ACKNOWLEDGEMENT

Thanks to the Almighty who gave me the strength to accomplish the project with sheer hard work and honesty. I
would like to sincerely thank my faculty for DPC Mrs. Shakuntla Mam for giving me this topic and guiding me
throughout the project. Through this project I have learned a lot about the aforesaid topic and this in turn has
helped me grow as a student. My heartfelt gratitude also goes out to the staff and administration of RMLNLU for
the infrastructure in the form of our library and IT lab that was a source of great help in the completion of this
project.
- Margaret Rose
 TABLE OF CONTENTS
Acknowledgement...................................................................................................................
Introduction ................................................................................................................................
CHAPTER 1: GIFT ................................................................................................................
CHAPTER 2: GIFT DEED ....................................................................................................
When a Gift Deed is made .................................................................................................
Contents of Gift Deed ........................................................................................................
Charges for a Gift Deed .....................................................................................................
Revocation of Gift Deed ....................................................................................................
Points to be considered while drafting a Gift Deed ...........................................................
Steps in gifting process ....................................................................................................
Facts of Gift Deed to be drafted .......................................................................................
CHAPTER 3: DRAFT GIFT DEED ...................................................................................
References ................................................................................................................................
Acts/Statutes ........................................................................................................................
Books ...................................................................................................................................
Websites ...............................................................................................................................
 INTRODUCTION
Gift is a Transfer of Property and is defined in Section 122 of the Transfer of Property Act, 1882. It is a unique
transfer of property in the sense that it involves no consideration. The basic essence of a gift is the complete
absence of consideration. The law of gifts in India is governed by Sections 122 to 129 of the Transfer of Property
Act, 1882. The right to gift away ones property whether movable or immovable is an important right and an
important element of property law. Although a gift involves no consideration in the legal sense it involves the
consideration of love, affection, spiritual and religious benefit etc. whose importance cannot be overlooked. Thus
the law relating to gifts has a humane element in it and as such the law of gifts should be clear and unambiguous
without any scope for misuse and controversy. This objective might be idealist but ultimately the law relating to
gifts should always strive to protect the interests of the donee, donor and the property involved in the greater
interests of justice. A gift is a common mode of transfer of property. It is the transfer of certain existing moveable
or immoveable property by one person to another. The transfer should be made voluntarily and without
consideration. The person transferring the property is called the donor. The person to whom the property is
transferred is referred to as the donee. The donee must accept the property during the lifetime of the donor and
while he is still capable of giving. In case the donee dies before acceptance, the gift is void. The gift can be
effected through a gift deed. A gift deed is a legal document that records and details transfer of movable or
immovable property from the donor (giver) to the donee (receiver) without any exchange of money. The “gift”
must be a well defined movable or immovable property and be transferable. The deed should be based on the
consideration of natural love and affection of the Donor to the Donee. The donor in the gift deed must be solvent
and should not use this arrangement for illegal gains or tax evasion. Transfer of property, specially an immovable
one, needs to be documented in accordance with the Transfer of Property Act, 1882 in India and must fulfill the
conditions laid out. Registration of the gift deed for an immovable property is mandatory and must be done with
the Sub-Registrar in the area where the property is situated.
 CHAPTER 1: GIFT
"Gift" is the transfer of certain existing moveable or immoveable property made voluntarily and without
consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the
donee. Such acceptance must be made during the lifetime of the donor and while he is still capable of giving. If
the donee dies before acceptance, the gift is void. The conception of the term "gift" as used in the Transfer of
Property Act is somewhat different from the use in Mohammedan law. In the Mohammedan law a gift is a
transfer of property or right by one person to another in accordance with the provisions given in the
Mohammedan law and includes-
a. A hiba, an immediate and unconditional transfer of the ownership of some property or of some right, without
any consideration or with some return (ewaz); and

b. An ariat, the grant of some limited interest in respect of the use or usufruct of some property or right.

Where a gift of any property or right is made without consideration with the object of acquiring religious merit, it
is called sadaqah. The terms "hiba" and "gift" are often indiscriminately used but the terms "hiba" is only one of
the kinds of transactions which are covered by the general term "gift". A hiba is a transfer without consideration.
A gift by a Muslim in favour of his co-religionist must be under the Mohammedan Law. A gift is not a contract
(though in Muslim law it is called a contract) but the principle may be applicable even to gift. In ordinary legal
effect, there cannot be a `gift' without a giving or taking. The giving or taking are two contemporaneous,
reciprocal acts, which constitute a gift. Section 122 of the Act postulates that a gift is a transfer of certain existing
movable or immovable property made voluntary and without consideration by one person called the donor, to
another, called a donee and accepted by or on behalf of the donee. The essential elements of a gift are:
a. The absence of consideration;

b. The donor;

c. The done

d. The subject-matter;

e. The transfer; and the acceptance.

The concept of gift is diametrically opposed to any presence of consideration or compensation. In order to
constitute a valid gift, the pivotal requirement is acceptance thereof. No particular mode of acceptance is required
and the circumstances throw light on that aspect. A transaction of gift in order to be complete must be accepted
by the donee during the lifetime of the donor. Factum of acceptance can be established by different circumstances
such as donee taking a property or being in possession of deed of gift alone. If a document of gift after its
execution or registration in favour of donee is handed over to him by the donor whom he accepts, it amounts to a
valid acceptance of gift in law. The specific recital in the deed that possession is given raises a presumption of
acceptance.
 CHAPTER 2: GIFT DEED
Under section 122 of the Transfer of Property Act, 1882, one can transfer immovable property through a gift
deed. Like a sale deed, a gift deed contains details of the property, the transferor and recipient. But instead of a
sale consideration in a sale deed, a gift deed allows one to transfer ownership without any exchange of money.
Registering a gift deed with the sub-registrar is mandatory as per section 17 of the Registration Act, 1908, and as
per section 123 of the Transfer of Property Act. If one don‟t do this, the transfer will be invalid. Besides that,
once a gift deed is registered in the name of the recipient, only then one can apply for mutation of the property.
Mutation is necessary to transfer utility connections in the name of the recipient. Also, for the recipient to be able
to further transfer the property, a registered gift deed will be required.
When a Gift Deed is made
A Gift deed can be made in the following circumstances:
1. At the time of transferring the rights of property as a gift.

2. When there is no exchange of money involved.

3. To provide a legal representation to the gift being transferred.

Contents of Gift Deed
A gift deed should contain following details:
1. Details of the donor and done.

2. Relationship details of the donor with the donee.

3. Rights & power and authority of the Donor.

4. Description and details of the property to be gifted.

5. Confirmation clause on delivery of possession.

Charges for a Gift Deed

Stamp duty and registration fee has to be paid to register a gift deed. In some states, stamp duty rates for property
transfer by way of gift are the same as for sale or conveyance deed. However, rules vary across states; certain
state governments even offer some concession if the property is being gifted to blood relatives.
Revocation of Gift Deed Section 126 of the Transfer of Property provides for conditions where a gift may be
revoked. The following are those conditions-
1. That the donor and donee must have agreed that the gift shall be suspended or revoked on the happening of a
specified event;

2. Such event must be one which does not depend upon the donor's will;

3. The donor and donee must have agreed to the condition at the time of accepting the gift; and
4. The condition should not be illegal or immoral and should not be repugnant to the estate created under the gift.
Section 126 is controlled by Section 10. As such, a clause in the gift deed totally prohibiting alienation is void in
view of the provisions contained in Section 10. A gift, which was not based on fraud, undue influence or
misrepresentation nor was an onerous one, cannot be cancelled unilaterally. Such a gift deed can be cancelled
only by resorting to legal remedy in a competent court of law.
Points to be considered while drafting a Gift Deed
To make a valid gift of property The donor is the person who gives. Any person who is competent to contract
can make a gift of his property. A minor, being incompetent to contract is incompetent to transfer. A gift by a
minor is void. However, a minor can accept gifts. A natural guardian can accept a gift on behalf of a minor with
the condition that the person nominated in the gift deed will act as a manager of the gifted property. Such
acceptance would amount to recognition by the natural guardian of the nominated person as the manager or the
agent of the minor for the purpose of the property. For a valid acceptance The donee is the person who accepts
the gift. A minor may be a donee. But if the gift is onerous, the obligation cannot be enforced against him while
he is a minor. But when he attains adulthood he must either accept the burden or return the gift. A gift may be
accepted by or on behalf of a donee. A donee may also be a person who is unable to express acceptance. A gift
can be made to a child and could be accepted on the child's behalf. The donee must be an ascertainable person.
Process of gifting A gift involves the process of giving and taking which are two simultaneous and reciprocal
acts. There must be acceptance of a gift as well. There is no particular mode of acceptance. It may be express or
implied. Further, the property must be accepted by the donee during the lifetime of the donor. The fact of
acceptance can be established by different circumstances such as donee taking the property or being in possession
of the deed of gift. If a document of gift, after its execution or registration in favour of a donee is handed over to
him by the donor, it amounts to a valid acceptance of the gift. 10 Gift Deed
Competence to contract is an important qualification required for making a gift. A gift to be valid must be made
by a person with his free consent and not under compulsion. However, a mere weakness of the intellect would not
be sufficient to invalidate the gift. The gift must be a certain existing movable or immovable property. It may be
land, goods, or actionable claims, and must be transferable. There cannot be any gift of future property. A gift
must be of tangible property. Only an existing and tangible property is capable of being gifted. Absence of
consideration must A gift is a transfer without any element of consideration. Complete absence of monetary
consideration is an important prerequisite. Where there is any equivalent of benefit measured in terms of money
in respect of a gift, the transaction ceases to be a gift. The transfer of property must be voluntary and made
gratuitously. It must satisfactorily appear that the donor knew what he was doing and understood the contents of
the instrument and its effect, and also that undue influence or pressure was not exercised upon clear intention to
make a gift. Acceptance Even when a gift is made by a registered instrument, it has to be accepted by or on
behalf of the donee to make it complete, failing which the gift will be void. The law requires acceptance of the
gift after its execution, though the deed may not be registered. The acceptance may be signified by an overt act
such as the actual taking of possession of the property, or such acts by the donee as would in law amount to
taking possession of the property where the property is not capable of physical possession. Delivery of possession
is an essential condition for the validity of the gift. However, it is not necessary that in every case there should be
a physical delivery of possession. Possession may be either actual or constructive. The donor should divest
himself completely of all ownership and dominion over the gift. Registration
A gift of immovable property can be made only by a registered instrument. A gift of immovable property, which
is not registered, is bad in law and cannot pass any title to the 11 Gift Deed
donee. Documents should be stamped with appropriate non judicial stamp, registered as required under the India
Registration Act and attested by two witnesses. A mere delivery of possession without a written instrument
cannot confer any title. A deed cannot be dispensed with even for a property of small value.
Steps in gifting process
Gifting process can be subdivided into three parts as described below:
1. 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.

Facts of Gift Deed to be drafted

Brief facts of gift deed are as follows:
1. Details of donor: Shri Mahendra Kumar Gupta, aged 63, years, S/o, Late Shri P.C. Gupta, Residing at 119,
Chandela Vihar, Bilaspur

2. Details of donee: Shri Kunal Gupta, aged 35 years S/o Shri Mahendra Kumar Gupta Residing at 119, Chandela
Vihar, Bilaspur

3. Details of gift: Kothi No. 65, Ring Road, Bilaspur situated approximately on 2 acres of land

4. Reason for Gift: The gift has been made as the donor has immense love and affection for the donee as donee is
his most beloved son.
12 Gift Deed
 CHAPTER 3: DRAFT GIFT DEED
GIFT DEED THIS DEED OF GIFT is made at Bilaspur this 15th day of February 2016 between Mr. Mahendra
Kumar Gupta, aged 63, years, S/o, Late Mr. P.C. Gupta, Residing at 119, Chandela Vihar, Bilaspur hereinafter
referred to as „the Donor‟ of the One Part and Mr. Kunal Gupta, aged 35 years S/o Mr. Mahendra Kumar Gupta
Residing at 119, Chandela Vihar, Bilaspur hereinafter referred to as „the DONEE‟, of the Other Part. WHEREAS
the Donor is seized and possessed of the land and premises situate at Kothi No. 65, Ring Road, Bilaspur situated
approximately on 2 acres of land and more particularly described in the Schedule hereunder written. AND
WHEREAS the DONEE is related to the Donor as his Son. AND WHEREAS the Donor desires to grant the said
property 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 is estimated to be Rs. Eighty Five Lacs Only.
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 property situate at Kothi No. 65, Ring Road, Bilaspur and more particularly described in the Schedule
hereunder written together with all and singular the building, 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.
both hereby covenants with the DONEE; (a) That the Donor now has in himself, good right, full power and
absolute authority to grant the said property 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 property
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 property is 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. 14 Gift
Deed
THE SCHEDULE ABOVE REFERRED TO Signed and Delivered by the within named Donor Mr. Mahendra
Kumar Gupta in the presence of ……. Signed by within named DONEE Mr. Kunal Gupta In the presence of
……. WITNESSES: 1. ------------------------ 2. ------------------------ 15 Gift Deed
 REFERENCES
Acts/Statutes
1. Registration Act, 1908

2. Transfer of Property Act, 1882

Books
1. ODGERN’S ON DRAFTING AND PLEADING, 3rd EDITION (2008) UNIVERSAL PUBLICATION, NEW
DELHI

Websites
1. http://articles.economictimes.indiatimes.com/2009-06-07/news/27647546_1_gift-deed-gifted-property-donee

2. http://www.legalserviceindia.com/articles/transfer.htm

3. http://legalsutra.com/837/gifts-under-transfer-of-property-act/

4. http://www.livemint.com/Money/PYvt8NpP8AXnea8nKAn9FI/For-a-transfer-of-property-through-gift-deed-
to-be-valid-it.html

5. http://taxguru.in/income-tax/faq-performa-gift-deed-list-relatives-gift-received-tax-liability.html