Would you want to offer a unique present to your loved ones? A gift deed in India can provide a safe and easy transfer of valuable property, such as family heirlooms. The following is how you can transfer your fortune via gift deeds:
What’s A Gift Deed?
A formal record of the transfer of an item (such as jewellery, a vehicle, or even property) from you, the donor, to the receiver (the donee) is a gift deed. It avoids future misunderstandings and provides verifiable evidence of your intentions.
Why Use A Gift Deed?
A gift deed is not necessary for every present, but it has many benefits:
- Clarity and security: By outlining the gift’s specifics and the recipient’s acceptance in full, the document minimizes any doubt over the transfer and lowers the possibility of future family disputes.
- Legally binding: For a gift deed to be recognized legally, it must relate to property or structures. In addition to paying stamp duty determined by the value of the property, registration under the Transfer of Property Act is necessary.
Making A Gift Deed
It is crucial to include the donor’s financial soundness and voluntary purpose in the donation deed. This guarantees that the donation is offered voluntarily and free from force or pressure.
Accepting The Gift Deed
As soon as the gift deed is ready, the receiver needs to sign it to confirm that they have accepted it. For the donation to be considered legitimate, this acceptance must occur while the donor is still living.
Registering The Gift Deed
Registration under the Transfer of Property Act is required for immovable property. To legalize the transfer, the relevant stamp duty must be paid, depending on the value of the property.
Gift Deeds: Key Points To Remember
- After Given, It’s Finished: Gifts are usually non-refundable after they are given. The action confirms this finality.
- Tax Ramifications: According to the Income Tax Act of 1961, gifts given between close relatives may be free from the recipient’s taxes. For more detailed advice, it is always advised to speak with a tax adviser.
