What is a gift deed: How to make, register a gift deed

The gift deed should clearly establish the voluntary intent of the donor to gift a specific item or asset to the recipient, and it should also confirm the donor’s financial ability to make the gift. This ensures that the gifting process is conducted freely and without any external pressure or coercion.

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Registration under the Transfer of Property Act is necessary for immovable property. The transfer is legitimized by stamp duty, which is calculated based on the property’s value.

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Once the gift deed has been prepared, the recipient must acknowledge the gift by signing the deed. It is essential for the recipient to accept the gift while the donor is alive in order for the gift to be valid.

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Once a gift deed has been executed and registered, it is typically not possible to revoke it, unless there are legal grounds for doing so. Gifts given to relatives as per the Income Tax Act, 1961, are tax-exempt for the recipient.

(Content courtesy Centre for Investment Education and Learning (CIEL))

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