help the financial well-being of your loved ones provided it is carefully planned
out and guided by an experienced professional.