In India, gifting is a way to legally transfer property that is movable or immovable to a blood relative or non-blood relative out of gratuity and love.
It is done so without any consideration and should be registered with the sub-registrar to make it a legally valid transaction. In this blog, we’ll learn about the essentials of Gift Deeds in blood relations.
What is a Gift Deed?
- A gift deed is a legal document used to transfer property ownership from the legal owner of the property to a relative, friend, or family.
- The rights are transferred voluntarily without any considerations. The deed of gift is required to be registered with the concerned sub-registrar of the district.
- The individual gifting the property that is either movable or immovable is the ‘donor.’
- The individual receiving the gift is called the ‘donee.’
- Registering a gift deed makes it legally valuable and enforceable. The Transfer of Property Act 1882 regulates and governs gifting through various provisions.
- Immovable property is necessarily registered as a mandatory action by law as per section 117 of the Indian Registration Act.
- Movable property may or may not be registered such as cash gift deeds in blood relations that do not need mandatory registration.
- A cash gift deed in blood relation may or may not be registered, but it will be beneficial to register the cash gift deed in blood relation as it acts as evidence later on.
- The cash gift deed in blood relation can be made as a gift for anniversaries, birthdays, or marriage occasions and such gifts are also exempt from tax implications.
Importance of Cash Gift Deed in Blood Relation
When donating a big quantity of money as a present, a gift deed for cash is a crucial document to maintain on hand since it records the giving of the gift. It produces a record with legal force. A gift deed ensures that both the donor and the donee have documentation of the transfer, preventing misunderstanding and unauthorised usage in the future.
What Information Should Be in a Cash Gift Deed in Blood Relation?
A monetary donation deed to family members should solve the following issues:
- Information about the donor and donee (such as name, birth date, place of residence, relationship, and father’s name)
- the amount of cash received as a gift,
- Please include an explanation if there is a purpose for the gift.
- a statement that the action was carried out willingly and without the use of force or compulsion
- a sentence confirming that the donor is solvent,
- a statement that the gift is being given without consideration.
- the transaction’s time and place,
- Signatures of the giver and the recipient, as well as the names and contact details of two witnesses, are required if there are any restrictions or demands.
Cash Gift Deed in Blood Relation Gifting Procedure
A lawyer’s aid is required when creating a cash donation deed. Giving is a deliberate act, and the gift document should specify that the giver is giving the money voluntarily, without being forced or under duress.
The method of the donee’s signature on the deed should also reflect the donee’s acceptance of receiving such a gift. A gift deed for money must be registered if required to do so by the Registration Act. Depending on the amount of the gift and the state’s regulations, stamp duty may also need to be paid.
Cash Gift deed in Blood Relation
- Registration is not made mandatory for a cash gift deed in blood relation. The donor can choose the amount and the mode of giving such gifts.
- The cash gift deed in blood relation can also be written on a blank paper and signed by both parties, or they can exchange letters stating the transfer.
Importance of having a gift deed for cash transfer
- The transfer of cash through a gift deed is an important transaction, and a document to prove it is as necessary as the document itself.
- It is essential to have evidence where a large amount is being gifted. Cash gift deeds in blood relations can be legally binding if registered.
- A cash gift deed in blood relation is the evidence that both donor and donee are aware of such transaction and attest a document regarding the same.
What should be mentioned in the Cash Gift deed in Blood Relation?
- Information and details of both donor and donee, such as names, addresses, contact information, and identity proof.
- The amount given should be stated clearly in the cash gift deed in blood relation.
- The reason for gifting such an amount can be stated elaborately in the cash gift deed in blood relation.
- It should be mentioned that it was a voluntary transfer, and no undue influence or coercion was involved.
- The cash gift deed in blood relation should contain a few clauses which mention how the donor is not insolvent or of unsound mind.
- The cash gift deed in blood relation should contain a clause that the gift contained no consideration.
- The date, time, and location should be given in the deed.
- Both parties’ signatures are required, along with two witnesses mentioned in the cash gift deed in blood relation.
The parties may seek online legal advice to provide the necessary documentation for registration, as the authorities prescribe no documentation.
The cash gift deed in blood relation can be done without any trouble as it is not mandatory to register it or settle it. However, it is suggested to consult a professional lawyer to get your Gift Deed drafted.