Gift Deed Format In India

The Transfer of Property Act of 1882 talks about transfer of a movable or immovable property by way of
a gift. Section 122 of the said Act defines Gift as the transfer of certain existing property (movable or
immovable), of which transfer is made voluntarily i.e. without any coercion or duress of any form and
there is involved no question of any consideration whatsoever, but only natural love and affection.

The person so transferring the property through a Gift Deed is known as the Donor and the person
accepting such transfer is known as the Donee.

It is pertinent to mention here that the donee must accept the gift within the lifetime of the Donor and
while the Donor is still in a position to give, meaning thereby that he shouldn’t be an insolvent. And in
case the donee happens to die before accepting such a gift, then the gift shall be deemed as void. Read
further to know about the gift deed format, registration procedure as well as the important points to be
included in a gift deed.

How Can An Immovable/Movable Property Be Transferred By Way Of Gift?

The Act enumerates the procedures as to how an immovable property can be transferred by way of a
gift. A transfer can be effected by way of a registered instrument which needs to be signed by the donor
and also attested by a minimum of two witnesses.

For the transfer of movable property by way of a gift, it can be effected by way of a registered
instrument like in the case of immovable properties or by delivery, in a manner that is similar to how
normal goods that are sold are delivered. A gift can only be of an existing or present property and not of
any future property.

Registration of Gift Deed

Section 17 (1) (a) of the Registration Act of 1908 makes it necessary for all instruments of gifts of
immovable property to be registered with the sub-registrar of the area where the whole property or a
part of it is situated within 4 months from the date of execution. A document shall come into effect from
the date it was executed and not the date on which registration took place.

Non registration of a gift deed would lead to no title over the property being transferred. The gift deed
which is not registered will not be deemed valid in the eyes of law and wouldn’t even be admissible as
evidence.

Hence, mere execution of a gift deed is no good. Until and unless it is duly registered, there will not be
any transfer of title or interest over the property to the donee, and the donor would continue being the
owner of the property.

What Goes Into A Proper Gift Deed?

An immovable property can be transferred by way of a gift only by a written document known as a gift
deed. Following are the things that go into a properly drafted Gift Deed :
Absolute Absence of Consideration – The gift deed needs to mention that the donor is transferring his
property by way of gift out of natural love and affection and ther is involved no monetary consideration.
There should be absolutely no element of consideration involved. The transfer shall cease to be a gift if
this important aspect of no consideration is not met.

No Coercion – The transfer should be voluntary and it should not be out of fear, undue influence,
misrepresentation, coercion or duress of any kind. It should be gratuitous. The donor must have clear
intention to make a gift and should be well aware of the consequences that will ensue once the transfer
is effected.

Donor, The Owner Of The Property – Nobody can transfer a better title than he himself has. At the time
of transferring of the property by way of a gift, the donor should be the actual owner who is seized and
possessed of the property, the property should be existing, gift of a future property is not admissible. He
should also be the one paying taxes and levies accruing on the scheduled property.

Description of the Property – A gift deed should provide a proper description of the property that is
being transferred eg: area, built up area, address where the property situated etc.

Additional Rights – This includes all rights, liabilities, easementary rights that are appurtenant to the
property in question.

Relationship between the Donor and the Donee – This clause needs to mention as to how the donor is
related to the donee, whether by blood or otherwise.

Donee’s Rights – The gift deed should clearly mention the donee’s rights to possess, occupy and enjoy
the property. The donee also has the right to accrue rent, profits etc and the donee shall have the right
to use the property for his/her own use and it should be free from all legal actions, lawsuits whatsoever
by the donor or any of his heirs , assigns etc.

Delivery of Possession – Delivery can be express or implied and some affirmative act needs to take place
for it to constitute delivery. Donee should be given the vacant and peaceful possession of the gift
property. All liabilities, taxes, penalties, levies etc need to be borne by the donor till the possession is
given to the donee. After which all these will be borne and discharged by the donee.

Stamp Duty Assessment – The value of the property in question should be ascertained for the purpose
of ad valorem stamp duty.

Witnesses – The gift deed needs to be executed in the presence of at least two witnesses.

A gift deed needs to be duly accepted by the donee. Acceptance suggests that the donee has accepted
the gift wholly and unconditionally. If the gift is not accepted by the donee, the gift will become void.
The donee must accept the gift after it is executed even before it is registered.
THIS DEED OF GIFT is made at …….. this …….. day of.. ….. between Mr. A of ……. hereinafter
referred to as ‘the Donor’ of the One Part and Mr. B of ……. hereinafter referred to as ‘the DONEE’, of
the Other Part.

WHEREAS the Donor is seized and possessed of the land and premises situate at ……… and more
particularly described in the Schedule hereunder written.

AND WHEREAS the DONEE is related to the Donor as ……..

AND WHEREAS the Donor desires to grant the said land and premises to the DONEE as gift in
consideration of natural love and affection as hereinafter mentioned ‘

AND WHEREAS the DONEE has agreed to accept the gift as is evidenced by his executing these
presents.

AND WHEREAS the market value of the said property his estimated to be Rs …..

NOW THIS DEED WITNESSETH that the Donor without any monetary consideration and in
consideration of natural love and affection, which the Donor bears to the DONEE, doth hereby grant
and transfer by way of gift the said land and premises situate at ….. and more particularly described
in the Schedule hereunder written together with all and singular the buildings, and structures.
thereon and all the things permanently attached thereto or standing thereon and all the liberties,
privileges casements and advantages appurtenant thereto And all the estate, right, title, interest use,
Inheritance, possession. benefit, claims and demand whatsoever of the Donor To Have And To Hold
the same unto and to the use of the DONEE absolutely but subject to the payment of all taxes, rates,
assessments, dues and duties now and hereafter chargeable thereon to the Government or
Municipality or other Local Authority.

AND the Donor doth hereby covenants with the DONEE;

(a) That the Donor now has in himself, good right, full power and absolute authority to grant the said
piece of land and other the premises hereby granted as gift in the manner aforesaid.

(b) The DONEE may at all times hereafter peaceably and quietly enter upon have occupy. possess
and enjoy the said piece of land and premises and receive the rents, Issues, and profits and rents
thereof and every part thereof to and for his own use and benefit without any suit, lawful eviction,
interruption, claim or demand whatsoever from or by the Donor or his heirs, executors,
administrators and assigns or any person or persons lawfully claiming or to claim by, from, under or
in trust for the Donor.

(c) That the said land and premises are free and clear and freely and clearly and absolutely and
forever released and discharged or otherwise by the Donor and well and sufficiently saved, kept
harmless and Indemnified of and from and against all former and other estate, titles, charges and
encumbrances whatsoever, had made, executed, occasioned or suffered by the Donor or by any other
person or persons lawfully claiming or to claim by. from, under or in trust for the Donor.

(d) AND FURTHER that the Donor and all persons having or lawfully claiming any estate or Interest
whatsoever to the said land and premises or any part thereof from under or in trust for the Donor or
his heirs, executors. administrators and assigns or any of them shall and will from time to time and
at all times hereafter at the request and cost of the DONEE do and execute or cause to be done and
executed all such further and other acts, deeds, things, conveyances and assurances in law
whatsoever for better and more perfectly assuring the said land and premises and every part thereof
unto and to the use of the DONEE in the manner aforesaid as by the DONEE, his heirs, executors,
administrators and assigns or counsel in law shall be reasonably required.

IN WITNESS WHEREOF the Donor as well as the DONEE (by way of acceptance of the said gift)
have put their respective hands the day and year first hereinabove written.

THE SCHEDULE ABOVE REFERRED TO

Signed and Delivered by the withinnamed Donor …….. in the presence of …….

Signed by withinnamed DONEE …….. In the presence of …….

1……………

2……………