Section 122 of the Transfer of Property Act characterizes ‘gift’ as the exchange of certain current moveable and immoveable property made intentionally, with no thought, by a giver to a donee. There, be that as it may, are sure fundamentals of a gift – the gift, for instance, should be substantial, and its proprietorship should be moved by the benefactor and acknowledged by the donee.
Which property can be gifted?
You can’t gift all that you own. On the off chance that you are a Hindu, you may discard your self-obtained property. Additionally, on the off chance that you are a coparcener, you may part with your coparcenary interest in a property, subject to satisfaction of specific conditions. A widow may in specific cases Draft a Gift Deed acquired by her from her better half, yet she can’t do as such by will.
How is a gift different from a sale deed?
In deal deed, you offer away your property as a trade-off for cash. The deed is enrolled expressing the amount you have been paid for the property sold. Yet, in the event that it is gifting at that point it is a surrender of your resources with no financial thought. The public authority doesn’t acknowledge gifting between two non-family members; it acquires income through stamp obligation on land transactions.
Can a gift be revoked?
A gift when finished is official on the giver. It can’t be denied by him, except if the property has been taken from him by misrepresentation or excessive influence.
When can a gift be taxed?
Normally, the giver isn’t subject to pay any duty on the property he has surrendered. Notwithstanding, sometimes, beneficiaries are burdened under the head ‘Pay from other sources’ under the Income Tax Act, 1961. Gifts are not burdened on the off chance that they are gotten from family members on the event of marriage, via will or legacy, or from any neighborhood authority, asset or establishment enrolled under Section 12AA. A relative can be the benefactor’s companion, kin, kin of life partner, kin of one or the other parent, etc. Outside of this, a property got by an individual is available if the stamp obligation estimation of such a property got without thought (land or assembling or both) surpasses Rs 50,000. For the motivation behind making an endowment of unfaltering property, the exchange should be enlisted, endorsed by or in the interest of the contributor, and validated by at any rate two observers. The stamp obligation, determined based available estimation of the property (varying from state to state), should be paid at the hour of registration.States have various laws, nonetheless, in the matter.In Rajasthan, for example, no stamp obligation must be paid if a spouse is gifting a steady property to his significant other. Be that as it may, 2.5 percent of the property estimation must be paid as stamp obligation in the event that the property is being moved for the sake of father, mother, child, sister, girl in-law, grandson or girl as a gift.