By Admin 
A gift deed is a legal document used to voluntarily transfer ownership of a property or asset from one person (the donor) to another person (the donee) without any exchange of money or compensation. It is a formal way of gifting something, usually immovable property like land or a house, but it can also include movable assets like cash, jewelry, or shares.
If you’re planning to transfer property, like a house or land, to someone without any financial exchange, a Gift Deed is the legal way to do it. While the idea of gifting property is a generous act, it comes with a few formal steps to make sure it’s official. This guide will walk you through how to register a gift deed easily and legally.
Step 1: Draft the Gift Deed
The first thing you need to do is create the gift deed itself. This document formally states that you are giving property to someone. It needs to include:
- Information about both parties: the person giving the gift (Donor) and the person receiving it (Donee).
- A detailed description of the property, including its location, size, and any other important details.
- The relationship between the Donor and Donee (which may affect taxes).
- A declaration that the gift is being given willingly, with no money or force involved.
- Signatures from both parties to confirm the agreement.
Although it’s possible to write this document yourself, it’s smart to have a lawyer assist you to ensure it’s legally sound.
Step 2: Donee’s Acceptance
The gift only becomes valid once the Donee accepts it during the Donor’s lifetime. This acceptance should be noted in the gift deed. If the Donee doesn’t accept, the deed has no legal effect.
Step 3: Stamp Paper for the Deed
After drafting the gift deed, it must be printed on non-judicial stamp paper. The stamp paper’s value varies depending on your state and the type of property. In some cases, states charge lower stamp duties for gifts between close family members like spouses or children.
Step 4: Register the Gift Deed
To make the gift deed legally binding, you must get it registered at the Sub-Registrar’s office. This step is mandatory under law. Here’s how it works:
What You Need:
- The original gift deed.
- Proof of identity for both the Donor and Donee (like Aadhar or PAN cards).
- Documents that prove property ownership (such as a previous sale deed or property tax receipt).
- Two witnesses who will sign the deed.
Registration Fees:
You will need to pay a registration fee on top of the stamp duty. The fee amount varies by location but typically ranges around 1% of the property’s value.
Signing the Gift Deed:
Both the Donor and Donee, along with their witnesses, must go to the Sub-Registrar’s office to sign the deed in front of the official. Once everyone signs, the deed is registered and becomes legally valid.
Step 5: Receive the Registered Gift Deed
After the registration is complete, the Sub-Registrar’s office will provide you with a registered copy of the gift deed. This document is proof that the property has officially been transferred to the Donee.
Key Things to Remember:
- Stamp Duty and Fees: These costs differ by state and depend on the property’s value. Be sure to research the rates in your area.
- Tax Considerations: Gifts between family members (like parents, children, or spouses) are typically tax-exempt. However, gifting property to others may have tax consequences, so it’s wise to speak with a tax expert.
Conclusion
Though the process of registering a gift deed may seem complicated, following the right steps makes it straightforward. From drafting the deed, confirming acceptance, and paying the fees, to registering the document at the Sub-Registrar’s office, it’s all about ensuring the transfer is done legally and properly.
Gifting property is a meaningful way to share what you have with those you care about. Getting the deed done right will help avoid any future legal problems and ensure peace of mind for both the giver and receiver.