What is a gift deed? Some simple points for easy understanding
Gift deed: Want to give your loved ones a special gift? A gift deed in India can make sure the transfer is smooth and secure, whether it’s a family heirloom or a valuable property. Here’s how you can make use of gift deeds to transfer your wealth:
What’s a gift deed?
A gift deed is a document that officially records the transfer of an asset (like jewellery, a car, or even land) from you (the donor) to the recipient (the donee). It serves as concrete proof of your generous intentions and prevents potential misunderstandings down the line.
Why use a gift deed?
While not mandatory for all gifts, a gift deed offers several advantages:
Clarity and security: The document removes any uncertainty about the transfer by clearly stating the gift details and the recipient’s acceptance, minimising the chance of future family disagreements.
Legally binding: For land or buildings, a gift deed is necessary for legal recognition. Registration under the Transfer of Property Act is required, along with paying stamp duty based on the property’s value.
Making a gift deed
When making a gift deed, it is important to reflect the donor’s voluntary intent and financial stability. This ensures that the gift is given freely, without any pressure or coercion.
Accepting the gift deed
Once the gift deed is prepared, the recipient’s acceptance should be recorded by their signature on the document. It is important that this acceptance takes place while the donor is alive to make the gift valid.
Registering the deed
For immovable property, registration under the Transfer of Property Act is necessary. Paying the appropriate stamp duty, based on the property’s value, is essential to legalise the transfer.
Gift deeds: Key points to remember
Once gifted, it’s done: Generally, gifts cannot be revoked after they’re given. The deed solidifies this finality.
Tax implications: Gifts between close relatives, as defined by the Income Tax Act, 1961, may be exempt from taxes for the recipient. However, it’s always recommended to consult a tax advisor for specific guidance.
With inputs from Centre for Investment Education and Learning content which appeared in Economic Times
For more news like this visit TOI. Get all the Latest News, City News, India News, Business News, and Sports News. For Entertainment News, TV News, and Lifestyle Tips visit Etimes
News Related-
Anurag Kashyap unveils teaser of ‘Kastoori’
-
Shehar Lakhot: Meet The Intriguing Characters Of The Upcoming Noir Crime Drama
-
Watch: 'My name is VVS Laxman...': When Ishan Kishan gave wrong answers to right questions
-
Tennis-Sabalenka, Rybakina to open new season in Brisbane
-
Sikandar Raza Makes History For Zimbabwe With Hattrick A Day After Punjab Kings Retain Him- WATCH
-
Delayed Barapullah work yet to begin despite land transfer
-
Army called in to help in tunnel rescue operation
-
FIR against Redbird aviation school for non-cooperation, obstructing DGCA officials in probe
-
IPL 2024 Auction: Why Gujarat Titans allowed Hardik Pandya to join Mumbai Indians? GT explain
-
From puff sleeves to sustainable designs: Top 5 bridal fashion trends redefining elegance and style for brides-to-be
-
The Judge behind China's financial reckoning
-
Arshdeep Singh & Axar Patel Out, Avesh Khan & Washington Sundar IN? India's Likely Playing XI For 3rd T20I
-
Horoscope Today, November 28, 2023: Check here Astrological prediction for all zodiac signs
-
'Gurdwaras are...': US Sikh body on Indian envoy's heckling by Khalistani backers