A Gift Deed is a legal document used in India to voluntarily transfer ownership of movable or immovable property from one person (the donor) to another (the donee) without any exchange of money or compensation. This transfer is made out of love, affection, or goodwill and is commonly used within families to pass on property, cash, shares, or other assets.
Under Indian law, a Gift Deed must be signed by the donor and accepted by the donee during their lifetime. For immovable property, the deed must be registered with the local sub-registrar and appropriately stamped, as per the Indian Registration Act, 1908. Once registered, it becomes legally binding and irreversible unless proven otherwise in court.
For tax compliance, it’s important to note that gifts received by individuals may be taxable under the Income Tax Act, 1961 if the total value exceeds ₹50,000 in a financial year, unless received from a close relative or on specific occasions like marriage. Businesses and professionals must also disclose any high-value gifts received, as these can impact income tax filings.
A well-drafted Gift Deed ensures transparency, avoids future disputes, and serves as proof of ownership transfer. Whether you’re transferring property to a family member or gifting an asset for estate planning, it's advisable to document the transaction formally.
To ensure compliance with Indian tax laws and avoid any unintended liabilities, individuals and businesses can consult expert support. Learn more about how gifts are taxed and how to handle such transactions properly by visiting FinTax24’s income tax solutions.