Who can Gift Property?Īnyone property owner capable of entering into a contract can gift said property. Failure to register the deed will render it invalid. However, gifts from relatives are exempt from tax.Ī gift deed must be registered, as per section 17 of the Registration Act, 1908, and section 123 of the Transfer of Property Act. Generally, such gifts are within the family, though there is no such restriction. A deed executed in this regard is a gift deed. If immovable property is transferred from its owner to another party without payment, it is called a gift. To make this transfer valid, though, you need to create what is called a gift deed, register the agreement and pay stamp duty on the property. If you wish simply to transfer your house or any other property (such as share certificates) to your children, or a relative, there is no exchange of money. The gift deed has to be registered according to the section 17 in the Registration Act, 1908 and the 123 section of the Transfer of Property Act. Mostly, such gifts are within the members of the family and there is no restriction. The deed which is executed in this regard is known as gift deed. When the house or any property is transferred from the owner to another person without any payment is called the gift.

Any subsequent registration of a gift deed after the death of the donor at the instance of the donee does not offend Section 123 of the Transfer of Property Act, 1882. Verified at Delhi that all the contents of this affidavit are true and correct to the best of my knowledge and belief.In a 2019 judgment, the Kolkata High Court opined that it is not necessary for the validity of a gift deed that it must be registered by the donor himself. _.Ģ) I have made the above gift out of my natural love and affection towards the above person.ģ) _donee’s name_ is my _relationship_.Ĥ) I am an Income Tax Assessee and my PAN is _. _, do hereby solemnly affirm and declare that: –ġ) I gifted _ (_) Equity Shares of _company_ to _, R/o. In witness where of the parties as above have here in to set and subscribed their names on the date first above written. _ ( Rupees _ ), based on net worth of the company as on today’s date. In consideration of the natural love and affection, which the donor bears for the donee, the donor, out of her own free will and pleasure and in full possession of her senses, hereby made the above gift by way of transferring her _ Equity Shares of _ company _ bearing following distinctive numbers:- No. Now this declaration of gift witnesseth as follows: – Where as the donor out of her natural love and affection for the donee has made a gift of _ (in words) Equity Shares of _name of company_ to the donee, who is _relationship with donor_ of the donor. _, (herein after called the donee) of the other part: _, (herein after called the donor) of the one part, and _, R/o. This declaration of Gift is made on this _ day of _, _ between _, W/o _, R/o.

Sample deed of gift