Gift Deed

A gift deed is a legal document used to voluntarily transfer ownership of property, movable (like cash, jewellery, or shares) or immovable (like land or a house), from one person (the donor) to another (the donee) without any exchange of money. According to the Transfer of Property Act, 1882, the gift must be in writing, signed by the donor, and accepted by the donee during the donor’s lifetime. For it to be legally valid, it must also be registered.

Once registered, the donee becomes the legal owner of the property. While no payment is made, stamp duty and registration charges may still apply depending on the state and type of property. Under Section 56(2)(x) of the Income Tax Act, gifts from close relatives are tax-exempt, but gifts from non-relatives exceeding Rs. 50,000 in a year are taxable as income.

A gift deed is a simple way to legally transfer property without involving money. Here’s why it’s useful:

Note:Gifts from relatives (as per the Income Tax Act) are tax-free, but gifts from non-relatives over Rs. 50,000 in a year are taxable as income.

To make a gift deed legally valid and clear, certain important details must be included in the document:

In India, a gift deed mainly focuses on the free and unconditional transfer of property, done out of love and affection, without taking any money in return. The deed should mention the people involved, property details, and other important terms to avoid legal issues later.