Gift Deed

A Gift Deed in Delhi is a legal document used to transfer ownership of immovable property (like land or a house) or movable property from one person (the donor) to another (the donee) voluntarily and without any exchange of money or consideration. It's an act of giving property out of love and affection.

Key Elements of a Gift Deed:

A valid Gift Deed in Delhi must contain the following:

• Details of the Donor and Donee: Names, addresses, and relationship between them.

• Description of the Property: A clear and detailed description of the property being gifted, including its address, area, boundaries, and any identification numbers.

• Statement of Gift: An explicit declaration by the donor of their intention to gift the property to the donee.

• Acceptance by the Donee: A statement indicating that the donee accepts the gift during the lifetime of the donor. This acceptance is crucial for the validity of the gift.

• No Consideration: A clear mention that the transfer is being made without any payment or exchange.

• Delivery of Possession: Details about when the physical or symbolic possession of the property is transferred to the donee.

• Donor's Rights: A statement confirming the donor's ownership and right to transfer the property.

• Witnesses: Signatures and details of at least two witnesses who have witnessed the signing of the deed by the donor.

• Execution Date and Place: The date and place where the Gift Deed is signed.

Registration of Gift Deed in Delhi:

Under Section 123 of the Transfer of Property Act, 1882, and Section 17 of the Registration Act, 1908, the registration of a Gift Deed for immovable property in Delhi is mandatory to make it legally valid. The process involves:

• Drafting the Gift Deed: Prepare the Gift Deed with the help of a lawyer or deed writer. Ensure all necessary clauses are included. Online deed writing services are available on the Delhi Online Registration Information System (DORIS) portal.

• Valuation of Property: The property being gifted needs to be valued by an approved valuer for stamp duty purposes.

• Payment of Stamp Duty: Stamp duty is payable on the registration of a Gift Deed in Delhi.

  1. Female Donee: 4% of the property's value or the circle rate, whichever is higher.

  2. Male Donee: 6% of the property's value or the circle rate, whichever is higher.

• Payment of Registration Fee: A registration fee of 1% of the property's value, along with ₹100 as pasting charges, is payable.

• Schedule an Appointment: Book an online appointment at the Sub-Registrar's office through the DORIS portal (https://doris.delhigovt.nic.in/). All Sub-Registrar offices in Delhi have migrated to the National Generic Document Registration System (NGDRS) portal, so use the relevant platform.

• Visit the Sub-Registrar's Office: On the appointed date and time, the donor, donee, and two witnesses must be present at the Sub-Registrar's office with the following original documents and their photocopies:

  1. Original Gift Deed on stamp paper.

  2. Identification proofs (Aadhaar Card, PAN Card, Passport, Voter ID, etc.) of the donor, donee, and witnesses.

  3. Proof of address of all parties and witnesses.

  4. Original title documents of the property.

  5. Valuation report of the property by an approved valuer.

  6. Passport-sized photographs of the donor and donee.

  7. PAN cards of the donor and donee.

  8. Payment receipts for stamp duty and registration fees.

• Verification and Biometric Authentication: The Sub-Registrar will verify the identities and the documents. Biometric impressions and photographs of the donor and donee will be taken.

• Signing the Deed: The donor, donee, and witnesses will sign the Gift Deed in the presence of the Sub-Registrar.

• Registration: The Sub-Registrar will register the Gift Deed and provide a receipt.

• Collection of Registered Deed: The registered Gift Deed can be collected from the Sub-Registrar's office after a few days upon presenting the receipt.

Important Considerations:

• Voluntary Transfer: The gift must be made willingly and without any pressure or coercion.

• Acceptance: The donee must accept the gift during the donor's lifetime.

• Existing Property: Only existing property can be gifted, not something to be acquired in the future.

• Sound Mind: The donor must be of sound mind while making the gift.

• Irrevocability: Generally, once a gift deed is duly executed and registered, it cannot be revoked by the donor unless there's a specific condition for revocation agreed upon by both parties at the time of the gift.

• Tax Implications: Gifts of immovable property exceeding ₹50,000 in value may have tax implications for the donee under income tax laws. Stamp duty is also applicable. Gifts from close relatives (as defined under income tax laws) are usually exempt from income tax.

By following this procedure, a valid transfer of property through a Gift Deed can be completed in Delhi. It is always advisable to seek legal counsel for drafting and registering the deed to ensure compliance with all legal requirements.

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