Gift Deed Immovable Property

What is a Gift Deed?

The Indian legal system has provided for various methods of transfer of a property. A property can be sold, can be transferred through a will, or it can be transferred as a gift through a gift deed.

This method is usually adopted when the transfer is being made to a friend or a family member. The property set to be transferred through a gift deed should fulfil some bare minimum criteria. This means that it must be transferred without any consideration; it should not be a future property; and finally, it should be tangible and thus, subsequently transferable.

Advantages of Gift Deed

• It transfers the property during the lifetime of the owner thus rendering an immediate and faster transfer, unlike a Will.
• Since the deed is registrable, it is less prone to go into litigation.
• Saves court time.
• Tax exempt in the hands of the donor and the done.

Essential Requirements of a Valid Gift Deed

• There must be two parties involved, a donor and a done.
• Transfer of ownership.
• The transfer must be voluntarily done.
• Transfer must be done without consideration.
• There must be acceptance by or on behalf of the donee.
• Acceptance must be made during the lifetime of the donor and while he is capable of giving.