{"id":27752,"date":"2024-04-16T12:55:34","date_gmt":"2024-04-16T12:55:34","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/16\/what-is-a-gift-deed-some-simple-points-for-easy-understanding-business-times-of-india\/"},"modified":"2024-04-16T12:55:34","modified_gmt":"2024-04-16T12:55:34","slug":"what-is-a-gift-deed-some-simple-points-for-easy-understanding-business-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/16\/what-is-a-gift-deed-some-simple-points-for-easy-understanding-business-times-of-india\/","title":{"rendered":"What is a gift deed? Some simple points for easy understanding | Business – Times of India"},"content":{"rendered":"
\"What<\/div>\n
Gift deed: Want to give your loved ones a special gift? A gift deed in India can make sure the transfer is smooth and secure, whether it’s a family heirloom or a valuable property. Here\u2019s how you can make use of gift deeds to transfer your wealth: <\/p>\n

What’s a gift deed?
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A gift deed is a document that officially records the transfer of an asset (like jewellery, a car, or even land) from you (the donor) to the recipient (the donee).It serves as concrete proof of your generous intentions and prevents potential misunderstandings down the line. <\/p>\n

Why use a gift deed?
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While not mandatory for all gifts, a gift deed offers several advantages:
Clarity and security: <\/span>The document removes any uncertainty about the transfer by clearly stating the gift details and the recipient’s acceptance, minimising the chance of future family disagreements.
Legally binding: <\/span>For land or buildings, a gift deed is necessary for legal recognition. Registration under the Transfer of Property Act is required, along with paying stamp duty based on the property’s value.
ALSO READ | <\/span>New KYC rules for mutual fund investors: You may need to update your KYC again! Details here<\/a><\/p>\n

Making a gift deed
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When making a gift deed, it is important to reflect the donor’s voluntary intent and financial stability. This ensures that the gift is given freely, without any pressure or coercion.<\/p>\n

Accepting the gift deed
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Once the gift deed is prepared, the recipient’s acceptance should be recorded by their signature on the document. It is important that this acceptance takes place while the donor is alive to make the gift valid.<\/p>\n

Registering the deed<\/h3>\n<\/p>\n

For immovable property, registration under the Transfer of Property Act is necessary. Paying the appropriate stamp duty, based on the property’s value, is essential to legalise the transfer.<\/p>\n

Gift deeds: Key points to remember
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Once gifted, it’s done: <\/span>Generally, gifts cannot be revoked after they’re given. The deed solidifies this finality.
Tax implications<\/span>: <\/span>Gifts between close relatives, as defined by the Income Tax Act, 1961, may be exempt from taxes for the recipient. However, it’s always recommended to consult a tax advisor for specific guidance.
With inputs from Centre for Investment Education and Learning content which appeared in Economic Times<\/div>\n