Income tax has to be paid if its stamp duty value exceeds Rs. 50,000. Anything lower than this value will be exempted from paying Income Tax

The most crucial document to get a Gift Deed Registered is the Sale Deed which proves the ownership of the property by the Donor

Yes. The Transfer of Property Act requires the Gift Deed to be registered.

Gift Deed Registration enhances the legitimacy of transfer of the asset and can be used in case of a conflict.

Any property (movable/immovable) that you have legal ownership over can be gifted.

You can get your Gift Deed reviewed by an expert property lawyer on the ezyLegal platform. Upload your document and schedule a Consultation Call with the Lawyer.

After you purchase Gift Deed Registration service from ezyLegal, your call will be scheduled with a Lawyer to discuss your specific requirements. The lawyer will draft your Gift Deed and get it registered.

You can collect the registered Gift Deed from the Registrar’s office after 3-5 days from the date of registration. ezyLegal can collect the Registered Gift Deed (original) and get it home delivered at additional charges.

The donor and donee should sign on all pages of the gift deed and must be attested by at least two witnesses. The donee must accept the gift in the lifetime of the donor and when the donor is of sound mind for it to be valid. The value of the stamp paper on which the gift deed is executed varies from state to state.

You are not a party to transactions and moreover if the donation is by means of a gift and the intention of the donor is to donate and the donee has accepted the gift the same is a binding transaction. Unless the element of fraud, misrepresentation and mental condition are made out, revoking the gift is not possible. If the recipient wants to give the gift away or donate it to charity, the law says that this is just fine. The only time someone can ask for a gift back is if the gift was given in exchange for a promise. This is known as a conditional gift.

Gifting property to family members with a deed of gift Despite the amounts involved, it is possible to transfer ownership of your property without money changing hands. This process can either be called a deed of gift or transfer of gift, both definitions mean the same thing.

It’s generally better to receive real estate as an inheritance rather than as an outright gift because of capital gains implications. The deceased probably paid much less for the property than its fair market value in the year of death if they owned the real estate for any length of time.

Yes, you can sell a gifted property if you have received the property under a registered Gift Deed without any condition attached.

Gift (i.e. immovable property received without consideration) received only on the occasion of the marriage of the individual is not charged to tax. Apart from marriage, there is no other occasion when a gift received by an individual is not chargeable to tax.

If the aggregate value of gifts (whether in cash or in-kind) received from a person or persons (except relatives as specified above) in any financial year does not exceed Rs. 50,000/-, then such gifts are not liable to Gift Tax.

No, Cash gifts aren’t considered taxable income for the recipient. That’s right—money given to you as a gift doesn’t count as income on your taxes.

Generally, the answer to “do I have to pay taxes on a gift?” is this: the person receiving a gift typically does not have to pay gift tax. The giver, however, will generally file a gift tax return when the gift exceeds the annual gift tax exclusion amount.

The donor can revoke/cancel a gift transaction through a provision mentioned in the gift deed or by mutual understanding between the two parties or upon the happening of an event mentioned in the deed. A gift transaction can also be cancelled if the donor signed the deed under undue influence or coercion.

Yes, the property received under Gift Deed can be sold. Provided that you have received the property under registered Gift Deed without any condition attached.

Writing a plain typed note on paper will generally suffice. It is not required to be stamped and registration is also not needed. Mention the names of persons, their relation and that the gift is being given out of love and affection. However, a gift deed can be made in stamp paper for such purposes also

A gift deed can be challenged in court if the deed is prepared forcefully by the owner of the property or without the consent of the owner of the property. If the gift deed has any additional conditions and those conditions are not fulfilled then in that case the gift deed can be revoked.

It should be voluntarily given by the donor. It should be accepted by the donee during his lifetime. If all these conditions are satisfied, it will be a valid gift. Upon his death, the property would devolve to his heirs.

A bonafide gift cannot be cancelled unilaterally. The court needs to be involved to revoke a bonafide gift. A gift deed has a limitation period of 3 years, meaning no acceptance has been within 3 years of the completion of the registration instrument.

Gift received only on the occasion of the marriage of the individual is not charged to tax. Apart from marriage, there is no other occasion when a gift received by an individual is not chargeable to tax.

A will over the deed of gift is advisable when you want to ensure a smooth succession of your assets after your death and where your purpose is to let your nominees inherit your properties. However, we use a deed of gift if you want to help someone who is in need of immediate help, it can only be achieved through the execution of the deed of gift.

Movable assets can, generally, be gifted just by hand delivery with no need of gift deed stamp duty but gifts of the immovable property need to be done through gift deed which attracts stamp duty on gift deed at the market value of the property as on the date of execution of the gift deed and is also required to be registered with gift deed registration charges.

Stamp duty for gift deeds is 2.5 percent of the property value in case the property is being transferred via gift deed in blood relation in the name of the father, mother, son, sister, daughter-in-law, grandson or daughter as a gift which attracts gift deed stamp duty.

Yes, it is possible, Section 126 of  Transfer of Property Act states that the gift can be taken back if the conditions required for revocation are met.

As mentioned in the Income Tax Act 1961, a cash gift is taxed as income in the hands of the recipient if its value exceeds Rs. 50,000.