Table Of Content
- Who is the donor and donee?
- Types of gift deeds
- What document do I need to create a gift deed?
- Create a gift deed in India and how much does it cost?
- Register a gift deed and how much does it cost?
- What are the Advantages and disadvantages of gift deeds?
- What is the validity of a gift deed?
- Frequently Asked Questions
A Gift deed is said to be a document where an individual gives out his/her property or anything valuable to the other person. The person can be anybody a friend, a family member, or even in charity if they want to give, in simple words they give to someone trusted Making a gift deed on stamp paper is a choice, If they want can get it made on stamp paper and if they don’t want they can get it made without it. This document is mainly made by those who usually live alone and have a lot to give.
Who is the Donor and Donee?
The donor is the one who is responsible for making the gift deed and is gifting the valuable asset to the other person Donee is the receiver who will be receiving the gifts. You might have studied about the communication model where there are two people: sender and receiver. In the same way there is a sender who is the donor and a receiver who is the donee.
How many Types of Gift Deeds are there in India?
There are two types of Gift deeds in India, which are as follows:
- Revocable Gift Deed: It is the type, where the donor can revoke the gift deed. Until and unless the donor does not decide to give the gift deed to the donee till then the donor can revoke the deed. Once the gift is given and is delivered to the Done then the donor can not take it back.
- Irrevocable Gift Deed: Here in this the donor can not revoke the gift deed once offered to the donee.
What Document do I need to Create a Gift Deed?
The documents required for the gift deeds are:
- Conveyance Deed
- Sales Deed
How to Create a Gift Deed in India and how much does it Cost?
To make a gift deed is simple when you are opting for an online way. The procedure of getting your gift deed made is as follows:
- Step 1: Visit our website www.edrafter.in
- Step 2: Go to the Gift Deed section and fill out the basic details of the form.
- Step 3: After that, you will receive a 20 mins Zoom call from our drafting expert. There you will be required to tell the details of your Gift Deed.
- Step 4: After the call, our expert will draft your document and will send via email on your respective mail ID.
- Step 5: The draft will be shared within 1 day. And if any correction that you need to make can be done (2 times only)
- When you are satisfied and every correction is done the final draft will be shared to you in 1 day only.
The cost of a Gift deed is usually Else you can make it on Rs. 100/- or Rs. 300/- and so on.
Do I need to Register a Gift Deed and how much does it Cost?
Registering your Gift Deed will only help you make it valid. 1% of the total value of the gift will be counted as the registration fees. For example, if the total value of the valuable asset is 500,000 then the 1% of it will be Rs. 5000/-.
What are the Advantages and Disadvantages of Gift Deeds?
There are various Gift Deeds pros and cons that one can avail. Let’s have a look at some of the major advantages and disadvantages of Gift Deeds.
The Advantages of Gift Deeds are
- It is immediately carried out.
- Gift deeds must be documented, making them less likely to be challenged in court.
- Deed transfers are often tax-free for both the donor and the recipient.
The Disadvantages of Gift Deeds are
- It is irrevocable and conclusive.
- Numerous additional costs associated with customs charges vary from one jurisdiction to another. That could be problematic if both the donors and the donee later experience problems.
What is the validity of a Gift Deed?
When the donor has given the Gift Deeds to the donee then the validity of the gift deed is forever. It can only be terminated in a few special circumstances such as the demise of the donee, or if the gift deed is not in power then the donor dies, which is also a reason for the termination of the Gift Deed.
Gift deeds assist in outlining the intentions offered to people who believe they are entitled to the property. Once the deed has been carried out, the receiver receives an irrevocable transmission. The Gift deed can be really easy to process. You can avail of this service from us. We will draft your document according to your wish and also will rectify the corrections which you wish to make.
Frequently Asked Questions (FAQ)
It is simple that if the Gift Deeds value is more than 50,000 then they are required to pay the gift deed tax. And if it is below then they are not required to pay the taxes. The more value of the gift assets the more Gift Deeds tax needs to be paid.
Though it is said that by making a gift deed disputes are settled. But if someone has a problem with that then they can file a suit against that gift deed. For the cancellation of a gift deed, they should have a valid and appropriate reason to file a suit. Also, they can declare for the cancellation even if they are not a part of the deed.