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A Registered Gift Deed is a legal document through which a property owner voluntarily transfers the ownership of his property to a person without any consideration. It can be movable or immovable property. The person who gifts the property is called the donor and the person who receives the gifted property is called the donee. The donor must voluntarily gift his property to the donee without compensation or consideration. The gift must be accepted by the donee during the lifetime of the donor for the gift to be legally valid. If the gift deed is not accepted by the donee during the lifetime of the donor, it has no legal validity and the deed of gift is void. A gift deed of immovable property becomes effective after it is registered with the Sub-Registrar concerned and by delivery of possession. A registered gift deed has no value if possession is not transferred or the donee refuses to take possession, the donor has the power to cancel the registered gift deed.
PARTIES IN A GIFT DEED
There are two parties in a gift deed, one is the donor and the other is the donee. The donor is the person who gifts the property and he must have the right as well as the power to make the gift. At the time of making a gift, the donor must be a competent person and must attain the age of majority, and must have a sound mind. Similarly, a deed of gift registered by a minor or insane person is void.
There is no compulsion that the donee must be a competent person to enter into a contract at the time of registration of the gift deed. A gift deed is valid if it is made to an insane person or a minor or even to a child existing in the mother’s womb. In such a case a competent person should accept the gift on their behalf.
ESSENTIAL KEY ELEMENTS
1) A gift deed is a compulsorily registrable document. A gift deed must be registered as there is no acceptance of an unregistered gift deed.
2) The property in the gift deed must exist and the donor must have absolute right and possession over the property.
3) The donor must make the gift voluntarily and with free consent. If the donor’s consent is obtained by force, coercion, and undue influence, the gift deed will be void. The donee has to prove that the gift deed was made voluntarily with the free consent of the donor.
4) A deed of gift deed should be executed out of love and affection towards the donee without any consideration.
5) Acceptance of the gift must be made during the lifetime of the donor while competent to contract and before the donee dies.
6) Delivery of possession of the property is an essential condition for a valid gift. If the donor does not hand over the possession of the property or the donee does not take possession of the property, the gift deed is void.
GIFT DEED REGISTRATION CHARGES
The gift deed registration charges in Kolkata, West Bengal include stamp duty and registration fees. The stamp duty is based on the market value of the property being gifted, and it varies depending on whether the donee is a family member or not.
• For a gift deed of immovable property where the donee is a family member of the donor, the stamp duty is 0.5% of the total market value.
• For a gift deed of immovable property where the donee is not a family member of the donor, the stamp duty varies based on the location of the property. In Panchayat areas, the stamp duty is 5% of the total market value, and in Municipal areas, the stamp duty is 6% of the total market value.
• In addition to stamp duty, there is a fixed registration fee for all types of gift deeds in West Bengal. The registration fee is 1% of the total market value of the gifted property.
A Gift Deed is a legal document through which a property owner voluntarily transfers the ownership of his property to a person without any consideration.
The person who gifts the property is called the donor.
The person who receives the gifted property is called the donee.
No, a minor cannot be a donor. A minor cannot gift his property.
Yes, a minor can be a donee. A gift deed is valid if it is made to a minor or even to a child existing in the mother’s womb. In such a case a competent person should accept the gift on their behalf.
The property owner can gift his property. The donor must be a competent person and sound minded and must attain the age of majority.
As per the Transfer of Property Act, a gift of immovable property must be affected by a registered deed. An unregistered gift deed is not legally valid.
Generally, a minimum of two witnesses is required to attest the gift deed. There is no upper limit. The donor can appoint as witnesses more than two persons.
The donor must appear before the Sub-Registrar at the time of registration of the gift deed. If the donor fails to appear before the Sub-Registrar, the registration of the gift deed will be cancelled.
The stamp duty on gift deeds varies from state to state. In West Bengal, if the property is gifted to the family member then this stamp duty is 0.5 percent but if the property is gifted to a person other than the family member then stamp duty is payable as per registration of the sale deed.
The reasons for the revocation of the gift deed are as follow:
a) A gift deed can be revoked by mutual consent of both parties.
b) If the gift deed is made by force, coercion, and undue influence.
c) If the gift deed is not accepted during the lifetime of the donor.
d) If the possession of the property is not delivered.
No, the gift of non-existing is not legally valid therefore gift of future property is invalid.
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