Step-by-Step Guide to Registering a Gift Deed in India

Gift Deed is a legally enforceable instrument through which there is a free transfer of a present movable or immovable property by one individual (the donor) to another (the donee) without consideration. It shall take effect only if the donee accepts the gift in the lifetime of the donor when the donor is capable of giving it. If the donee predeceases, the gift is nugatory with void..

How Can a Donor Transfer Property by Way of Gift?

As per Section 123 of the Transfer of Property Act, 1882, transfer of immovable property must be with a registered deed signed either by or on behalf of the donor and two witnesses. Transfer of movable property can be either by a registered document or by delivery of the gift.

Can a Gift be subject to Obligations?

As per Section 127 of the Transfer of Property Act, 1882, where a gift is in the form of a single transfer to the same person of several things of which one is, and the others are not, burdened by an obligation, the donee can take nothing by the gift unless he accepts it fully. But where a gift consists of separate and independent conveyances, then the donee can accept some and refuse others. A donee who is not legally capable of entering into a contract is not bound by any contractual liabilities that are included with the gift. But as soon as they gain competence and hold the property conveyed with knowledge about its burdens, they are bound by them.

Step-by-Step Guide to Registering a Gift Deed in India

For legal protection to the donee and donor, Gift Deed registration is compulsory. Please see below step-by-step elaborate procedure:

1. Drafting of Gift Deed

Obtain Legal Advice: Obtaining advice from an attorney will ensure that the gift deed is compliant with all the requirements of law.

Include Compulsory Clauses: The deed should express clearly:

Full names and addresses of the donor and donee.

An authentic description of the property being donated, i.e., place, nature, and boundaries.

Date of signing.

A statement of donation from the donor confirming the gift to be voluntary.

A donee statement of acceptance of the gift.

2. Take Documents if Necessary

Documents relating to title of property: Original sale documents, tax payments on properties receipt, and clearances.

Proof of Identity: The two individuals will need to provide identification in the form of Aadhaar card, driving license, or passports.

Other Documents: NOCs are required in some states under local governments.

3. Pay Registration Fees and Stamp Duty

Compute Stamp Duty: The fee is state-dependent and based on the property value. Recheck with the Sub-Registrar's office or online calculator.

Make Payment: Remit the stamp duty and registration fees to the treasury as instructed.

4. File Documents with Sub-Registrar

Visit the Sub-Registrar's Office: This should be within the jurisdiction of the property.

Submit Required Documents: Original gift deed, identification proofs, property documents, and witness details are to be submitted.

Verification Process: The Sub-Registrar will verify the documents and ensure that they are in accordance with the required norms.

5. Registration and Stamping

Official Registration: On verification, the Sub-Registrar officially registers the gift deed.Stamping: The deed will be stamped as evidence of payment of the stamp duty.

6. Obtain the Registered Gift Deed

Get a Certified Copy: The Gift Deed is furnished in the form of a certified copy at the time of registration, which acts as evidence of the transfer of ownership.

7. Update Property Records (Mutation Process)

Notify Local Authorities: The change of ownership should be notified to the municipal corporation or revenue department to enter the new owner in property records.

Can a Gift Be Cancelled?

A gift can be cancelled under the following conditions, according to Section 126 of the Transfer of Property Act, 1882:

If both the parties have previously agreed that the gift is revocable on the occurrence of a specific event (which should not be under the control of the donor).

If the gift would have been cancelled by the Add after law of Contract-

except want or failure of consideration

If it was a gift by fraud, coercion, or misrepresentation.

However, in general parlance, once a gift deed is registered, revocation is generally not possible unless a specific "revocation clause" is included in the deed itself. Therefore, it is highly recommended to have such a clause to prevent any potential complications in the future.

Conclusion

Registration of Gift deed is a crucial step towards legal surety and protecting the rights of both parties. We simplify it at You Are Ensured with law expert guidance, simple document submission, and quick registration services. Through our portal, you can draft and register your Gift Deed smoothly. Get a hassle-free smooth and legally valid property transfer today!