FAQ / Draft of gift deed, List of Relatives from whom Gift can be received without any tax liability
In Continuance of my article on Taxability of gits from relatives and others , I have prepared FAQ on Gift, ,list of relatives from whom an individual can receive the gifts without any income tax liability and also giving below Draft of gift deed.
1. Frequently Asked Question on Gift deed
What is a gift deed?
A gift deed is an agreement used when a person wishes to gift his asset (property or money) to someone. It is the transfer of certain existing (not future) moveable or immoveable property made voluntarily and without any consideration from one person (called ‘donor’) to another (called ‘donee’).
Who can gift property?
Any valid owner of an existing property can gift property. A minor is incompetent to gift a property though a guardian can accept such a gift on his behalf.
WHAT is the law that governs gifts by one person to another?
Transfer of Property Act, 1882.
What is a Transfer of Property?
Transfer of Property is an act by which a living person conveys property in present or in future to one or more living persons.
What may be transferred?
Property of any kind may be transferred, movable or immovable.
Can there be an oral transfer?
A transfer of property may be made without writing, if it is not expressly required by law. Gifts under the Islamic law may be made orally, as it does not require registration.
What is a gift?
It is a transfer of existing movable or immovable property made voluntarily without consideration by one person to another.
What are the ingredients of gift?
Gift is made by one person called the donor to another called the donee. There should not be any consideration for making a gift. That is, the donor should not receive consideration of any kind while making a gift. The donee should accept the gift in the lifetime of donor.
How gift of an immovable property is made?
Under the Indian Registration Act, any transfer of any immovable property, if the value of the property is more than Rs 100, should be in writing and should be registered.
What are the formalities for registering a gift deed?
The donor on requisite stamp paper should sign the deed. It should be attested by at least two witnesses; the donee should accept the gift.
What is meant by attested?
Attestation of an instrument (document) means that witnesses who sign the instrument should have seen the donor signing the gift deed and they should sign as witnesses in the presence of the donor and in the presence of each other.
Does gift of movable property require registration?
Gift of movable property, may or may not be registered. But delivery of the property and acceptance of it are essential.
How to effect delivery of the property?
The same way as goods is delivered in sale of goods.
What is the effect of a gift comprising both existing and future property?
A gift comprising both existing and future property is void.
Can gift be made to several persons and if one does not accept it, what happens?
A gift to two or more persons (donees) and one of them does not accept it, it is void so far he is concerned.
Can gift once made be suspended or revoked?
The donor and donee may agree that on the happening of a specified event, which does not depend upon the will of the donor, a gift shall be suspended or revoked.
What is a gift deed?
A gift deed is an agreement used when a person wishes to gift his asset (property or money) to someone. It is the transfer of certain existing (not future) moveable or immoveable property made voluntarily and without any consideration from one person (called ‘donor’) to another (called ‘donee’).
Who can gift property?
Any valid owner of an existing property can gift property. A minor is incompetent to gift a property though a guardian can accept such a gift on his behalf.
Why should I require a gift deed ?
As per law, the title in a property cannot be delivered without a written instrument even when its value is small. Therefore, such deed is important to obtain and execute.
What is the procedure to use such a deed?
The draft of such a deed can be directly printed as per instruction kit provided and can be successfully executed by obtaining the signatures of the donor, donee and witnesses. The registration of a gift deed involves additional formalities that have to be taken care of (see below).
What are the essential elements of a Gift Deed?
As per Transfer of Property Act, a gift deed has the following essential elements:
- Transfer of Property
- No consideration (as it is just a gift)
- Acceptance by the donee
Is acceptance by the donee mandatory?
Yes, the acceptance of the gift is mandatory..
What happens if a person dies after making a gift deed without it being formally accepted by the donee?
As per directives by the court, acceptance of a gift is mandated without which such a deed is deemed void. Such acceptance must be made during the lifetime of the donor while he is ‘capable’ of making it.
Is registration of a gift deed mandatory?
As per section 123 of the Transfer of Property Act, the transfer of a gift of immoveable property must be effected by a registered instrument signed by donor and attested by two witnesses. For moveable property such as a car, such a registration is not mandatory and transfer can be achieved by delivery
2. If the individual person receives Gift from following persons are exempt from tax
| Father | Grand Father |
| Mother | Grand Mother |
| Brother | Great Grand Father |
| Sister | Great Grand Mother |
| Son | Daughter’s Husband |
| Daughter | Son’s Wife |
| Grand Son | Wife’s Father |
| Grand Daughter | Wife’s Mother |
| Husband | Husband’s Father |
| Wife | Husband’s Mother |
| Sister’s Husband | Wife’s Grand Father |
| Brother’s Wife | Husband’s Grand Mother |
| Wife’s Brother | Husband’s Grand Father |
| Wife’s Sister | Wife’s Grand Mother |
| Husband’s Brother | Wife’s Great Grand Father |
| Husband’s Sister | Husband’s Great Grand Mother |
| Mother’s Brother | Husband’s Great Grand Father |
| Mother’s Sister | Wife’s Great Grand Mother |
| Mother’s Sister Husband | Brother’s Wife |
| Wife’s brother’s wife | Mother’s Brother’s Wife |
| Father’s Brother | Husband’s Brother’s Wife |
| Father’s Brother’s Wife | |
| Father’s Sister’s Husband | |
| Father’s Sister |
In case of a Hindu undivided family, any member thereof;
3. Deed of Gift(Draft Copy )
1. Date:
2. Place:
3. Parties:
3.1 _____________________, son of ________________, by faith Hindu, by Nationality Indian, by occupation – __________, residing at ____________________.
(Donor, includes successors-in-interest and assigns)
– AND –
3.2 _____________________, son of ________________, by faith Hindu, by Nationality Indian, by occupation – __________, residing at ____________________.
(Donee, includes successors-in-interest and assigns)
[Donor, Donee collectively Parties and individually Party.]
NOW THIS DEED OF GIFT WITNESSES AS FOLLOWS:
4. Subject Matter of Gift:
4.1 Subject Land: ALL THAT piece or parcel of land hereditaments and premises measuring 1 one Cottah 8 eight Chhittacks be the same a little more or less out of the total land of 3 three Cottahs situate and lying at and being Municipal Holding No. _________, Ward No. _____, within the limit of ________ Municipality and having Postal Address _____________ and more fully and particularly described in the Schedule below and demarcated in colour Red on the Plan attached hereto (Subject Land).
4.2 The Structure: One-storied brick built dwelling house, having built up area of ____________ Square feet, be the same a little more or less, standing on the Subject Land (The Structure), described in the Schedule below.
4.3 Other Rights: Easements and all other rights, liberties, privileges and benefits appurtenant to the Subject Land and The Structure and all equipments, installations, fittings, fixtures etc. in or about The Structure.
4.4 Subject Property: The subject matter of the Gift is 4.1, 4.2 and 4.3 above, which are collectively described in the Schedule below and demarcated in colour Red and shown as “Lot – A” on the Plan attached hereto (collectively Subject Property).
5. Background:
5.1 Description of the Title: Chain of title is to be described in detail here.
5.2 Sale to Donor: By a Deed of Sale dated _______, registered in the Office of the Sub-Registrar, ________, in Book No. I, Volume No. ____, Pages __ to ___, Being No. ______ for the year __________ (Said Deed), said _______ (Name of the previous owner) sold the aforesaid plot of land measuring about 5 Decimals or 3 three Cottahs more or less comprised in Dag No. ______ as aforesaid to the Donor hereto.
5.3 Ownership of the Donor: In the circumstances, the Donor hereto became the sole and absolute owner of ALL THAT piece or parcel of land measuring 3 (three) Cottahs be the same a little more or less including the common passage situate and lying at ____________________ and comprised in _____________.
5.4 Construction by the Donor: Subsequently, the Donor constructed a one-storied brick built dwelling house on his acquired property as aforesaid in accordance with the building plan duly sanctioned by the appropriate authority.
5.5 Said Property: Thus the Donor has become the sole and absolute owner in respect of the land and the structure as referred above (Said Property). The Subject Property is the part and portion of the Said Property.
6. Representations and Warranties of the Donor:
6.1 Absolute Ownership: The Donor is the absolute owner of the Subject Property.
6.2 Right, Power and Authority to Sell: The Donor has good right, full power, absolute authority and indefeasible title to gift and/or alienate the Subject Property.
6.3 Free from Encumbrances: The Subject Property is free from all claims, demands, encumbrances, mortgages, charges, liens, attachments, lis pendens, uses, debutters, trusts, prohibitions, Income Tax Attachment, Financial Institution Charges and liabilities whatsoever or howsoever made or suffered by the Donor or any person claiming through the Donor and the title of the Donor to the Subject Property is free, clear and marketable.
6.4 No Prejudicial Act by the Donor: The Donor has not at any time done or executed or knowingly suffered or been party or privy to any act, deed, matter or thing whereby the Subject Property or any part thereof can or may be impeached, encumbered or affected in title.
6.5 No Personal Guarantee: The Subject Property is not affected by or subject to any personal guarantee for securing any financial accommodation.
6.6 No Bar by Court Order: There is no order of Court or any other statutory authority prohibiting the Donor from transferring and/or alienating the Subject Property or any part thereof.
7. Basic Understanding: The Donee is the son of the Donor and the Donor bears natural love and affection for the Donee. The Donor has expressed his desire of gifting the Subject Property in favour of the Donee and the Donee has agreed to accept such gift.
8. Gift:
8.1 Hereby Made: The Donor doth hereby gift to the Donee, absolutely and forever, free from all encumbrances of any and every nature whatsoever, the Subject Property, described in the Schedule below, being:
8.1.1 Subject Land: ALL THAT piece or parcel of land hereditaments and premises measuring 1 one Cottah 8 eight Chhittacks be the same a little more or less, out of the total land of the Donor, i.e. 3 three Cottahs situate and lying at and being Municipal Holding No. __________, Ward No. __, within the limit of _________ Municipality and having Postal Address __________ and more fully and particularly described in the Schedule below and demarcated in colour Red on the Plan attached hereto.
8.1.2 The Structure: One-storied brick built dwelling house, having built up area of _________ Square feet, be the same a little more or less, standing on the Subject Land.
8.1.3 Other Rights: Easements and all other rights, liberties, privileges and benefits appurtenant to the Subject Land and The Structure and all equipments, installations, fittings, fixtures etc. in or about The Structure.
8.2 Consideration: Natural love and affection that the Donor bears for the Donee.
9. Terms of Gift:
9.1 Salient Terms: The gift of the Subject Property being effected by this Deed is:
9.1.1 Gift: A gift within the meaning of the Transfer of Property Act, 1882.
9.1.2 Absolute: Absolute, irreversible and forever.
9.1.3 Free from Encumbrances: Free from all encumbrances of any and every nature whatsoever including but not limited to lis pendens, attachments, liens, charges, mortgages, trusts, debutters, reversionary rights, residuary rights, claims and statutory prohibitions.
9.1.4 Other Rights: Together with Easements and all other rights, liberties, privileges and benefits appurtenant to the Subject Property.
10. Miscellaneous:
10.1 Delivery of Possession: Simultaneously with the execution of these presents khas, vacant and peaceful possession of the Subject Property is handed over by the Donor to the Donee (Possession Date).
10.2 Outgoings: All Municipal and other taxes, penalties, surcharge, outgoings, liabilities and levies on or relating to the Subject Property till the Possession Date, whether as yet demanded or not, shall be borne, paid and discharged by the Donor and thereafter that shall be borne, paid and discharged by the Donee.
10.3 Holding Possession: The Donor hereby covenant that the Donee shall and may, from time to time and at all times hereafter, peacefully and quietly enter into, hold, possess, use and enjoy the Subject Property and every part thereof and receive rents, issues and profits thereof and all other benefits, rights and properties hereby gifted or expressed or intended so to be unto and to the Donee, without any lawful eviction, hindrance, interruption, disturbance, claim or demand whatsoever from or by the Donor or any persons lawfully or equitably claiming any right or estate therein from under or in trust from the Donor.
10.4 Further Acts: The Donor hereby covenants that the Donor or any person claiming under him, shall and will from time to time and at all times hereafter, upon every request and at the cost of the Donee and/or successors-in-interest of the Donee, do and execute or cause to be done and executed all such acts, deeds and things for further or more perfectly assuring the title of the Donee to the Subject Property.
10.5 Production of Said Deed: As referred hereinbefore, the Said Deed and all other title documents in respect of the Said Property shall be lying with the custody of the Donor and unless prevented by fire or other unavoidable accidents from time to time and at all times hereinafter at like request and cost of the Donee, the Donor or his successors-in-interest will produce or cause to be produced the Said Deed and/or the said documents for reasonable requirement as may be required from time to time.
10.6 Assessment of Value for the purpose of Advalorem Stamp Duty: For the computation of stamp duty, the value of the Subject Property is assessed at Rs. ______/- (Rupees ________) only.
11. Interpretation:
11.1 Number: Words denoting the singular number include, where the context permits and requires, the plural number and vice-versa.
11.2 Headings: The headings in this Deed are inserted for convenience only and shall be ignored in construing the provisions of this Deed.
11.3 Definitions: Words and phrases have been defined in the Deed by bold print and by putting them within brackets. Where a word or phrase is defined, other parts of speech or grammatical forms of that word or phrase shall have corresponding meaning.
Schedule above referred to
(Subject Property)
[Subject Matter of Gift]
Detail of the Subject Property with boundary description …………
The Plot is shown on the Plan annexed hereto with the border Red and the Plan is treated as a part of this Deed.
12.Execution and Delivery:
12.1 In Witness Whereof the Donor has executed and delivered this Deed of Gift on the day, month and year mentioned above.
| (DONOR) | |
| I accept the Gift mentioned hereto with pleasure: | |
| (DONEE) | |
| Witnesses:
Signature: _________________________ Name: Father’s/Husband’s Name: Address: |
Signature: ________________________ Name: Father’s/Husband’s Name: Address |
Also Read:
S.56 pertaining to gifts, deemed gifts / under-valuations
‘Corporate Gifts – Beware of Tax Implications’
Taxation of Gift- Under Income Tax
———————–
Author
T.Xavier M.Com,PGIT, (ICWAI- Final)
Email – xavierindia@yahoo.co.in
(Republished With Amendments)
My brother gives me an amount of Rs.200000/- by cheque and Rs.100000/- in cash. Should I need to make any gift deed etc.
I want to gift money by cheque to my wife’s brother. Is a gift deed mandatory even if the payment is by cheque ?
Is there any other formalities reqd to be done by me or my wife’s brother ?
my company owner presenting a property to me can I make it as gift deed ??
because I cannot pay registration fee
My son wants to gift me 50% of his share in the property in which we are living at present. It is a gift from son to mother , what will be the stamp duty and registration charges in Mumbai / Maharashtra. Can he gift his 50% share to his father as I am the 50% first holder of the property in which both my husband and myself are staying
I wish to buy a house property in Haryana from my cousin. My grand father and his grand father were real brothers. They had purchased the property together which they later sub-divided. Today, neither of our grand fathers and nor our fathers are alive.
Is the transfer of house property from my cousin to me exempt from stamp duty or not
can i revoke gift deed registration done by my husband in 2006, without my knowledge to his cousin
and
after my husband’s death in 2007 i came to know about this. i was helpless with two small kids to act then but nw want to revoke
what is the court fees to be paid by the plaintiff(also a legal heir of donar) when filing the case to cancel the gift settlement deed saying fraud and un due influence.
is there any other law under which the legal heirs loose the right to re vocation with in 3 years of registration.
Now Donor is not alive. case for cancellation filed with in 3 yrs. plaintiff not a signatory to the deed so didnt pay court fee based on property value and paid just 75 rs it seems. is this ok or should pay court fees based on any act. property is in chennai. i checked tamil nadu court fees act and section 40 and sub sections. but it dosent talk about people who need not pay so i am not clear in this.
please help
Mother want to gift an immovable property. Can I spent my own money to purchase the stamp paper required for the Gift Deed. OR can I give money to my mother for purchasing the stamp paper.
Is in the above to cases the money consideration is involved ? And the Registered Gift Deed is cancellled ?
is it possible my wife can gift property to my sister
My grandmother after the death of my grandfather gifted me her 1/2 share of the property via deed of gift n registered it. After the deed of gift given to me can she gift her remaining share to any 1 again and if can den how much she can gift.
Peqd notification of Gift Deed published by Maha. Govt.
My daughter is NRI/Canadian. She has sold her property in India and money deposited in their Indian Bank A/c. She wants to give Rs. 30 lakhs to me as Gift to enable me to complete/purchase of Bungalow. Can she give money to father and required to prepare Gift Deed, duly notarized in Canada and register same in India? I have to pay any tax for this money/gift. Thanks.
helli sir,
my wife wish his home means father home tranasfer her name due to some personal reason n my wife have two bro. n two sister n my wife is first. but her father perhaps not agree for this terms.
then how can transfer my wife father home to my wife name under gift deed sec n other . pls guide me…
hello sir,
I bought a property from my grand mother by paying money. We got it registered too.But the third person is saying that even my aunts will have share in that so even we require their signature during registration. As we are already done with registration which form we need to fill take their signatures now(THEY are ready to sign)???
Consider a gift deed of Mother in law TO Daughter in law.
What if the gift deed is only signed by the DONOR,DONEE AND WITNESSES but not REGISTERED?WILL IT BE LIABLE TO ANY LITIGATION BY THE DONOR’S another SON??
It is an IMMOVABLE PROPERTY.
Please reply at the earliest.
Hi,
My father wants to gift me money. Request please send a gift deed format for gift in the form of money and let me know if this deed needs to be registered or not. If to be registered, where do I have to register.
Thanks,
Ramagopal
This is inform you my brother gift deed money 5,00,000/- in cheque by 10 years back full procedure to gift deed registered. but today my brother cancalled the gift deed it possible the gift deed. And said return back the money.
My aunty (Father’s Sister), recently my uncle expired and they have no children and legal heirs. Now she wants to give gift all her property (movable and Immovable)
to me.
Kindly give me a proforma of Hibanama or Gift deed.
And please confirm is the property is tax free or not.
I require a format for the transfer of monetary gift from brother to
sister.Kindly furnish it at the earliest. Thank you.
sir,my husband’s aunt gave him her property by a gift deed and register it by his name now one of his uncle wants share in it & tell that he will go court for it.though aunt always lived with us and my hubby and motherinlaw took care of her when she was sick.now she is no more but uncle says that he is the only brother of her who is alive so he has all rights on her property though he never takecare of her pls suggest me what step we can do now
dear sir my father gifted me a certain amount of money thru cheque. is it taxable and do i have to show this transaction thru a gift deed. if yes than pls send me the proforma of the gift deed and moreover do i have to get this deed registered and if yes than by whom. pls reply at the earliest. thanx.
My mother transfer her property to me.I am married. my brother and sister also but they never look after her. She had an accident last year. One year past I take care her.now she is good in health. what she can. She can will or transfer her property what should do. Please let me know the producer.
I have gifted a land to my brother before 10 years ago. Now can i cancel the said gifted land now?
Dear sir,
my grand mother doesn’t have any child thats why she transfered all the property to her brother son (by means my husband). he is mentally very much disturbed from past 2years even we showed to phychiyatrist but we are not taken any report. after 6months he is start drinking again, so much of money wasting. because of these habbit he lost his coconut land. Lost means he took money and he registered to others. but we don’t know till the registration happening, after the registration only we came to know. those people while registering they did accident to my husband father car, they diverted to that side, they took my husband with another car they did registration. the very next day i came to know. i am having 5years girl baby. apart from that land i doesn’t have any source of income. i am going to work for garments tailering job in bangalore. with this much money how can survival and how can take care my doughter.
if i apply for the court really i will get my land or not. tell me sir. reply me very soon. according to your statement i will fight with them. they should not do for others backwords people like us.
in my village all the lawyers they booked they r not ready to take our case, please help me out.
Sir can this gift ded be sold after some years by donee. What is the time period……
Sir
i want to Gift 50 % of house property to my elder brother
is it done at Registrar office and
my brother have all rights i.e to sell the 50 % portion of house
and the 7/12 will be in name of Brother
I have a joint account with my wife and I have deposited a good portion of my retirement benefits in that account. If I put the amounts as FD’s with her name as first, can the interest be treated as her income and pay the taxes accordingly. Can I say that it is her share of my property and treat it as hers in order to avoid clubbing the income with mine? Is there any documentation needed
Thanks a lot
sir,
we (my self ,my elder brother and my elder sister )are three chidren to our parents ,our parents made one self acquired property one house and the same was divided to us (myself,my brother and my sister) through will,we are all in good terms and healthy relation,now my brother and sister want to gift the property to me which they have got through will made by my parents ,please advise how to take the gift through which way ?
My mother wants to gift property in my wife’s name. Will it attract Gift Tax?
Sir,
We are domiciled & Staying Me Mother Father 2 Brothers in Mumbai, Maharashtra for last 30+ Yrs.
my Mother had bought a Agricultural Land about 34 Decimals in our Village in Bihar in 1986 vide a Sale Deed with Land Value Rs.10000/-
My Mother Intends to Gift this Land to me vide Gift deed.
we are using your Gift Deed Proforma.
I Need to understand
1)which address as place of Stay of DONOR/ DONEE do i need to mention in the Gift Deed. (Mumbai, Maharashtra or Gaya,Bihar)
2)Can i register this Gift Deed here in Mumbai.. mother is old & not in prime of health.
3)Gift Deed Max. Stamp Duty Registration as mentioned is Rs.1000 + Rs.500
would the amount be the same.
4)Gift deed …does it need a Stamp Paper & Stamp Paper & Stamp paper Amount Rs. 100 / Rs. 500 .
Awaiting your Kind Response.
Best Regards
Pravin Goswami
sir as the property ie constructed house as it is in jointly registered by me and my brother but now we want to give a gift to my sister please give the detail’s what are the documents required for registration and what is the stamp value to pay to the govt as property is in bangalore north near peenaya
thanks alot
No response, only another question: Can the interest in real property be gifted even though the property has not yet been probated?
can a gift made by a mother to her daughter of movable property like hospital instruments ( assets ) can i get a similar gift draft for my convinience…
Can i gift property of my elder sister or brother . (Brother is 2 yrs elder than me ).
I received 30 lakhs from my mother by cheque as gift. do i need to make a gift deed. please email me format if gift deed is compulsory
I need to take gift of Rs.25000/- from my mother by Cheque, kindly let me know:
– Whether it should be made on stamp paper or plain paper?
– Value of the Stamp Paper on which the deed to be made?
– The Stamp paper should be purchased in the name of me, or my mother?
– Whether the registration/notray is mandateory?
thanks & regards
I have received an amount of Rs 34 lakhs from my brother as GIFT by way of a cheque which I have deposited into my account with another bank. But no Gift deed has been done till date. Pl provide a draft gift deed and let me know ab out
whether it is taxable ?
If my wife gives a gift deed to me, can i give it back to her as a gift deed again?
I require a format for the transfer of monetary gift from brother to sister. Kindly furnish it at the earliest. Thank you.
I had gifted money to my mother via cheque. Please provide the format for the affadavit I need to have for this Gift.
My wife received a gift from her father(who is living) of a flat.This is still in her father’s name.If she transfers it in her name,does she have to pay stamp duty of 5%(as is prevalent in Delhi)
As transfer of cash does not required any registered gift deed.. So can I receive gift of any amount from my brother and mother?
Do i just need to get these done in writing on plain paper. Please advise.
what if amount is already with me.. do I need to transfer the amount first and than again ask them to credit in my account. please help…
Karta of an HUF Cannot make any gift of HUF property to anyone.
Unexplained sources
Respected members
my question is HUF transfer as loan to karta 300gms by valuing gold at fair market price @ karta is paying lumsum interest @12% or royalty at fair market price
now karta has used gold bar for his propreitory concern & sold jewellery. on demand of huf he ready to give back either cash(equivanant to gold rate ) or pure gold
pls help me tax is applicable Long term short term conversion Capital assets to Stock in trade or Gift tax(indirectly as partition criteria)
Lovely. Thank you CA Hemant
Hi
Can a karta of an HUF gift the HUF property i.e cash to anyone of this relative(grandson) out of all the members of the HUF property like sons, grandsons etc.??
Regards,
Chirag.
Gift to daughter in law will be tax free, but income from the gifted property will be clubbed in the income of donor.
can gift -moveable/non-moveable, be made to grand daughter(daughter of daughter), daughter-in-law(wife of son) and will it be tax free in the hands of donee and donor?
should appreciate your elaboration to understand implications.
B.C.Rokadiya
30.12.12