[*The relevant sections and statutes have been mentioned in brackets]
Q. 1 What is a gift?
Ans. Gift is the transfer of certain existing moveable or immoveable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee.
[Section 122 of The Transfer of Property Act, 1882]
Q. 2 Who can make a gift?
Ans. Any person competent to contract, i.e. above the age of 18 and of sound mind can make a gift. The person making the gift is called the donor.
[Section 7 of the Transfer of Property Act, 1882 read with Section 11 of The Indian Contract Act, 1872]
Q. 3 To whom can a gift be made?
Ans. A gift can be made to any person including a minor. Further, a gift is not confined only to family members and relatives.
Q. 4 What is the consideration for making a gift?
Ans. A gift is a transfer without any consideration, i.e. there is no monetary consideration/payment involved. The consideration for making a gift is natural love and affection.
Q. 5 What is the effect of making a gift deed?
Ans. A gift deed effects immediate transfer of the right, title and interest of the donor in favour of the donee.
Q. 6 How is a gift effected?
Ans. For the purpose of making a gift of immoveable property, the transfer must be effected by a registered instrument signed by or on behalf of the donor, and attested by at least two witnesses.
For the purpose of making a gift of moveable property, the transfer may be effected either by a registered instrument signed as aforesaid or by delivery.
[Section 123 of The Transfer of Property Act, 1882]
Q. 7 Is stamp duty payable on a gift deed?
Ans. Yes.
Q. 8 Does a gift deed have to be registered?
Ans. Yes.
[Section 17 of the Registration Act, 1908 and Section 123 of The Transfer of Property Act, 1882]
Q. 9 What laws govern the making of gift deeds?
Ans. The Transfer of Property Act, 1882, The Indian Stamp Act, 1899 (or the applicable state Stamp Act) and the Registration Act, 1908.
Q. 10 Can a gift deed be suspended or revoked?
Ans. In limited situations, yes.
There are two categories of circumstances whereunder a gift maybe revoked:
(a) the happening or non-happening of a condition subsequent to the making of the gift agreed upon by the donor and donee, not depending on the will of the donor alone, and
(b) circumstances whereunder a contract could be rescinded.
A gift is a transfer made voluntarily. If it is proved that the gift was not made voluntarily but under coercion, undue influence, fraud or misrepresentation, it would be voidable at the option of the person whose consent was so obtained.
[Section 126 of The Transfer of Property Act, 1882 read with Sections 19 and 19A of the Indian Contract Act, 1872]
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Really informative, thank you!