More Related Content Similar to An Introduction to Gift Deed by Shraddha Pandit (20) More from SHRADDHA PANDIT (13) An Introduction to Gift Deed by Shraddha Pandit1. GIFT DEED
ADV. SHRADDHA PANDIT
BA, LLB, LLM, SET, Diploma in German,
Post Graduate Diploma in IPR, AIBE, Pursuing Ph.D. in
Law
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2. SOME BASIC RULES
Keep mobile phones away, unless you are asked to check some provision of
law (that includes laptops, tablets, etc.)
You need not take screenshots of the slides as I will be sharing them after
completing the portion/topics
You need to refer to a variety of resources that are Bare Acts, reference
books, research papers, etc. and not just these PPTs.
You have to interact in the class to know more.
Let us not just GO through the syllabus, but GROW through the syllabus!
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3. Definition as per TOPA, 1882
Section 122 in The Transfer Of Property Act, 1882
“Gift” defined.— “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.
Acceptance when to be made.—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.
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4. BENEFITS
A gift deed allows the property owner to gift the property to anyone and avoids any
future dispute arising out of succession or inheritance claims. A registered gift deed
is also evidence in itself.
It can be a moveable or immovable property that is gifted voluntarily.
The donor must be financially stable and must not utilise this method to evade taxes
or make unlawful gains. A gift that costs more than Rs. 50,000 is taxable in the
recipient's hands. Gifts from close family members such as spouse, children, parents
or during a marriage, however, are not subject to taxation.
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5. The difference between a Gift and a Sale is
that the former does not require payment of
money or consideration on acquiring a
property but that is mandatory for the latter.
Gift has to be between near family or relatives.
But, sale can be between anyone even
strangers.
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6. Provisions in Indian Contract Act, 1872
Section 25 lays down certain important exceptions to void contracts due to
lack of consideration - Out of natural love and affection –
An agreement made without consideration is void, unless –
1) it is expressed in writing and registered under the law for the time being in
force for the registration of 1[documents], and is made on account of natural
love and affection between parties standing in a near relation to each other ;
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Thus, gift is a transaction / transfer of property out of natural love and affection between family
members.
However, it should be notes that both the donor and done should be competent to contract, i.e. both
must be of sound mind and must be major (not minors, not alien enemies, not insolvent, intoxicated)
and should give free consent (not induced by fraud, coercion, undue influence, mistake or
misrepresentation)
9. Important contents of the deed of gift
Details of Name, Age, Address and Relationship of the donor and/ with the donee.
Rights & power and authority of the Donor.
Description and details of the property to be gifted.
Confirmation clause on delivery of possession.
Mention if any third party is staying in the property, which is subject matter of the gift,
as a lessee/ tenant or has any easementary rights
Schedule to the property
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11. Other documents required:
Adhar and Pan cards
Encumbrance certificate / Title documents /Declaratory Decree
Statement of particulars of the property at the time of registration/ Map
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12. Remember!
A gift can be only of specific present/ exisiting property and not future
property.
A registered gift deed cannot be cancelled or revoked. However, one can
seek legal remedy if the deed was executed by coercion or undue influence
on either of the parties. This process can be painful and cumbersome as this
will be contested in a competent court.
An unregistered gift deed can be revoked as it holds no validity.
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13. Universal Donee
When the whole property is transferred, donee becomes liable for all the
debts and liabilities, in respect of the gifted property, incurred by the donor
at the time of transfer of property rights. Such a universal donee.
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14. FURTHER READING!
List of books to refer (you can find more detailed notes and model drafts in these books as
well):
Transfer of Property Act - With Model Forms of Sale Deed, Agreement to Sell, Mortgage,
Lease Deed, Gift Deed, Partition Deed, Assignment of Actionable Claim etc., by Sanjiva
Row, 9th edition, Lexis Nexis
Drafting, Pleading and Conveyancing by Dr. S. R. Myneni, Asia Law House, Hyderabad
Lectures on Drafting, Pleading and Conveyancing by Dr. Rega Surya Rao, Asia Law House,
Hyderabad
Drafting, Pleading, Conveyancing & Professional Ethics By Noshirvan H. Jhabvala, C.
Jamnadas & Co., Mumbai
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15. Acknowledgements
Firstly, I would thank my family for its
constant support.
I would also love to thank PGCL for giving me
this wonderful opportunity.
Last, but not the least, I would thank all my
wonderful students for making this session a
huge success!
All the best!
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16. CONNECT TO ME ON THESE!
Linkedin: www.linkedin.com/in/shraddha-pandit-1267591a6
ORCID ID: https://orcid.org/0009-0008-3669-5883
Lawteachers.in: https://law-teachers.in/law-teachers-details.php?id=392
RESEARCHGATE: https://www.researchgate.net/profile/Shraddha-
Pandit-8
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