{"id":17111,"date":"2020-09-30T14:59:13","date_gmt":"2020-09-30T09:29:13","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=17111"},"modified":"2020-10-01T11:43:53","modified_gmt":"2020-10-01T06:13:53","slug":"know-when-making-a-gift-deed-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/know-when-making-a-gift-deed-in-india\/","title":{"rendered":"What you must know when making a Gift Deed? Let\u2019s Figure it out!"},"content":{"rendered":"\n<p class=\"has-drop-cap\">A gift deed is a form of legal documentation that is used to validate the process of the property\u2019s transfer. Unlike a sale agreement, the  gift deed in India is executed without sale consideration. In legal terms, the gift deed typically comes into the existence when a donor decided to transfer his\/her assets to the donee in the form of a gift. In simple words, a gift deed acts as legal proof for the act of gifting. Since executing a gift is purely a legal process, there are few things you must know while making a gift deed. In this blog, you will get familiar with the concept of Gift deed including the <a href=\"https:\/\/corpbiz.io\/gift-deed-registration\"><strong>gift deed registration<\/strong><\/a>. <\/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\/know-when-making-a-gift-deed-in-india\/#Registering_a_Gift_deed_in_India\" >Registering a Gift deed in India<\/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\/know-when-making-a-gift-deed-in-india\/#Process_of_making_a_Gift_Deed_in_India\" >Process of making a Gift Deed in India<\/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\/know-when-making-a-gift-deed-in-india\/#Gift_Deed_Clauses\" >Gift Deed Clauses&nbsp;<\/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\/know-when-making-a-gift-deed-in-india\/#State-wise_Gift_Deed_Registration_Charges\" >State-wise Gift Deed Registration Charges<\/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\/know-when-making-a-gift-deed-in-india\/#Involvement_of_the_Minor_in_a_Gift_Deed\" >Involvement of the Minor in a Gift\nDeed&nbsp;<\/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\/know-when-making-a-gift-deed-in-india\/#Documents_required_while_drafting_a_Gift_Deed\" >Documents required while drafting a Gift\nDeed&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/know-when-making-a-gift-deed-in-india\/#Revocation_of_the_Gift_Deed\" >Revocation of the Gift Deed&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/know-when-making-a-gift-deed-in-india\/#_Conclusion\" >&nbsp;Conclusion&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Registering_a_Gift_deed_in_India\"><\/span>Registering a Gift deed in India <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A typical gift deed outlines a legal declaration to be filed and signed by the donor in the presence of the sub-registrar. The form is also required to be signed by the donee as well as witnesses to validate the transfer, particularly in case of immovable property. Once the  gift deed in India is executed, the donor is not eligible to revoke the deed at the later stage. However, there is an exception to that- if the donor includes the revocation clause in the contract then he\/she can revoke the deed at any stage during the lifetime. It\u2019s a good idea to execute a gift deed if you want to avert future complications over the transferred asset. This is something you must consider in the first place while making a gift deed.&nbsp; <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Process_of_making_a_Gift_Deed_in_India\"><\/span>Process of making a Gift Deed in India <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"743\" height=\"340\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/09\/image-118.png\" alt=\"Process of making a Gift Deed \" class=\"wp-image-17112\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/09\/image-118.png 743w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/09\/image-118-300x137.png 300w\" sizes=\"(max-width: 743px) 100vw, 743px\" \/><\/figure><\/div>\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\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Gift_Deed_Clauses\"><\/span>Gift Deed Clauses&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The following are the clauses which are enclosed in a typical gift deed in India<\/em><\/strong> <em><strong>:-<\/strong><\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Consideration Clause<\/h3>\n\n\n\n<p>A gift deed is\nexecuted purely &#8211; voluntarily and without any consideration.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Revocation Clause&nbsp;<\/h3>\n\n\n\n<p>It allows the donor to\nrevoke the deed at the later stage if any complications arise.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Free Will&nbsp;<\/h3>\n\n\n\n<p>If the transfer of the\nproperty is done in the presence of the coercion or fear, then the gift deed shall\nbe deemed legally invalid.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Possession of Property<\/h3>\n\n\n\n<p>This clause states\nthat the presence of the real owner of the property is a must for drafting a\ngift deed.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">About Donor and done<\/h3>\n\n\n\n<p>Gift deed shall\nmanifest the relationship between the recipient and the donor as the estimation\nof the stamp duty depends on that.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Rights and Liabilities<\/h3>\n\n\n\n<p>The clause indicates\nthe right of the donor and donee.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Information about property<\/h3>\n\n\n\n<p>Indicates the\nestimated value of the property along with its address<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Gift deed Delivery<\/h3>\n\n\n\n<p>Shows the delivery\ndate of the property<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"State-wise_Gift_Deed_Registration_Charges\"><\/span>State-wise Gift Deed Registration Charges<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong><em>State\/UT<\/em><\/strong>\n  <\/td><td>\n  <strong><em>Gift Deed Registration Charges<\/em><\/strong>\n  <\/td><\/tr><tr><td>\n  Delhi\n  <\/td><td>\n  6% for women &amp; 4%\n  for men\n  <\/td><\/tr><tr><td>\n  Maharashtra\n  <\/td><td>\n  Stamp duty = Rs. 200\n  Registration charges= Rs 200, for gifting the residential or agricultural\n  land to one\u2019s relative after their demise.\n  <\/td><\/tr><tr><td>\n  West Bengal\n  <\/td><td>\n  For\n  transferring property to a non-family member:<br>\n  5% of the property\u2019s value in panchayat areas, and 6% of value in municipal\n  areasFor\n  transferring property to a family member:<br>\n  0.5% of the property\u2019s market value.\n  \n  <\/td><\/tr><tr><td>\n  Uttar Pradesh\n  <\/td><td>\n  2% of the property\u2019s\n  market value\n  <\/td><\/tr><tr><td>\n  Karnataka\n  <\/td><td>\n  For\n  transferring property to non-family member:<br>\n  5% of the property\u2019s value + surcharge + cess and registration fee (1%)For\n  transferring property to a family member:<br>\n  Rs.1000 + registration fee of Rs.500 +surcharge + cess\n  \n  <\/td><\/tr><tr><td>\n  Andhra Pradesh\n  <\/td><td>\n  Stamp\n  Duty:&nbsp;2% of the property\u2019s market value Registration\n  Charges:&nbsp;0.5% property\u2019s market value\n  \n  <\/td><\/tr><tr><td>\n  Tamilnadu\n  <\/td><td>\n  Stamp\n  Duty:&nbsp;7% of the property\u2019s market valueRegistration\n  Fee:&nbsp;1% property\u2019s market value\n  \n  <\/td><\/tr><tr><td>\n  Madhya Pradesh\n  <\/td><td>\n  For\n  transferring property to a non-family member:<br>\n  5% of the property\u2019s market value. For\n  transferring property to a family member:<br>\n  2.5% of the property\u2019s market value. \n  \n  <\/td><\/tr><tr><td>\n  Telangana\n  <\/td><td>\n  Stamp\n  Duty:&nbsp;5% of the property\u2019s market value. Registration\n  Fee:&nbsp;0.5% of the property\u2019s market value. \n  \n  <\/td><\/tr><tr><td>\n  Rajasthan\n  <\/td><td>\n  Stamp\n  Duty:&nbsp;6% of property\u2019s market value. Registration\n  Fee:&nbsp;1% of the property\u2019s market value. \n  \n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Involvement_of_the_Minor_in_a_Gift_Deed\"><\/span>Involvement of the Minor in a Gift\nDeed&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Transferring an asset\nthrough a gift deed comes with certain exceptions, particularly when it comes\nto the age of the donor. As per bylaws, the involvement of the minor is\nstrictly prohibited for executing a gift deed.&nbsp;<\/p>\n\n\n\n<p>On the contrary, if\nthe recipient is a minor, a natural guardian can act as a donee on his\/her\nbehalf. The guardian would keep aforesaid under their possession until the\nminor attains the permissible age as per the provision. So be cautious with the\nage factor while making a gift deed.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_required_while_drafting_a_Gift_Deed\"><\/span>Documents required while drafting a Gift\nDeed&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Drafting the right set\nof documents is crucial while making a gift deed. The following list manifests\nthe required documents that an applicant needs to at the sub-registrar\noffice.&nbsp;&nbsp;<\/p>\n\n\n\n<ul><li><em><strong>PAN card<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Payment_card_number\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>&nbsp;<\/li><li>Driving license, Voter ID card, password as an identification proof.&nbsp;<\/li><li>Aadhaar card&nbsp;<\/li><li>Proof regarding the property\u2019s ownership such as sale deed or related documents.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Revocation_of_the_Gift_Deed\"><\/span>Revocation of the Gift Deed&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Section 126 illustrates several provisions for the cancellation of the gift deed which are as follow:&nbsp;<\/em><\/strong><\/p>\n\n\n\n<ul><li>The donor\nand the recipient must draw an agreement through mutual consent for revoking\nthe gift deed under certain criteria.&nbsp;<\/li><li>The\ncancellation condition must be made clear to the recipient of the property.<\/li><li>The\nrevocation is only possible if the clause for revocation is mentioned in the\ndeed.&nbsp;<\/li><li>A bonafide\ngift cannot be revoked unilaterally. One has to engage with legal proceedings\nfor the cancellation of the bonafide deed.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"_Conclusion\"><\/span>&nbsp;Conclusion&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A gift deed is an effective legal instrument for the seamless transfer of property in India if made voluntarily. It is free from tax liabilities up to a certain limit. Also, it free from sale as well as central taxes. Connect with the proficient team of <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a> to get seamless and quality assistance different registration processes including the gift deed in India.<\/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\/document-needed-for-making-a-gift-deed-a-complete-overview\/\">Document Needed for Making a Gift Deed: A Complete Overview<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A gift deed is a form of legal documentation that is used to validate the process of the property\u2019s transfer. Unlike a sale agreement, the gift deed in India is executed without sale consideration. In legal terms, the gift deed typically comes into the existence when a donor decided to transfer his\/her assets to the [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":17126,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1011],"tags":[1055],"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":7558,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17111"}],"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=17111"}],"version-history":[{"count":13,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17111\/revisions"}],"predecessor-version":[{"id":17155,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17111\/revisions\/17155"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/17126"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=17111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=17111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=17111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}