A gift of property, whether movable or immovable, is a popular way to convey love and affection and to pass on wealth within the family. In a gift deed, a mere statement of acceptance from the donee does not make the gift a legally valid one, particularly of an immovable property like land or house, unless it is also duly executed and registered. Under the influence of technology, several states in India have started offering gift deed registration online, so it can be processed quickly and easily. This guide will help you register a gift deed online, including the requirements, the procedure, and some other important points to keep in mind.
What is a Gift Deed?
The gift deed is a receipt of gift or contract, containing the details of the transfer of property or goods from one party to another voluntarily (without any consideration) and without any exchange of money. It also has to be accepted by the donee during the lifetime of the donor. A gift deed is a written document as well that provides evidence of possession and assures the interests of both the donor and the donee.
Legal Validity of a Gift Deed
Immovable property transfer by way of gift needs a written document (registered) referred to under section 122 of the Transfer of Property Act, 1882. An unregistered gift deed is not valid, equitable, or worth anything in the eyes of the law.
Why is it Necessary to Register a Gift Deed?
- Establishing Legal Ownership: It is the deed for registering a gift, which is essential to create a title in the donee’s favor. It is evidence of ownership and also prevents ownership disputes.
- Protecting the Interests of Donors and Donees: An unregistered gift deed results in no proof of the transfer of property, thereby leaving both the donor and the donee at the mercy of the other, but a registered gift deed records the transfer transparently and with consensus, protecting the rights of the donor as well as the donee.
- Avoiding Future Disputes: Once a gift deed is recorded, it is public. This prevents third-party claims or disputes over the property in the future.
Drafting the Gift Deed
The most important task in registering a gift deed online is to prepare the right gift deed document. The donor and donee, the relation between the parties, a full description of the property, and that the gift is made out of love and affection, without any exchange or consideration, need to be stated in the deed.
It’s best to have the gift deed prepared by a lawyer who will ensure that the clauses are properly included and that the document will also be legally valid.
Stamp Duty and Registration Charges
In India, the stamp duty and registration charges are different for every state. In some states, stamp duty is lower for gifts made to family members. Before starting the online application, go through the rates and keep the adequate amount of Relaxation fee to be paid by the candidate during the registration process.
Procedure for Registering a Gift Deed Online
Step 1: Go to the State Registration Department
There is a separate Registration Department portal for each state from where property registrations such as gift deeds can be started. You are to go to the official website of the Registration and Stamps Department of your state.
Step 2: Enter the Necessary Details
You will find on the portal a facility to get property registered on the deed. Then, select the correct option for gift deed registration and fill in the required details, such as the names of the donor and donee, property description, market value of the property, and location.
Make sure all the data you enter corresponds to your supporting documents to avoid rejections or slowdowns.
Step 3: Stamp Duty Calculation and Payment Online
The vast majority of state portals have a stamp duty calculator. You can use it to compute the relevant stamp duty and registration charges. On completion of the calculation, the portal will take you to the payment gateway to pay the charges online. An acknowledgment receipt will be sent to you after the payment.
Step 4: Submit the Necessary Documents
The portal will also ask for scanned documents such as identity proofs of the donor and the donee, property documents like the title deed and the gift deed made, and proof of payment made for the stamp duty.
Originals should be legible when received by the authorities.
Step 5: Schedule Physical Verification
Although the first few steps are completed via the internet, physical verification is necessary. You would need to schedule an appointment from the portal for the Sub-Registrar’s office in order for the donor and donee to be present along with two witnesses.
Simply select the date and time that best suit you and click now to book!
Step 6: Go to the Sub-Registrar’s Office
On the fixed appointment, both parties with 2 witnesses, will have to appear before the Sub-Registrar’s office with original documents. During her visit, biometric details, photographs and signature are taken.
The Sub-Registrar registers the gift deed in the presence of witnesses once the verification is successful and entered.
Step 7: Take Delivery of the Registered Gift Deed
You will receive a receipt from registration. You will receive the registered gift deed document, which can be emailed to your registered email, or it will be available for download from the state registration portal, the government said. Physical copies are additionally available at the office in some states.
Documents Required for Online Gift Deed Registration
- Identity Proof: Aadhaar Card, PAN Card, Passport, Voter ID of donor and donee are mandatory.
- Property Documents: Documents evidencing ownership, such as title deeds and this year’s tax receipts.
- Drafted Gift Deed: A gift deed must be correctly written and executed.
- Passport-size Photographs: We need pictures taken recently of both the donor and the donee while registering.
- Witness Identity Proofs: Identity cards of at least two witnesses present at the place of registration should also be submitted.
Key Points to Remember
- Acceptance by Donee: Acceptance of the gift has to be made by the donee during the lifetime of the donor.
- No Revocation Clause: A registered Gift Deed cannot be revoked except with the consent of the Donee, which means that, if at all, there is a revocation clause in the deed.
- Tax Implications: However, gifts to non-relatives, to some extent above a certain limit, are liable to income taxation.
- Relationship Matters: In some states, there are concessional stamp duty rates when a gift is made to specific relatives of the donor, such as spouses, children, siblings or parents.
Conclusion
Online gift deed registration is an easy, transparent, and time-saving way to transfer a property by way of gift. Even though the online step makes things better for you, the people will still need to be physically present at the Sub-Registrar’s office, as the due process for completing the registration is still in place. Knowing the legal requirements of your state, completing the correct paperwork, and keeping everything in line with the court’s process will make your gift deed registration stress-free and binding. So, follow the proper steps and you can ensure the transfer is a sound one that comes without any future problems.
