Things to know when making a gift deed (Policy Matters S01E142)

https://www.magicbricks.com/ https://bit.ly/2Qva9XG Property could be gifted to somebody; also, anybody could accept the property as a gift. A gift deed is a document that records the act of giving a gift and is executed between the donor and the donee. A donor is a person who gives the gift, and donee is the person who receives the gift. A donor should not use this tool for tax evasion and illegal gains and a benami property should not be used for gifting. The property title should be clear. After checking all these, a property can be gifted to anyone. The donor should declare the source of property purchase. Property valuation is a must for gifting. Important things to keep in mind while making a gift deed: Approved valuation experts should carry out the valuation of the property and calculation of stamp duty. After calculation, the registration process will start, and the donee’s rights will be established. Liability of tax is on the donee, after full execution. The gift deed should be registered under the Transfer of Property Act. Gift deed and Will are different. If the gift deed is not registered during the person’s lifetime, then whatever flows from the gift deed becomes invalid after the person’s death. The title passes on to the done only on registration of the gift deed. A gift deed cannot be contested, whereas a ‘Will’ can. A gift, once made, cannot be revoked. The property will be passed down to the person named in the Will by the donee. In case of the donee’s death, if s/he has not registered the property, it will return to the donor. Once the donee registers the gift, he can put it in his Will. A donee should accept the gift till the donor is alive. A gift of property worth over INR 50,000 to an NRI is taxable. If the NRI is a relative, then there is no tax liability. In India, gifting is taxed as per the normal slab rates applicable to resident Indians. An NRI can also gift property in India to anyone within the family. Gifting to anyone outside the family is taxable. Legal help is there in case of a conflict between donor and donee. Once the gift deed is registered, it cannot go back to the donor without the donee’s consent. There is no limitation on gifting property, and the donee should accept the gift in the donor’s lifetime. Otherwise, the gift deed will lapse. Registration of gifts is also important. For more information Gift Deed - Registration, Format and all you need to know https://www.magicbricks.com/blog/gift... Gift Deed Registration - Everything you need to know https://www.magicbricks.com/blog/gift...