Property Transfer through Gift Deeds in India: Process and Requirements

by Godrej Properties Limited

650

2

Introduction to Property Transfer

Legal Aspects and Requirements:

To comprehend the process, let's explore the essential legal aspects and requirements associated with property transfer through gift deeds.

Voluntary Transfer: The transfer of property through a gift deed must be voluntary, meaning it should be done willingly, without any form of coercion or pressure.

Acceptance: The recipient of the gifted property must willingly accept the gift. Acceptance can be either expressed or implied.

Registered Gift Deed: A gift deed must be executed on non-judicial stamp paper and registered at the office of the Sub-Registrar of Assurances within the jurisdiction where the property is situated. The registration ensures the legality and authenticity of the transfer.

Documented Process: The gift deed should be executed in writing and signed by both the donor (the person giving the gift) and the donee (the person receiving the gift). It should include the details of the property, the names of the parties involved, their relationship, and other necessary information.

Consideration: Unlike other property transactions, gift deeds do not involve monetary consideration. The transfer is based on love, affection, and the desire to gift the property without any financial exchange.

Tax Implications: It is important to note that the transfer of property through a gift deed may have tax implications, including potential tax liabilities for both the donor and the donee. It is advisable to consult with a tax professional to understand the applicable tax laws and implications.

In the process of property transfer through gift deeds, several steps need to be followed. Let's explore them in detail:

1: Drafting the Gift Deed

The first step involves drafting the gift deed, which should be prepared by a legal expert to ensure its validity and compliance with legal requirements. 

2: Execution and Registration

Once the gift deed is drafted, it will be executed by the donee and then doner. Both parties must sign the document in the presence of at least two witnesses. 

3: Transfer of Ownership

Upon registration, the property owner is legally transferred from the donor to the donee. The donee becomes the rightful owner of the gifted property, and the donor no longer retains any ownership rights.

Conclusion:

Property transfer through gift deeds is a legal and viable option for individuals in India who wish to transfer property as a gift. It involves a voluntary transfer of ownership, documented through a registered gift deed. The process requires drafting the deed, executing it, and registering it at the Sub-Registrar of Assurances office. It is crucial to adhere to the legal requirements and consult legal experts to ensure a smooth and lawful property transfer.
 

Frequently Asked Questions:

1.Can a gift deed be revoked?

Ans: No, once a gift deed is executed and registered, it cannot be revoked, unless there are specific circumstances mentioned.

2. Are there any taxes involved in property transfer through gift deeds?

Ans: Yes, there may be tax implications associated with property transfer through gift deeds. 

Previous Post
Next Post