What Is A Gift Deed?

As per section 122 of the Transfer of Property Act 1882, one can transfer immovable property through a gift deed. A gift deed comprises all particulars of the property that is being transferred. A gift deed permits transferred to transfer ownership without any exchange of money. Registering a gift deed is compulsory as per section 17 of the Registration Act 1908, and. If transferred don’t do this, the transfer will be invalid as per section 123 of the Transfer of Property Act.

Once a gift deed is registered in the name of the receiver, then one can apply for mutation of the property which will allow utility connections. A registered gift deed also allows the receiver of the property to further transfer the same if he or she wishes to.

Advantages Of Gift Deed

  • A Gift Deed is one of the simplest ways to transfer property within the family members.
  • It does not involve any major tax implications.
  • Transfer of property happens instantly on executing the gift deed and process related to it.
  • By specifying the name on the deed, you can specify who you can leave your property to.
  • It lets you shield your property in case of any dispute arise between the parties.

Is Stamp Duty Levied?

Both Stamp duty and the registration fee is levied and paid to register a gift deed. In some states, stamp duty rates for transfer of property by way of gift is the same as that for sale or conveyance deed.

Can a Gift Deed be Challenged?

The gift deed can be questioned certainly in the court of law by filing a suit for such. However, it will be challenged only if one is able to prove that the execution of the deed was not as per the wish of the transferor or was performed and affected by misrepresentation, fraud etc.

Time Required?

It just takes 2 to 3 working days to draft and deliver the gift deed. Additional days if any medication required there after.

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