In this article, we delve into the intricacies involved in preparing a gift deed for immovable property, and provide valuable insights into how to write a gift deed.
Have you ever thought about making a gift deeds? If yes, you must have several considerations before implementing the same. But what is a gift deed in the first place? A gift deed is a legally binding document that helps the property owner voluntarily hand over his property to any third party. It is not always true that the third party member remains a relative or a legal inheritor. In this article, we will provide a step-by-step guide on how to write a gift deed in India, including the necessary clauses and legal considerations.
Gift Deed – Legal Intricacies
A gift deed is a legally binding document. It considers the legal intricacies of a gift of property to anyone without allowing any dispute. A gift deed is made in the successor’s name and has several monetary implications, for that matter of fact. The legally binding document pertaining to the gift deed declares the ownership transfer with the owner’s consent, and this remains a permanent procedure.
Gift Deed: The Definition
- While going through the theories of law, it is understood that,
- A gift deed is an agreement that remains to be legally binding.
- Any owner can prepare a gift deed, for that matter of fact, provided the absolute ownership of the property is justified.
- Any property can be gifted, be it movable or immovable.
- A gift deed can be made on inheritance claims.
- A gift deed needs to be registered at the end of the day.
- A gift deed is not a will and should not be used either.
- Execution of gift deeds does not require legal intervention.
- Transfer of gift deed can be done across generations.
- Making a gift deed is always advisable if you need to save time.
How to Write a Gift Deed?
To successfully write a gift deed, it’s crucial to understand that it’s a legal document that requires careful attention to several crucial aspects. Here are some essential considerations to keep in mind when drafting a gift deed.
- Place of gift deed preparation
- Date of Gift deed preparation
- Relevant details related to the property owner who is liable to work on the gift deed
- Relevant details of the person who is being gifted with the property
- Details of the property being donated
- Address of the property owner in which his Aadhar is registered
- Complete details of the property under consideration that is being gifted within a given context
- Signature of witnesses who can endorse the deed for gifting the property to the concerned person
What Are the Major Clauses that Must be Included in a Gift Deed?
Every legal deed pertaining to gifting a property should consider certain clauses. The following aspects should be clearly mentioned in the given context:
- There should not be any coercion or force applied to the owner, and the decision should be taken by the sole property owner in preparing a gift deed;
- Nominees of the primary owner of the property will have no particular say while the preparation of a gift deed is being put into place;.
- A property description in detail must be included while making the gift deed under consideration;
- It has to be ensured that the preparation of the gift deed is only and only made out of love and trust;
- Only the owner should be majorly responsible in case any dispute arises after the property is transferred in the receiver’s name;
- A gift deed should clearly explain the details of the property. At the same time, it should acknowledge the right to property especially considering the owner if it is an ancestral property;
- A property delivery clause needs to be included. It might so happen that the owner can transfer the stake holding to the receiver only after his death;
- Any kind of liabilities associated with the owner as well as the property itself should be clearly declared;
- In case there are tenants, it needs to be declared that a portion of the given property is currently occupied;
- If the property is transferred, a clause should take into consideration that, the fate of the tenants after that;
- All the legal nominees of the property should have a copy of the gift deed.
Is Income Tax Applicable so Far as the Gift Deed is Concerned?
Income tax is readily applicable as per the Gift Tax Act of 1958, which was reintroduced in 2004. Therefore, in case of a gift deed being prepared for a house, an apartment, or an immovable property, for that matter of fact.
Who Can Make a Gift Deeds?
Any property owner can make a gift deed. However, a gift deed needs to be made, while the person is within his consciousness, and should be endorsed by a nodal body like a municipality along with the endorsement of a legal counsel.
Is the Gift Deeds Subjected to Stamp Duty?
Yes, very much. A gift deed remains to be a transfer of assets but is also subject to stamp duty based on the property’s value.
Who Shall Pay the Stamp Duty?
The property’s original owner has to pay an amount of stamp duty if required. At the same time, if the property under consideration has tenants, the total valuation can reduce. A survey should be undertaken in such a case to endorse the proper valuation of the immovable property at a given time.
Can a Gift Deed be Duplicated?
It is one of the most common questions asked by property owners. But, it is important to know that, a gift deed can never be duplicated,
What Should You Do if a Gift Deed is Lost or Misplaced?
If a gift deed is lost or misplaced, you must register a police complaint. An FIR number must be shared with legal personnel to bring out a second copy.
Conclusion
When it comes to transferring property through a gift deed, it’s essential to have a thorough understanding of the involved intricacies and comply with the applicable legal clauses. At Vakilsearch, we offer hassle-free assistance in creating a gift deed. Contact our experts today to learn more about how to write a gift deed.
Read More:
- Is Registration Of Gift Deed Compulsory?
- Who Are Eligible For A Gift Deed In India?
- Can I Revoke a Gift Deed?
