Section 122 of the Transfer of Property Act, 1882 defines gift as the transfer of certain existing immovable property, which is made voluntarily and without consideration, by one person to another.
The person who transfers the property is called donor, and the person who receives the property is called donee.
Acceptance of the gift by the donee during the lifetime of donor is a prerequisite of a gift. Unless a gift is completed as per the requirements of the law, it is not considered a gift, and mere intentions won’t matter. Once a gift has been made, and the property has been transferred, the same cannot be rescinded.
Section 123 of the Transfer of Property Act enumerates how an immovable property is transferred by way of gift.
A transaction of gift should be done by
- Registered instrument
- Signed by or behalf of the donor
- Attested by atleast two witnesses.
The gift deed is a document which is compulsorily registrable, non registration would not have the effect of transfer of property.
Any obligation attached to the gifted property passes on to the donee with the transfer of immovable property.
Stamp duty payable on gift deed
Since a gift deed is a document by which a right is created, hence stamp duty is payable. It varies for various states but is normally equal to the conveyance for a consideration of similar value as set forth in the gift deed.
