Every transaction happening around us today has some legal impact. In the developed system there is a systematic way to recognize and record a lot of unilateral and bilateral transactions. A Gift Deed is a legal document that describes voluntary transfer of gift from owner of property to receiver of gift without any exchange of money. The owner of property is called donor and the receiver of the property is called Donee. A person who wishes to gift something i.e The donor, must be solvent and should not use this tool for tax evasion and illegal gains.
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.
The gift to be given can be tangible or intangible property, well defined movable-immovable property, transferable and should be in existence. 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.
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. Possession of the gift is an act which implies the acceptance.
As per the provisions of the Registration Act, 1908, registration involves: