Making a Gift Deed for Property Transfer in Gujarat

Introduction to Gift Deed for Property Transfer in Gujarat

When one individual gifts an immovable or movable property to another individual who may be a family member or non-family member, it is known as a gift. A gift has a valid form only if the giver and receiver are voluntarily doing it. The Gift Deed for property transfer involves the parties, stamp duty, features, and other contents, which are discussed in this blog.

When a person voluntarily gifts a property with no compensation in return, then there is a transfer of ownership under legal provisions. The gift is transferred through a “Gift Deed for property transfer,” which is a document containing all the details of the “donor” and “donee” and is protected by law for Gift Deed registration. 

There are several procedures and circumstances that should be taken into consideration before making a Gift Deed for property transfer.

What is a Deed of Gift in Gujarat, and why is it made?

• The agreement used to transfer property ownership from one person to another under legal terms is known as a Gift Deed. A Gift Deed for property transfer can be made, with or without consideration.
• It is made to register a property as per law and make it legal under Section 17 of the Indian Registration Act, 1908, and Section 123 of the Transfer of Property Act, 1882. 
• In most cases, the gift is without any compensation in return from family members or non-family members.
• The property involved is either movable or immovable and has to be mentioned elaborately in the Gift Deed for property transfer.
• Future claims and inheritance issues can be avoided through a Gift Deed for property transfer as it enables the owner to gift it to anyone. The Gift Deed registration makes it legally safe to deal with.
• A donor can gift any existing movable or immovable property. For this, a Gift Deed for property transfer is legally necessary to avoid litigations.

People Also Read: Detailed Guide on Property Gift Deed Rules

Types of Properties that can be Gifted in Gujarat

The types of properties that can be gifted to any family or non-family member are as follows:

• Movable property
• Immovable property

Points	Movable Property	Immovable Property
Meaning	An asset that can be moved to a different location without losing its size or quality.	One of those things that is anchored to the ground and cannot be moved.
Gift deed registration	It is not required.	It is required.
Examples	Jewellery, Shares	Real estate, Land

What are the Clauses mentioned in a Deed of Gift in Gujarat?

A Gift Deed for property transfer is a crucial legal document that makes the transfer legal in the eyes of the law. Various contents should be clearly mentioned in the Gift Deed clauses. These are:

• The clause of consideration should be mentioned, which explains that no compensation or money was involved in exchange for the gift, and it is voluntarily gifted to someone dear to them. The Gift Deed for property transfer will not be considered a gift if even a minuscule consideration is involved in the exchange. 
• The donor should be the sole owner of the immovable or movable property. It should exist in real-time possession and not by any future contract.
• The gift is only valid if it is made under free will, and no forgery, fraud, coercion, or threat is involved in the making of the Gift Deed for property transfer.
• Some states provide an allowance on stamp duty rates for blood relations or joint ownerships. So, it is necessary to mention the type of relation between the donor and donee to know if they are blood relatives or not.
• A brief description of the property involved must be noted in the Gift Deed for property transfer to ascertain that the property in question is “real” and existing property. Property structure, colour, build, and duration are also mentioned.
• The Gift Deed for property transfer contains any rights or liabilities that can be added in the future regarding the leasing or reselling of the gifted property.
• A revocation/termination clause should also be mentioned but not necessarily implied to avoid future disputes. In the case of any litigation issues that are not acknowledged by both parties, it is advisable to seek legal advice to clarify the matter.

Advantages of Using a Gift Deed in Gujarat

The advantages of employing a gift deed while investigating what is a gift deed are essential to make the correct choice while transferring the ownership rights to a loved one. Some of the benefits of employing a gift deed are as follows:

Legal Clarity and Transfer of Ownership

A gift deed facilitates easy transfer of property or assets to loved ones without any financial exchange. It facilitates a convenient means of passing on wealth with legal clarity which is pocket-friendly and also expresses the love and emotional intentions for the loved one.

Avoidance of Disputes and Smooth Succession Planning

Future disputes can be averted with a gift deed registration as it records the gift by the donor to one particular person. Once documented, the property cannot be claimed in the future, thus preventing future disputes. It also ensures smoother succession planning since it is a means of transferring assets to beneficiaries to heirs according to the donor’s desire.

Potential Financial Benefits

Besides ensuring legal clarity and prevention of disputes, a gift deed also ensures future financial gains in that it facilitates the transfer of property without monetary consideration. The stamp duty to be paid when transferring the property is minimized in most states in the nation ensuring a lower cost of ownership transfer compared to other alternatives.

Legal Framework for Gift Deeds in Gujarat

Knowledge of certain legal frameworks is as crucial as the knowledge of what is a gift deed and why it matters. The governing law for the gift deed is the Transfer of Property Act of 1882, which governs property transfer in Gujarat. The most critical sections of the act are Section 122 and Section 126, which cover the definition and cancellation of the gift deed, respectively.

Some requirements for a gift deed to be valid legally are as follows:

• Pre-existing property
• Voluntary gifting without any coercion
• Voluntary acceptance of the gift
• No money transaction in transfer of ownership

Registration of Gift Deed in Gujarat

The “Gift Deed for property transfer” is signed and verified by both parties. Both parties should have their tax duty and income tax cleared. Two witnesses are needed to attest to the Gift Deed. Then, the Gift Deed for property transfer will be registered with the following documents:

• The original copy of the Gift Deed. 
• PAN card.
• Aadhar card.
• Identity proof of each individual involved. (Voter ID, driving license, etc.)
• Sale deed to prove ownership title of the property.
• Any documents or agreements involved during the transfer or making of the Gift Deed for property transfer.

Other documents might be required for further legal verification and information which will be provided by the parties if asked by the registrar. The donor can seek legal advice if any issue is not clear to form a clause or register.

Steps for Gift Deed Registration in Gujarat

The following is to be followed while registering a gift deed valid in law and enforceable:

Preparation of Documents Needed for Gift Deed

The following documents are required for a registration of gift deed:

• Evidence of ownership given by the donor such as a title deed, certificate of ownership in assets or other property documents.
• Both the donee and the donor have to furnish proof of address and identity, i.e., Aadhar cards, passports, or voter IDs.
• A copy of the sale deed if the property was purchased earlier through it.
• An encumbrance certificate to prove a property free from legal dues or pending liabilities.
• Two witnesses along with their identity and address proofs during the registration and execution of the gift deed.

Visiting the Sub-registrar Office

The sub-registrar office of the locality receives stamp duty to sign and seal the gift deed. The donee and donor sign all the documents and witnesses sign it at the office itself.

Verification and Gift Deed Registration

The gift deed is then registered in the sub-registrar’s office after submission. The sub-registrar checks all the documents and their compliance as per law, and the sub-registrar issues a copy of the registered deed as its receipt/ legal evidence of the gift.

Stamp Duty and Exemptions in Gujarat

The stamp duty is determined on the basis of the state since different states have different stamp duties. It is charged in the case of gifting a property without any exemption. For instance, in Maharashtra, stamp duty is 5% for property valued over Rs. 50 lakhs.

Donor-donee relationship does not relieve the transaction of stamp duty, but several states in India grant a concession for such transactions between relations such as in Maharashtra, Delhi. While comprehending, what is a gift deed, familiarity with these local regulations becomes significant and useful.

Income Tax and Stamp Duty Charges

The stamp duty charge on Gift Deed for property transfer is different for every state and varies between 2% to 7% depending on the location, state of the building, and tax implications.

Example:

• Delhi – women 4% men 6%
• Karnataka – family members: 1000/- to 5000/- non-family members: 5.6%
• Punjab – family members: NIL and non-family members: 6%

The “Gift Deed for property transfer” must be mentioned for ITR filing (Income Tax Returns). In 2004 a new Gift Tax Act came into action after the old 1958 act was abolished. According to this act, the tax is incurred if the stamp duty value exceeds Rs 50000/- and is accepted without consideration. However, there are some cases where the tax can be waived.

Trusted Legal Experts for Gift Deed Property Transfer in Gujarat

Transferring property through a Gift Deed in Gujarat requires proper documentation and legal compliance to avoid disputes or future complications. A Gift Deed legally transfers ownership of a property from one person to another without any exchange of money. Engaging a qualified legal expert ensures the deed is drafted correctly, registered properly, and complies with all applicable state laws. Below is a list of seasoned legal professionals in Gujarat who specialize in handling Gift Deed for Property Transfer matters.

1. Advocate Rajesh Menon

• Services: Gift Deed Drafting, Property Transfer Consultation, Legal Verification of Documents
• Address: Satellite, Ahmedabad
• Contact: +91-8588887480
• Qualification: LLB from Gujarat National Law University
• Experience: 10+ years
• Description: Advocate Rajesh Menon brings a decade of experience in property and civil law, particularly Gift Deeds. He ensures a smooth transfer process by meticulously managing all legal aspects involved.

2. Advocate Sneha Patel

• Services: Gift Deed Registration, Legal Advice on Property Transfers, Drafting and Review
• Address: Alkapuri, Vadodara
• Contact: +91-8588887480
• Qualification: LLB from MS University, Baroda
• Experience: 8 years
• Description: Advocate Sneha Patel has handled numerous property gift transactions with precision. Her client-first approach and knowledge of local property laws make her a trusted name in legal circles.

3. Advocate Hardik Desai

• Services: Gift Deed Execution, Title Check, Property Law Consultation
• Address: Nanpura, Surat
• Contact: +91-8588887480
• Qualification: LLB from Symbiosis Law School
• Experience: 9 years
• Description: Known for his diligence and attention to detail, Advocate Hardik Desai simplifies the complex process of gift-based property transfer, making it legally secure and efficient for clients.

4. Advocate Nidhi Trivedi

• Services: Legal Documentation, Gift Deed Notarization, Transfer of Property by Gift
• Address: Karelibaug, Vadodara
• Contact: +91-8588887480
• Qualification: LLB from Nirma University
• Experience: 11 years
• Description: Advocate Nidhi Trivedi is an expert in family and property law, helping clients complete Gift Deeds seamlessly with proper legal protocols and registration.

5. Advocate Karan Shah

• Services: Drafting of Gift Deed, Legal Advice for Inter-family Property Transfer, Property Law Support
• Address: Bodakdev, Ahmedabad
• Contact: +91-8588887480
• Qualification: LLB from Government Law College, Mumbai
• Experience: 12 years
• Description: Advocate Karan Shah is highly experienced in dealing with property-related legalities, particularly in gifting real estate within families. His practical approach ensures timely and hassle-free property transfers.

Conclusion

The “Gift Deed for property transfer” is a vital document for an individual gifting an immovable property to a dear one without receiving any money in return. The “donee” receives it after clearing stamp duty charges. The registration process is completed by the registrar abiding by the necessary rules and regulations.

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