{"id":16786,"date":"2020-09-23T12:27:36","date_gmt":"2020-09-23T06:57:36","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=16786"},"modified":"2020-09-23T12:27:38","modified_gmt":"2020-09-23T06:57:38","slug":"document-needed-for-making-a-gift-deed-a-complete-overview","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/document-needed-for-making-a-gift-deed-a-complete-overview\/","title":{"rendered":"Document Needed for Making a Gift Deed: A Complete Overview"},"content":{"rendered":"\n<p class=\"has-drop-cap\">A gift deed is\nreferred to as a statutory document that encloses the act of transferring the\nproperty to the beneficiary from an owner in the form of a gift. The gift deed\nis executed between the donor (owner of the property) and the donee\n(beneficiary).<\/p>\n\n\n\n<p>Precisely, it&#8217;s not important to execute a gift deed for transferring assets in the form gift; it does act a valid proof that might handy in the future to overcome the legal dispute. A typical gift deed encloses the declaration that property, be it movable or immovable, has been given to the beneficiary in the form of a gift. In this article, we will look into the core aspect of this topic and also explore the document needed for making a gift deed. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/document-needed-for-making-a-gift-deed-a-complete-overview\/#Who_can_be_a_donordonee_in_a_Gift_Deed\" >Who can be a donor\/donee in a Gift Deed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/document-needed-for-making-a-gift-deed-a-complete-overview\/#Document_Needed_for_Making_a_Gift_Deed\" >Document Needed for Making a Gift Deed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/document-needed-for-making-a-gift-deed-a-complete-overview\/#The_Registration_Process_of_the_Gift_Deed\" >The Registration\nProcess of the Gift Deed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/document-needed-for-making-a-gift-deed-a-complete-overview\/#Essential_Points_Regarding_Gift_Deed\" >Essential Points\nRegarding Gift Deed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/document-needed-for-making-a-gift-deed-a-complete-overview\/#Key_takeaways\" >Key\ntakeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/document-needed-for-making-a-gift-deed-a-complete-overview\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_can_be_a_donordonee_in_a_Gift_Deed\"><\/span>Who can be a donor\/donee in a Gift Deed?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A donor is a person\nwho transfers of immovable property. Any person with the best of health and\nmind can enter into an agreement can be a donor. As per bylaws, a\nminor is not legally permitted to enter into a contract. <\/p>\n\n\n\n<p>A donee is an individual who receives a gift from the donor. A minor can be donee if the gift is accepted by the parent\/Legal guardian on behalf of the donee. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/list-of-advantages-of-gift-deed-registration-that-you-must-know\/\">List of Advantages of Gift Deed Registration That You Must Know<\/a><\/mark><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"704\" height=\"440\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/09\/image-92.png\" alt=\"donor\/donee in a Gift Deed\" class=\"wp-image-16787\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/09\/image-92.png 704w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/09\/image-92-300x188.png 300w\" sizes=\"(max-width: 704px) 100vw, 704px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Document_Needed_for_Making_a_Gift_Deed\"><\/span>Document Needed for Making a Gift Deed<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The applicant needs to fulfill certain legal formalities to complete the registration process, such as it must possess the signature of the donor and two witnesses. The presence of the donor and receiver is imperative in the registrar&#8217;s office at the time of registration. Also, the stamp duty and the registration payment must be made to register a Gift Deed. The following are the documents needed for <a href=\"https:\/\/corpbiz.io\/gift-deed-registration\"><strong>gift deed registration<\/strong><\/a>.<\/p>\n\n\n\n<ul><li>PAN card<\/li><li>Identification\nproof driver&#8217;s license, passport, etc.<\/li><li>Aadhaar\ncard<\/li><li>Sale deed\nstating the detail regarding the ownership of the donor over the property. <\/li><\/ul>\n\n\n\n<p>So these are the\ndocument needed for making a gift deed. However, the list could be exhaustive,\nas you may have to present different documents depending on the scenarios.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Registration_Process_of_the_Gift_Deed\"><\/span>The Registration\nProcess of the Gift Deed<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>The following section unfolds the steps required for registering a gift deed. <\/strong><\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Drafting a gift deed<\/h3>\n\n\n\n<p>As gifting is\nconducted through voluntary action, the gift must contain the intent behind the\ngifting process, and it should clearly indicate that it has been executed\nwithout any force or coercion. It&#8217;s important to note that the gift deed should\ndeclare that the donor is not bankrupt.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Acceptance of gift<\/h3>\n\n\n\n<p>In the next step, the\ndonee would accept the gift by the donee. The act of receiving the gift will be\nrecorded in the gift deed along with the donee&#8217;s signature. Another vital fact\nto this step is that the gifting process cannot happen in the absence of the\ndonor i.e. the donor&#8217;s presence is extremely imperative to validate the\nexistence of the gift deed. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Registration of Gift Deed<\/h3>\n\n\n\n<p>Gifts that\nconsolidate the immovable property must be registered to the Transfer of\nProperty Act. In immovable property, the donor cannot transfer the title to the\ndonee unless the gift deed is registered. As far as the stamp duty is\nconcerned, it is payable, depending on the value of the gift. The valuation\nexperts are the one who is responsible for the exact valuation of the immovable\nproperty. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Essential_Points_Regarding_Gift_Deed\"><\/span>Essential Points\nRegarding Gift Deed <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Depending\non the state&#8217;s statuary law and how the deed is prepared, the stamp duty might\nbe deducted if the owner is transferring the property to the trust. However, if\nthe donor has decided to gift the asset to NGO, then he\/she doesn&#8217;t have to pay\nthe stamp duty. It&#8217;s worth noting that all the NGOs are allowed to accept the\ngift of immovable assets. <\/li><\/ul>\n\n\n\n<ul><li>In spite\nof gifting your properties, you might not wish to parts way with it at any\ninstance in your lifetime. To ensure this situation, the transfer must take\nplace via a will and not a gift deed. While creating the will, you have the\nchance to make the changes in it. That sort of liberty is not available in a\ngift deed. <\/li><\/ul>\n\n\n\n<ul><li>As per\nsection 126 of the Transfer of Property Act, 1982, the revocation of a gift\ndeed is impossible until and unless the donor specifies the same in the\nregistered contract. <\/li><\/ul>\n\n\n\n<ul><li>If you\nare transferring the asset (estimated value of over Rs 50,000) to a\nnon-relative, the donee will have to address the tax liabilities during that\nfinancial year.<\/li><\/ul>\n\n\n\n<ul><li>The donee\nand the donor will be not liable to pay taxes on the gift deed that has been\nexecuted. However, the donor still has to pay stamp duty on the transaction to\nlegalize the gifting process. <\/li><\/ul>\n\n\n\n<ul><li>As per\nthe property transfer law, after a property transfer upon a new person via the\ngifting process, the recipient\/donee will be liable to pay the pending dues. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_takeaways\"><\/span>Key\ntakeaways <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The entry of the minor in the gift deed is strictly prohibited as per the bylaws. However, it can be done if the gift is accepted by the parent\/<strong><em>Legal guardian<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Legal_guardian\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> on behalf of the donee. <\/li><li>Once registered, the gift deed cannot be canceled in any situation whatsoever. <\/li><li>A gift made to relatives is exempted from the income tax in the hand of the donee. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Executing a gift deed is probably the best proposition for someone looking to save taxes on the property&#8217;s transfer. It also helps the individual to legalize the whole process of property transfers. Gift deed acts as proof in the court proceeding, eventually helping concerned parties to resolve the legal disputes. In the term of law, the gift deed is a legal instrument that can be used to transfer the movable and immovable asset of an individual to the donee. All in all, gift deed offers tons of legal benefits over a will when it comes to tax exemptions and seamless transfer of property. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/procedure-for-gift-deed-registration-a-step-by-step-guide\/\">Procedure for Gift deed registration: A Step By Step Guide<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A gift deed is referred to as a statutory document that encloses the act of transferring the property to the beneficiary from an owner in the form of a gift. The gift deed is executed between the donor (owner of the property) and the donee (beneficiary). Precisely, it&#8217;s not important to execute a gift deed [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":16802,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1011],"tags":[1027],"acf":{"service_id":"284"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":7757,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/16786"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=16786"}],"version-history":[{"count":3,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/16786\/revisions"}],"predecessor-version":[{"id":16790,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/16786\/revisions\/16790"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/16802"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=16786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=16786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=16786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}