Gift deed is a legal document that transfers ownership of a property or asset from one person to another without any monetary consideration. The process of registering a gift deed is essential to make it legally valid and enforceable. In this article, we will discuss the gift deed registration process in India in detail.
What is a Gift Deed?
Table of Contents
A gift deed is a legal document that is used to transfer the ownership of a property or asset from one person to another without any consideration. The person who transfers the property or asset is known as the donor, and the person who receives it is known as the donee. The gift deed can be used to transfer any type of property or asset, such as real estate, money, shares, etc.
Gift deeds are often used by parents to transfer their property to their children as a gift, or by family members to transfer property to each other. The gift deed can also be used to transfer property to a trust, charitable organization, or any other entity.
What Is the Gift Deed Registration Process?
The gift deed registration process is the process of registering the gift deed with the relevant authority to make it legally valid and enforceable. The process involves the following steps:
Step 1: Preparation of the Gift Deed
The first step in the gift deed registration process is to prepare the gift deed. The gift deed should be drafted by a qualified lawyer to ensure that it is legally valid and enforceable. The gift deed should include all the necessary details, such as the name and address of the donor and the donee, a description of the property or asset being gifted, and any conditions or restrictions on the gift.
Step 2: Stamp Duty and Registration Fees
The next step is to pay the stamp duty and registration fees. Stamp duty is a tax levied by the state government on the transfer of property or assets. The amount of stamp duty varies from state to state and is usually a percentage of the market value of the property or asset being gifted. The registration fees are also a one-time fee that is paid to the government for registering the gift deed.
Step 3: Execution of the Gift Deed
The gift deed should be executed by the donor and the donee in the presence of two witnesses. The witnesses should also sign the gift deed. The donor should hand over the gift deed to the donee after the execution.
Step 4: Registration of the Gift Deed
The final step in the gift deed registration process is to register the gift deed with the relevant authority. The gift deed should be registered with the sub-registrar of the area where the property or asset being gifted is located. The donor, the donee, and the witnesses should be present at the time of registration.
The following documents are required for the registration of the gift deed:
- Original gift deed
- Identity proof of the donor and the donee, such as a PAN card or Aadhaar card
- Address proof of the donor and the donee, such as a utility bill or bank statement
- Two passport size photographs of the donor and the donee
- Proof of payment of stamp duty and registration fees
The sub-registrar will verify the documents and ensure that the gift deed is in compliance with all the legal requirements. Once the registration process is complete, the gift deed will be considered legally valid and enforceable.
Know More: What are the documents required for gift deed registration?
Conclusion
The gift deed registration process is an essential step in transferring ownership of a property or asset from one person to another without any monetary consideration. The process involves the preparation of the gift deed, payment of stamp duty and registration fees, execution of the gift deed, and registration with the relevant authority. It is important to consult a qualified lawyer and follow the legal requirements to ensure that the gift deed is legally valid and enforceable.