A gift deed is a legal document that records the transfer of a gift, made willingly by the donor to the donee without any monetary exchange
The gift deed should reflect the donor's voluntary intent and solvency, ensuring that the gifting is done freely and without any force or coercion
Once a gift deed is created, the donee's acceptance of gift should be recorded in the deed by way of his signature. It is crucial that the acceptance of the gift occurs during the donor's lifetime in order to validate the gift.
For immovable property, registration under the Transfer of Property Act is essential. Stamp duty, based on the property's value, legalises the transfer.
1, A gift, once given, is irrevocable. 2. Gifts given to relatives as per the Income Tax Act, 1961, are tax exempt for the receipient.