Table Of Content
- What Requirements are of the Gifted Property?
- Is Gift Deed Possible without Blood Relation?
- Can a Non-Blood Relative challenge the Gift Deed?
- Does a Gift Deed require a Blood Relation?
- How long does the Gift Deed Process take?
- Who are considered as Non blood Relatives?
In India, giving property whether movable or immovable as a gift of appreciation or love to a blood relative or a non-blood relative is known as gifting. To be considered a Legally acceptable transaction, it should be registered with the sub-registrar and is done so without any consideration.
What Requirements are of the Gifted Property?
According to Indian law, a property must fulfill the following conditions in order to be considered a gift:
- Either moveable or immovable property is required.
- It has to be transferable property.
- The property ought not to be a holding in the future.
- There should be physical property.
Is Gift Deed Possible without Blood Relation?
A Gift Deed is a Legal Document used when property is transferred from one person to another without payment. However, carrying out a Gift Deed exclusively in benefit of blood relatives is not restricted. Anybody may execute a Gift Deed on behalf of another person, whether or not they are related to him; therefore, mentioning a relationship in the deed is not required. However, the donor must give a justification for the gift in order to proceed in the other person’s favor.
Can a Non-Blood Relative challenge the Gift Deed?
Only if you can demonstrate in court that the registered Gift Deed was obtained by fraud or coercion will you be allowed to contest it. The court will dismiss it if you are unable to provide proof of such. It doesn’t matter that the donor has a blood relation with that person or not. If the Gift Deed is made due to force or fraud it can be challenged by anyone.
In case if you want your gift deed to be cancelled, you can go through our detailed blog on gift deed cancellation to know if is it possible or not.
Does a Gift Deed require a Blood Relation?
Giving property, whether movable or immovable, to a blood family or a non-blood relative as an appreciation and love is known as a gift in India. It is done so voluntarily and needs to be registered at the sub-registrar office in order for the transaction to be considered lawful. There is no boundations if the donor has someone dear who is not in his/her blood relation. The donor can still present the Gift Deed in the name of the person who is not related to the donor by blood.
How long does the Gift Deed Process take?
Gift Deed property is comparable to other types of property. The same transfer procedure registering with the Deed Registrar’s Office. The distinction is that the donor and the Donee do not exchange money. Because of the love and affection shared by both parties, Gift Deeds are widespread among families.
Stamp duty on Gift Deeds is lower than the sale deeds. Since there was no financial exchange between them, TDS was applicable. Belonging to a Gift Deed is equivalent to owning other types of property. Legal ownership passed at the same time the Gift Deed was completed.
The registration procedure is the same as for any other selling deed. Thus, the Gift Deed procedure takes the same amount of time as the sale deed procedure. From an income tax perspective, there is no capital gain applicable in the event of a Gift Deed.
Who are considered as Non blood Relatives?
It is true that those who marry into a family are not connected by blood. For instance, your brother’s or sister’s spouse, any adoptive family members, stepparents, stepbrothers, and so forth. Whether through adoption or marriage, they remain a member of your family.
When giving away their property, owners should be aware that they forfeit ownership of the presented item as soon as the Gift Deed is registered. This means that the terms of the Gift Deed take effect right away, just like the terms of a sale or relinquishment Document. This is untrue in the case of a will, whose terms take effect only after the will’s maker passes away.
Checkout our Will vs Gift Deed blog to know the differenced between these two legal documents that will help you to choose the one that suits you the best.