We often give gifts to each other. But when it is the case of any gifting asset like property, it should be legally transferred with a gift deed. Therefore, in this section, we will understand gifting more deeply.
What is a Gift?
- As per Transfer of Property Act, 1882, a gift is considered to be valid only when it is made voluntarily; it is without consideration; there has been an offer by the donor; and the offer has been accepted by the donee, and the donee actually accepts the gift.
- A gift deed must be executed by the donor and the donee. Further, the gift deed must be attested by two attesting witnesses. Stamp duty must be paid on the gift deed and the same must be registered.
- A gift deed is a compulsorily registrable document under the Registration Act, 1908 and will have to be registered with the sub-registrar of assurances. The applicable registration charges will also have to be paid.
Who can give gifts and what can be gifted?
- Generally immovable property is gifted by a legal registered document known as the gift deed which should be legally attested.
- Movable property can be gifted just as immovable property or by delivery. Sometimes gifts can be made even by book entries.
- A person gifting any property should have a valid ownership of the property.