Making a Gift Deed for Property Transfer in West Bengal

Introduction to Gift Deed for Property Transfer in West Bengal

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 West Bengal, 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 West Bengal

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 West Bengal?

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 West Bengal

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 West Bengal

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 West Bengal. 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 West Bengal

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 West Bengal

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 West Bengal

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.

Experienced Lawyers for Gift Deed for Property Transfer in West Bengal

When it comes to transferring property through a Gift Deed, it is crucial to consult with experienced legal professionals. The Gift Deed for property transfer is a legal document that allows a person (donor) to voluntarily transfer their property to another (donee) without any monetary exchange. A well-drafted Gift Deed can help avoid future disputes and ensure the process is legally sound. Below are some highly experienced lawyers based in West Bengal who specialize in Gift Deeds for property transfer, providing expert legal advice and services to facilitate smooth property transfers.

1. Advocate Sudhir Mukherjee

• Services: Gift Deed for Property Transfer, Legal Consultation for Property Transactions, Gift Deed Drafting, Property Transfer Agreements
• Address: 15/2, Ballygunge Park Road, Kolkata, West Bengal
• Contact: +91-8588887480
• Qualification: LLB from University of Calcutta
• Experience: 10+ years
• Description: Advocate Sudhir Mukherjee is a seasoned lawyer with extensive experience in handling Gift Deed property transfers. He provides clients with detailed legal guidance on drafting and registering Gift Deeds to ensure compliance with local laws and avoid any disputes in the future.

2. Advocate Priya Roy

• Services: Gift Deed, Property Transfer, Legal Advice for Gift Deed Registration, Property Disputes Resolution
• Address: 34, Sarat Bose Road, Kolkata, West Bengal
• Contact: +91-8588887480
• Qualification: LLB from Presidency University, Kolkata
• Experience: 8+ years
• Description: Advocate Priya Roy is a highly skilled lawyer with a strong focus on gift deed drafting and registration. Her expertise lies in assisting clients with clear, legally sound gift deeds, and ensuring smooth property transfers while minimizing legal complications.

3. Advocate Ramesh Kumar Singh

• Services: Gift Deed Legal Services, Property Transfer, Legal Documentation, Estate Planning
• Address: 88, New Alipore, Kolkata, West Bengal
• Contact: +91-8588887480
• Qualification: LLB from National University of Juridical Sciences (NUJS), Kolkata
• Experience: 12+ years
• Description: With over a decade of experience in property law, Advocate Ramesh Kumar Singh specializes in Gift Deeds for property transfer. He is known for his meticulous attention to detail in legal documentation and his ability to handle complex property disputes with ease.

4. Advocate Sneha Bhattacharya

• Services: Gift Deed Drafting, Legal Guidance on Property Transfer, Estate Transfer Legalities
• Address: 112, B T Road, Kolkata, West Bengal
• Contact: +91-8588887480
• Qualification: LLB from Vidyasagar University, West Bengal
• Experience: 9+ years
• Description: Advocate Sneha Bhattacharya offers professional services related to Gift Deeds and property transfer. Her expertise includes drafting clear, valid gift deeds, ensuring legal clarity in property transfer processes, and assisting clients in navigating the registration process smoothly.

5. Advocate Arun Mukherjee

• Services: Gift Deed Drafting, Property Transfer Legalities, Property Registration, Estate Planning
• Address: 5, Park Street, Kolkata, West Bengal
• Contact: +91-8588887480
• Qualification: LLB from Calcutta University
• Experience: 7+ years
• Description: Advocate Arun Mukherjee specializes in property transfers, particularly in drafting and managing Gift Deeds. He has a strong reputation for helping clients with a straightforward, legally secure process for transferring property via gift deeds.

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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