Common questions

Does gift deed need to be on stamp paper?

Does gift deed need to be on stamp paper?

For registration of the gift deed, the gift deed containing all the clauses (as mentioned above) must be drafted on stamp paper. The donor and donee should sign on all pages of the gift deed and must be attested by at least two witnesses.

Does gift deed need to be registered?

The Gift Deed should be registered under Section 17 of the Registration Act, 1908 to consider it as a valid transaction. The details of the property, donor, and donee are mentioned in the deed. The donor should not be bankrupt while transferring the property. The gifted property should be tangible and transferable.

How do you execute a gift deed?

A gift deed will be signed by the donor and the donee in the presence of two witnesses. Approach to the nearest sub-registrar to submit the signed documents. Hire a lawyer for the calculation of the registration charges*, including stamp duty. You need to Pay the prescribed fees.

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Can gift deed be made on plain paper?

No stamp duty is payable on a gift of money. A Gift Deed of Money is not required to be registered. If the parties wish to, then they can register it, but this is not mandatory. Hence, a Gift Deed of Money can very well be executed on plain paper and signed by the parties.

What are documents required for gift deed?

Gift deed format

  • Date on which gift deed is being executed.
  • Name, Age, Address Details of the Donor.
  • Name, Age and Address Details of the Donee.
  • Relationship between the Donor and Donee.
  • Declarations made regarding encumbrances of the property by the Donor.
  • Statement of acceptance of the gift by the Donee.

Is unregistered gift deed valid?

The aforesaid judgment of the Supreme Court has held that an unregistered gift deed pertaining to immovable property is a valid gift in the case of Mohammedans if it fulfills the three conditions of there being a declaration by the donor, acceptance by or on behalf of the donee and delivery of the subject of the gift …

How much stamp duty do I pay on gift deed?

When it is gifted to any other person, the stamp duty rate is 5\% in panchayat areas and 6\% in municipal areas, corporation areas and urban areas. If the market value of the property is more than Rs. 40 lakhs, then an additional 1\% stamp duty is charged in both urban and rural areas.

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Should gift deed be notarized?

Notarized gift deed does not hold any value in the eyes of law and cannot be enforced. Registration of gift deed after payment of requisite stamp duty is mandatory as per law. Until and unless the transfer of immovable property is executed by a registered document, it is invalid in the eyes of law.

Can gift deed be challenged after 3 years?

Unfortunately, beyond three years from the date of execution of the registered gift deed, it cannot be challenged or cancelled as it is barred by limitation.

Can a gift deed be revoked?

A deed of gift once executed and registered cannot be revoked, unless the mandatory requirement of Section 126 of Transfer of Property Act, 1882 is fulfilled.

Do you have to pay stamp duty on a gift deed?

The registrar shall ensure that proper stamp duty has been affixed on the gift deed/document when it is presented for registration. The amount of stamp duty and registration charges payable, with respect to a gift deed, are generally the same as in the case of a regular sale.

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How long does it take to register a gift deed?

You can register the transfer within four months of executing the gift deed. Even in that case, the document will be valid from the date of execution and not from the time of registration. To register a gift deed, you must pay stamp duty and registration charges as specified by the state government.

Is it mandatory to execute a gift deed when gifting property?

In case you are gifting a movable property, it is not mandatory to execute a gift deed. In the gift deed, do mention that you are making the transfer out of natural love and affection for the donnee. Ideally, you should also mention the reason for making the gift in the gift deed. The reason could be for the general welfare or the person.

What are the documents required to get a gift deed?

Both, the donor and donee, must agree on this clause. Apart from the aforementioned documents, you will need to produce the original gift deed, as well as ID proof, PAN card, Aadhaar card, the sale deed of the property, as well as other documents pertaining to other agreements regarding this property.