What is a Gift Deed?

A Gift Deed is an important legal document that signifies the transfer of a gift as per the provisions of the law from one person to the other. The donor can transfer both movable (eg: cars, watches, jewelry, etc) and immovable property (eg: house,) to the donee voluntarily as per the Transfer of Property Act.

Please note that there is no 'consideration' in a Gift Deed or no amount payable against the gift in a Gift Deed. The main purpose of a Gift Deed is to gift a property to another person out of love and affection. It is important to register the Gift Deed while transferring or gifting immovable properties.

The donor in the Gift Deed must be the rightful owner of the property he intends to gift, and cannot be a minor.

The transfer should be free from any undue influence, fear, or threat. The details of the property gifted must be duly mentioned in the Gift Deed. The relationship between the Donor and Donee must be clearly mentioned as most states in India have concessions on Stamp Duty charges on Gift deeds if the Donor and Donee are blood relatives.

A Gift Deed can also be executed in favor of a third party, however, in such cases, the stamp duty is higher.

The main difference between a Gift Deed and a Will is that a Gift Deed is executed when the donor is alive, while a Will is executed after the death of the owner. Please note that the Stamp Duty and Registration Fees for Gift Deeds are different in different States of India.