Gift Deed Registration
A gift deed is a local document which elucidates the voluntary transfer of an immovable property from a donor (property) to donee (gift receiver) without any monetary exchange. The gift deed is offered in return of love and affection. The donor cannot use gift deed for illegal gains or tax evasion. A gift deed is an official statement which documents the transfer of a property as a gift to another.
The acceptance of the gift must be made within the lifetime of the donor and should be registered under Section 122 of the Property Transfer Act, 1882 with the sub-registrar. In case the donee dies before acceptance, then the gift will become void and invalid. In order to offer the gift deed, the donor should be competent and should not be a minor. On the contrary, a donee can be a minor with a guardian who will act as a nominee and will share onus of the property until the donee becomes an adult.
For gifting the immovable property, it is required to be registered. An unregistered immovable property cannot be gifted because it is considered bad in law and cannot be passed to the donee. The documents are required to be stamped with appropriate non-judicial stamp and should be registered under the India Registration Act. It is also required to be attested by two witnesses.
- A registration fee of Rs. 101 and stamp duty @ 8% has to be paid on the gift deed.
- The property being gifted has to be valued by an approved value.