A gift deed is a legal document used to transfer ownership of property or assets from one person (the donor) to another person (the recipient) as a gift. To create a valid gift deed in India, you typically need the following documents and information:
Gift Deed Document: The primary legal document that outlines the details of the gift, including the names and addresses of the donor and recipient, a clear description of the property or asset being gifted, and the nature of the gift as a “gift without consideration.”
Title Deed of the Property: If the gift involves real estate, you will need the title deed of the property to establish ownership and legal status.
ID and Address Proof of Donor and Recipient: Both the donor and the recipient must provide their identification and address proof. This can include:
- Aadhar card
- passport
- voter ID
- driver's license
- any other government-issued identity document.
Passport-sized Photographs: Recent passport-sized photographs of both the donor and the recipient are usually required and may need to be affixed to the gift deed.
Receipt of Stamp Duty Payment: Stamp duty is applicable to gift deeds in India. You must pay the appropriate stamp duty based on the property’s value. Ensure that you have a receipt as proof of payment.
No Objection Certificate (NOC): In some cases, you may need to obtain a No Objection Certificate from the housing society or relevant authority, especially for properties located in cooperative housing societies or apartment complexes.
Banker’s Cheque for Consideration Amount: A nominal consideration amount is mentioned in the gift deed, even though it’s a gift without consideration. You may need to prepare a banker’s cheque for this amount.
Witnesses: The gift deed needs to be signed in the presence of witnesses. The witnesses may need to provide their identification and address proof.
Gift Tax Return (if applicable): Gift tax may apply depending on the relationship between the donor and recipient and the value of the gift. You may need to file a gift tax return if the gift exceeds the specified exemption limits.
A Gift Deed is a legal document that allows the transfer of ownership of a valuable item, property, or asset as a gift. It is typically used when someone wants to give an asset to another person without any consideration or payment.
Almost any asset can be gifted through a Gift Deed, including real estate, cash, jewellery, stocks, vehicles, and more.
Yes, a Gift Deed is a legally binding document, and it transfers ownership of the gifted property from the donor to the recipient.
A Gift Deed must include details of the donor and recipient, a description of the gifted property, the intention to gift the property, and the acceptance of the gift. It should also be signed and witnessed.
While it is not mandatory to involve a lawyer, it is strongly recommended to seek legal advice when creating a Gift Deed, especially when dealing with valuable assets or real estate. A lawyer can ensure the document complies with local laws and is properly executed.
Yes, you can gift property with an outstanding mortgage or loan. However, the recipient will typically become responsible for the outstanding debt unless otherwise specified in the Gift Deed.
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