Gift Deed
Gift Deed
Gift Deed
(e) Agreement to sell, sale, gift, lease, mortgage with possession or otherwise of any
agricultural land granted under the Karnataka Land Grant Rules, 1969 subject to
restrictions on sale, transfer, and specific use imposed there under as per the
provisions of the said Rules.
(2) One cannot possess land as owner, tenant or as mortgagee with possession in
excess of 10 units. If a family consists of more than five members, such family may
hold two units per head not exceeding 20 units.
PART A
[See Section 2(A)(35-A)
Classification of Lands
A Class
Lands having facilities for assured irrigation from such Government Canals and
Government Tanks as are capable of supplying water for growing two crops of paddy
or one crop of sugarcane in a year.
B Class
(i) Lands having facilities for assured irrigation from such Government Canals and
Government Tanks as are capable of supplying water for growing only one crop of
paddy in a year.
(ii) Lands irrigated by such lift irrigation projects constructed and maintained by the
State Government as are capable of supplying water for growing two crops of paddy or
one crop of sugarcane in a year.
C Class
(i) Lands irrigated from any Government sources of irrigation, including lift irrigation
projects constructed and maintained by Government other than those coming under A
Class and B Class.
(ii) Lands on which paddy crop can be raised or areca crop is grown with the help of
rain water.
(iii) Lands irrigated by lifting water from a river or Government Canal or Government
tank where the pumping installation or other device for lifting water is provided and
maintained by the land owner.
Notes
(1) Lands having facilities for irrigation from a Government Source where the system
of water supply is suitable for growing only light irrigated crop namely, crops other
than paddy and sugarcane shall come under this class.
(2) Lands growing irrigated garden crop will come under classes 'A', 'B' or 'C' as the
case may be depending upon the source of irrigation and the system of water supply.
D Class
Lands classified as dry but not having any irrigation facilities from a Government
source.
Note.- Lands growing paddy or garden crops not coming under A Class, B Class or C
Class shall belong to this class.
PART B
b. If a document is executed out of India, the period of four months will be counted
from the date of its receipt in India.
c. After four months document may be presented within another four months with
penalty subject to maximum of ten times the registration fees if the District Registrar
grants permission. But document may be presented before Sub Registrar within eight
months. Thereafter it cannot be accepted for registration. (For details please see Rule
52 of Karnataka Registration Rules, 1965).
Q 27 What is the day today timing for acceptance of deeds for registration in Sub
Registry offices?
Ans
Generally deeds are accepted during working hours. Sub Registrar may stop
accepting two hours before closing time if he has sufficient work to attend in respect
of deeds already received for registration.
Provided deeds may be accepted in emergency cases on payment of extra fee of
Rs.200 one hour before sunrise and one hour after sunset and on holidays.
Q28 Can the document presented for registration be withdrawn?
Ans Registering officer may permit withdrawal of the document before completion of
registration on written request by the party who presented the document. Fifty
percent of the registration fee is refundable. Likewise Stamp duty is also refundable
subject to deductions. (Please see question No.19 on stamp duty F.A.Q.)
Q 29 Who should be present at the time of registration?
Ans A deed may be presented for registration either by claiming or executing party
but the executant / executants must be present to admit execution (signing) of the
deed (Please see Sec.32 of Registration Act 1908).
Q 30 What is the course, if executing party refuses to appear in Registry Office to
admit execution?
Ans a. In such circumstances, registering office will issue notice/ summons to the
Executant. If the party does not turn up registering officer will refuse registration.
b. Application may be made to the District Registrar on such refusal to the District
Registrar who will hold enquiry and decide the case. Rs.250 should be paid for such
application.
c. One may submit appeal to the Civil Court if District Registrar also refuses to order
for registration (For details please see Sec.73, 74, 75, 76 & 77 of Registration Act
1908).
Q 31 Who can sign as witness to a document?
Ans Any person, above 18 years of age and not a party to the document may sign as
witness.
Q 32
What is meant by Identifying witness of person presenting/executing a
document?
Ans
In order to identify genuineness of the persons executing the document,
signature of identifying witness are obtained. Without such witness, registering officer
may refuse registration.
Q 33 Who is authorised to write a deed?
Ans
Deed may be personally written by the executant or may be drafted by a
licensed deed writer or advocate.
Ans
1. Any person may obtain certified copy of registered document relating to
immovable property.
2. Certified copy of registered will may be obtained only by the testator only during his
lifetime. Any person may get copy of a will after the death of the testator on
production of death certificate.
3. Copies of registered deed of GPA and other documents relating to movables may be
obtained by executant / claimant or agent, representative of such person only.
Stamp paper of Rs.10 is required to be produced along with the application and
copying fee of Rs.3 for every page of Xerox copy or Rs.5 for every 100 words or part
thereof is to be paid.
Points to be noted by registering public for registration of a document
No. Do's Don'ts
1 Meet registering officer directly for your work Do not depend on middlemen for
your work
2 Pay the fees required to be paid directly to the registering officer and obtain
receipts Do not pay money to the middlemen.
3 Market value of each area is published. Pay stamp duty as per market value
Purchase stamp papers from licensed stamp vendors only. Beware of fake stamp
papers
4 Verify whether date of delivery of the registered deed is written on the receipt. Keep
the receipt securely with you only Don't handover receipt to middlemen.
5 Get information records to be produced for registration in the registry office Don't
go for registration without necessary records.
6 Fee for drafting/writing documents are prescribed. Pay accordingly and obtain
receipts for it Don't pay without receipt. Do not pay fee for drafting and registration
together if demanded. Pay Registration fee directly in the office.
7 Contact higher authorities for any doubts and complaints. Do not conceal your
feelings about the officer or staff. Inform the higher authorities.
8 Obtain registered deeds personally or through registered post. Do not depend on
middlemen for return of document after registration.
9 Note true market value of property Under valuation is an offence.
Q 51 Where can I register my immovable property ?
Ans
Documents pertaining to immovable property shall be registered in the SubRegistrar office in whose jurisdiction the property is situated
Or
If you have any problem with the Sub-Registrar's office please approach the District
Registrar of your district.
In Bangalore Urban district still if you have problem in registration you can visit the
Office of the Inspector General of Registration where your registration work pertaining
to Bangalore Urban district will be attended.
A Gift Deed is a legal document that describes voluntary transfer of gift from donor (owner
of property) to donee (receiver of gift) without any exchange of money. The donor must be
solvent and should not use this tool for tax evasion and illegal gains.
What can be gifted?
Anything which qualifies as gift must have following properties
1.
2.
It must be transferable
3.
4.
It should be tangible.
Drafting the Gift Deed A gift deed is drafted with the help of a lawyer and it
describes what is being transferred and to whom. Gift Deed is a contract between
donor and the donee which defines simultaneous and reciprocal act of giving and
taking. A gift to be valid must be made by a person voluntarily and not under
compulsion without any exchange of money.
2.
Acceptance Acceptance of the gift after its execution is a legal requirement and
Donee must accept the gift during the lifetime of donor. In case donee fails to accept
the gift, it is rendered invalid. The acceptance may be validated by acts such as
taking possession of the property.
3.
Registration As per Section 123 of the Transfer of Property Act, a gift of immovable
property cannot pass any title to the donee unless it is registered. Attestation by two
witnesses is required during registration and post registration, title transfer is
possible.
In case of Minor
Legally speaking person who owns the property can make a gift to any other
person. An exception to this rule is the case in which either of donor or donee is a minor.
Minors are not eligible to contract; therefore they cannot transfer property as a gift. A gift
deed in case of donor being a minor is legally not valid.
In case of donee being a minor, a natural guardian can accept a gift on his behalf.
Guardian acts as a manager of the gifted property, and if the gift is onerous, the obligation
cannot be enforced on donee until he/she is a minor. Once the donee is an adult, he must
either accept the burden or return the gift.
Pros and Cons of Gift deed over Will
Pros
Cons
A gift of immovable property, which is not registered, is bad in law and cannot pass
any title to the Donee. A valid gift of property can be made only by a registered
instrument. According to section 123 of The Transfer of Property Act, it is invalid if a
gift of a property is not registered. Documents should be stamped and registered as
required, and attested by two witnesses. There are some conditions to be met to make
a gift of property valid as specified by the Transfer of Property Act. Following are the
conditions to be met to make a gift of property valid.
1. A transfer of property must be voluntary and made gratuitously.
2. It must satisfactorily appear that the donor knew what he was doing and
understood the contents of the instrument and its effect.
3. Documents should be stamped and registered as required, and attested by two
witnesses.
4. A valid gift of property can be made only by a registered instrument.
5. The Person to whom the property is being transferred (Donee) must accept the
property during the lifetime of the donor. If the Donee dies before accepting the
gift, the gift becomes void.
6. A minor cannot be a donor but can be a Donee. If the property is gifted to a
minor, on behalf of a minor, a natural guardian can accept a gift.
7. If the gift is onerous, the obligation cannot be enforced against him while he is a
minor. But later, he must either accept the burden or return the gift.
An Identical copy of the Gift-deed containing name and details of Donor and
Donee, property Details and property value in the prescribed format of Gift Deed.
Affidavit which state that Registration of this document does not violate the
notification issued under Section 22A of the Registration Act, 1908.
There are some conditions to be met to make a gift of property valid as specified by
the Transfer of Property Act. Any person who is the legal owner of a property can make
a gift of his property but a gift by a minor is void. Following are some points that need
to be considered while drafting a gift deed to make a valid gift of property.
Register Gift Deed: According to section 123 of The Transfer of Property Act,
it is invalid if a gift of a property is not registered. All the required documents should
be stamped and registered. It should be attestation by two witnesses. A gift of
property is invalid without a registration done.
Donee has to accepts the gift: The Person to whom the property is being
transferred (Donee) must accept the property during the lifetime of the donor. A
transaction of gift will be complete, only if the donee accepts the gift during the
lifetime of the donor. If the donee dies before accepting the gift, the gift becomes void.
Gift Deed to Minor: A minor cannot be a donor and a gift by a minor will be
void. If the property is gifted to a minor, on behalf of a minor, a natural guardian can
accept a gift containing a condition that the person nominated in the gift deed will act
as a manager of the gifted property. While a minor may be a donee, if the gift is
onerous, the obligation cannot be enforced against him while he is a minor. But later,
he must either accept the burden or return the gift.
The donee fails to accept the gift during the lifetime of the donor.
A gift of a thing to two or more donees, of whom one does not accept it, is void
as to the interest which he would have taken had he accepted.
Revoking a gift
Section 126 of the Transfer of Property Act provides that a gift may be revoked if the
donor and donee may agree that on the happening of any specified event which does
not depend on the will of the donor a gift shall be suspended or revoked. Such an
event must not depend on the donors will. The condition should not be illegal or
against the estate created under the gift. A gift which was not based on fraud, undue
influence, misrepresentation or an onerous one, cannot be cancelled unilaterally.
Complete absence of monetary consideration is an important prerequisite. The
transfer of property must be voluntary and made gratuitously. It must also
satisfactorily appear that the donor knew what he was doing and understood the
contents of the instrument and its effect. The gift must be an existing property. It
cannot be a future property. Any person who is the legal owner of a property can make
a gift of his property. If the property is gifted to a minor, a natural guardian can accept
a gift containing a condition that the person nominated in the gift deed will act as a
manager of the gifted property.
Do you have to pay Income Tax on Gifts Received ? Rules and Exemptions !
Do you know that, when some one deposits some money in your bank account, what
is its taxation angle ? A lot of people take some loan from their friends for few months
and then return it back, but never think twice about it from taxation angle? Your
parents deposit some money to your bank account because you want to pay the down
payment of your house. While its a help from your parents, have you ever thought if
you have to pay tax on that amount or not?
In this article lets see all the aspects about these kind of transactions, when money
comes and goes out of your bank account and what are the rules for income tax on
gifts received from relatives or other people in India .
Let us first see what kind of situations we are talking about ?
You swiped your credit card for your friend Rs 20,000 purchase and then your
friend paid back money to you by transferring it to your bank account.
You asked Rs 50,000 from your friend as loan and paid him back after 1 month.
Your father transferred some money you your bank account as help for some
purpose.
These are few instances, which happens in our lives. But its very important for you to
understand the tax implications in various scenarios and the possible issues which can
come up in the future, if income tax department decides to scrutinize your income tax
returns for example. By understanding the gift tax rules and precautions to take, you
will be safe. So now, lets look at 5 points which will help you understand rules about
incomes tax on gifts in a better way.
By virtue of Section 56(2), any sum of money exceeding Rs. 50000 received without
consideration by an individual or an HUF from any person is chargeable to tax as
income under other sources subject to some exclusions . Below we are going to see
all those exclusions and gift tax rules.
Your spouse
Important Note that, there is no income tax to be paid on the money received from
relatives, however at times income clubbing provisions may apply, for example, if a
husband gifts Rs 10,00,000 to wife, there is no ta to be paid by wife on Rs 10 lacs
received, however when she invests that money and if any interest income is
generated, it will be clubbed with husband income. Read all about income tax clubbing
rules here.
3. Any amount received as Wedding Gift is not taxable
One of the few advantages of getting married is that any amount you get, as wedding
gift is not taxable in your hands, either from relative or non-relative . So even if you
get Rs 1 crore as wedding gift from someone in your wedding, its not taxable in your
hands.
Lets see some examples Suppose if your spouse parents give you some gift worth Rs 10 lacs on marriage, it will
be treated as a wedding gift and will not be taxed. However, it is not clear by
provision, whether the gifts should have been on the exact date of marriage, or a few
days before or later. Normally, it should be sufficient if the gift is given just on the
occasion of the marriage, means either on the day of the marriage itself or a day or
two before or after. Practical common sense view would prevail in such cases.
If the property is gifted without any consideration then if the stamp duty value
exceeds Rs. 50000/-, stamp duty value will be taken
If the property is gifted for a consideration, then the actual value of the property
will be taken
If gifted without consideration and fair market value exceeds 50,000, then the
fair market value will be taken as the final value
If gifted for a consideration and the Fair Market Value (FMV) less consideration is
greater than 50000, then the FMV less consideration amount will be taken as
the value of the gift.
At times, we ask for money from our friends for some purpose and then give it back.
One of the examples I can give is what I heard from one of the readers in comments
section. He swiped his credit card for a friend for Rs 50,000 and then asked his friend
to pay him back through online banking. Here if you see, the amount came to his
account, however it was a reverse transaction and not actually a gift, so ideally this
transaction should not be considered at all.
If its a small amount and can be justified with proofs, there is not much to worry about
this. But in this case, lets say there is a income tax scrutiny, and tax inspector asks
you about this Rs 50,000 coming to your account. Now You can clearly say that the
money you got from your friend was a amount which you got back because you paid
Rs 50,000 to him through your credit card. But just saying this will not be enough, He
will ask you to prove it. Then you will have to bring your credit card statement, and
prove to him that this was done by you for your friend and no one else.
The point here is no matters how truthful you are, there should be something you
can show to income tax officers in case this is questioned. So for any transaction like
this, which involves a big amount, its always a good idea to have a proof, like in the
example I just gave, the credit card statement will be handy along with a small note,
where you friend signs saying that you swiped your credit card for him and he will pay
back the money through netbanking.
In this same case, If you cant prove that this money was just a reverse entry , you
can imagine the situation. Even if you were clean, the whole amount would be added
to your income and you need to pay income tax based on your tax slabs on the
ground of unaccounted income.
Another point, worth nothing is that just because you have a reverse transaction, the
other party can get into trouble. For example, suppose you give Rs 20 lacs to your
friend, who wanted the money for buying a house and then your friend gives back
those Rs 20 lacs in 3 months. Note that now there is a clear entry that you gave your
friend Rs 20 lacs, so in future income tax department can reach you through your
friend and ask you about this Rs 20 lacs and from where you got so much of money.
They can ask you to justify the source of this money. So always keep these points in
your mind.
How to document Gift transactions, Registered Deed or plain paper?
A gift deed is a deed, that is executed and delivered in which the donor transfers title
to the receiver without any payment or considerations. It a document which transfer
the legal title of the property to the donor, where the consideration is not monetary
but is made in return for love and affection. There is indistinctness with respect to
compliance of the gift deed at times, Whether a gift deed is required to be made in
every circumstance
When it is required to be stamped OR get registered?
Gift made by way of cash or cheque does not mandatory requires to be executed
through a gift deed. Writing a plain typed note on a paper will generally suffice. It is
not required to be stamped and registration is also not needed. You may
simply mention the names of persons, their relation and that the gift is being given
out of love and affection.
Gift made by way of movable property is required to be made in stamp paper and
stamped by the notary or court, and registration of gift deed is not required in this
case. For the purpose of making a gift of immovable property, the transfer must be
effected by a registered instrument signed by or on behalf of the donor. Gift of
immovable property which is not registered is not valid as per law and cannot pass
any title to the receiver.