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Gift Deed
A Gift Deed Registration refers to the process of legally formalizing the transfer of ownership of property or assets from a donor (the giver) to a donee (the recipient) without any consideration (i.e., as a gift). This deed is crucial for ensuring the gift transfer is legally recognized and enforceable.
Here’s a general overview of the Gift Deed Registration process:
1. Draft the Gift Deed:
- The gift deed is a written document that outlines the donor's intention to transfer property to the donee voluntarily, without expecting any payment or compensation in return.
- It includes essential details such as:
- Donor and donee’s names, addresses, and relationships.
- Description of the gifted property (e.g., immovable property like land, house, or movable property like jewelry, money, etc.).
- Declaration that the gift is voluntary and without consideration.
- Acceptance of the gift by the donee.
2. Stamp Duty:
- The gift deed must be executed on non-judicial stamp paper of value prescribed by the state government. Stamp duty is typically a percentage of the market value of the property being gifted and varies by jurisdiction.
- In India, the stamp duty for a gift deed may differ based on the nature of the property, and the relationship between the donor and donee (for example, gifts between close relatives may attract lower stamp duty).
3. Witnesses:
- The gift deed should be signed in the presence of at least two witnesses, who will also sign the deed.
4. Acceptance of Gift by Donee:
- The donee must accept the gift in writing for the transfer to be valid. This acceptance can be recorded in the deed itself.
5. Registration of the Gift Deed:
- The gift deed needs to be registered at the local sub-registrar office to be legally valid, especially for the transfer of immovable property.
- The following documents are typically required for registration:
- The executed gift deed.
- Identity proof (Aadhaar, PAN, etc.) of both the donor and donee.
- Proof of address (for both donor and donee).
- Property-related documents (if immovable property is involved).
- Passport-size photographs of the donor and donee.
- Witness signatures and their ID proof.
6. Final Steps:
- The sub-registrar will verify the documents and the gift deed, ensuring that all legal formalities are adhered to.
- Once verified, the deed is registered, and the donee becomes the legal owner of the gifted property.
Key Points to Remember
No Monetary Exchange: A gift deed should involve no consideration or monetary exchange; it’s a voluntary transfer.
Immovable Property: Registration is mandatory if the gift involves immovable property (e.g., land or house).
Relatives: Gifts to relatives (family members) often attract lower or no stamp duty in some states in India.
Once registered, the gift deed is legally binding, and the donee has full ownership rights over the gifted property.