Understanding the Concept of Gift: Essentials, Deed, and Legal Implications

Gift: An Overview

1. Introduction

A gift is the voluntary transfer of existing movable or immovable property from one person (the donor) to another (the donee) without any consideration. Gifts can be revoked under certain circumstances.

2. Relevant Provisions

Sections 122 and 123 of the Transfer of Property Act govern the transfer of property through gifts.

3. Definition of Gift

A gift is the voluntary and gratuitous transfer of existing movable or immovable property from a donor to a donee, who accepts the gift or has it accepted on their behalf.

4. Essentials of a Valid Gift

1. Parties: Donor and donee
2. Subject Matter: Movable or immovable property
3. Existing Property: Property must exist at the time of the gift
4. Consideration: No consideration should be involved
5. Voluntarily: The transfer must be made voluntarily
6. Acceptance: The gift must be accepted during the donor's lifetime

Gift Deed

A gift deed is a legal document that records the transfer of a gift. It is executed between the donor and the donee.

Drafting a Gift Deed

The gift deed should clearly state that the transfer is voluntary and made without any coercion. It should also declare that the donor is solvent and that the gift is made without any consideration.

Acceptance of Gift

The donee's acceptance of the gift is recorded in the gift deed through their signature and by taking possession of the gift. Acceptance must occur during the donor's lifetime.

Registration of Gift Deed

Gifts involving immovable property must be registered under the Transfer of Property Act. Registration is necessary for the transfer of title to the donee.

Points to Note

1. Minors cannot enter into valid gift deeds. Their guardians can accept gifts on their behalf.
2. Gifts cannot be revoked once made.
3. Gifts to relatives defined by the Income Tax Act are exempt from tax in the hands of the donee.

Conclusion

A gift is an unconditional transfer of property made without any exchange or consideration. It is important to understand the essentials of a valid gift and the legal implications of gift deeds to ensure the proper transfer of property.