What is a gift deed? Some simple points for easy understanding | Business

Apr16,2024



Gift Deed: Do you want to give a special gift to your loved ones? A deed of gift In India it can be ensured that the transfer is smooth and secure, whether it is a family heirloom or a valuable asset. Here's how you can use a gift deed to transfer your property:

What is gift deed?

A gift deed is a document that officially records the transfer of an asset (such as jewellery, a car, or even land) from you (the giver) to the recipient (the donee). This serves as concrete evidence of your generous intentions and prevents potential misunderstandings.

Why use gift deed?

Although not mandatory for all gifts, a gift deed offers several benefits:
Clarity and Security: The document removes any uncertainty about the transfer by clearly stating the gift details and the recipient's acceptance, reducing the possibility of future family disagreements.
legally binding: Gift deed is necessary for legal recognition of land or building. registration under Transfer of Property Act Stamp duty is required to be paid based on the value of the property.
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making gift deed

While making a gift deed, it is important to reflect the voluntary intention and financial stability of the donor. This ensures that the gift is given freely without any coercion or coercion.

accepting gift deed

Once the gift deed is prepared, the acceptance of the recipient should be recorded by his signature on the document. For the gift to be valid it is important that this acceptance takes place while the donor is alive.

register the deed

Registration under the Transfer of Property Act is required for immovable property. To make the transfer valid it is necessary to pay appropriate stamp duty depending on the value of the property.

Gift Deed: Key Points to Remember

Once the gift is delivered, it's done: Generally, gifts cannot be taken back once they are given. Work solidifies this finality.
tax implications, Gifts between close relatives, as defined income tax act, 1961, may be exempt from taxes for the recipient. However, it is always recommended to consult a tax advisor for specific guidance.
with input from Investment Education Center And learning materials published in Economic Times



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