Gift Deed Question and Answer
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parichaya reddyGift Deed Question and Answer
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parichaya reddyGift Deed:
1) What is a Gift?
A "Gift" under the Transfer of Property Act (TPA) refers to the transfer
of certain existing movable or immovable property made voluntarily
and without consideration by one person (donor) to another person
(donee), and accepted by or on behalf of the donee.
2) What are the provisions under the Indian Contract Act, 1872?
As per Section 25, an agreement made without consideration is void
unless:
It is expressed in writing and registered.
It is made out of natural love and affection between parties
standing in a near relation.
Both donor and donee must be competent to contract, meaning they
must be of sound mind, major, and give free consent.
3) Who are the parties to a gift transfer?
Donor: Must be competent to contract and possess the right to make
the gift.
Donee: May be any person, including juristic persons such as firms or
institutions. A gift made to the general public is void unless
ascertainable.
4) What are the essential elements of a gift?
Must be between living persons (inter vivos).
Transfer of existing movable or immovable property.
Voluntary and without consideration.
Proper registration for immovable property; delivery of possession for
movable property.
5) What are the modes of making a gift?
For movable property: By delivery of possession.
For immovable property: By registration under Section 123 of TPA.
The doctrine of part performance is not applicable to gifts.
6) Is a gift of future property valid?
No, under Section 124, a gift of future property is void.
If a gift consists of both present and future property, only the future
property aspect is void.
7) What happens if a gift is made to multiple donees?
Under Section 125, if one of the donees does not accept the gift, the
portion meant for that donee is void.
A gift made jointly with the right of survivorship is valid; the surviving
donee inherits the entire gift.
8) What are onerous gifts?
Onerous gifts are those that carry both obligations and benefits.
If transferred together, the donee must either accept or reject the
whole deal.
If transferred separately, the donee may accept some and reject
others.
9) What are void gifts? Gifts are void if:
They include both existing and future property (only the latter is void).
One of the donees does not accept their share.
The gift is for an unlawful purpose.
The donee dies before acceptance.
The donor is incompetent to contract.
The gift is revocable at the mere will of the donor.
10) When can a gift be suspended or revoked?
By Agreement: If the donor and donee agree that a gift may be
revoked on the occurrence of a specified event (not dependent on the
donor’s will).
On Grounds of Influence/Fraud: Revocation may occur if the gift was
influenced by fraud, coercion, or undue influence.
11) Are there exceptions to the general rules of gift under TPA?
Donations mortis causa: Gifts made in contemplation of death.
Muslim Gifts (Hiba): Governed by Muslim Personal Law, requiring
only declaration, acceptance, and delivery of possession (no
registration needed).
12) What are the important contents of a gift deed?
Details of the donor and donee (name, age, address, and relationship).
Rights and authority of the donor.
Description of the property.
Confirmation of delivery of possession.
Mention of any third-party rights (e.g., tenant or easement rights).
Schedule of the property.
Case laws
— Sundar Bai v. Anandi Lai: — In this case the donee was a child and in
the care of the donor himself. The High Court held that in such circumstance,
express acceptance could not be insisted upon.
— Ponnuchami Serval v. Balasubramanian, In this case of the father
himself was the donor and executed a gift deed in favour of his minor son.
The parties continued to stay together in the said property even after the
gift. In these circumstances, it was held that the gift in favour of the minor
would be deemed to have been accepted as the father himself was the
guardian and had himself executed the gift deed.
What is the Difference between Gift and Will
will Gift
Type of document A will has to be drafted A Gift deed has to be
made
Required signature Requires sign of testator Requires sign of donor
and attested by two and attested by two
witnesses witnesses
Used for Will can be used for all Gift deed can be used
asset classes for all asset classes
Timing for transfer of Transfer of assets Transfer of assets
assets happen only after the happen immediately in
death of testator lifetime of donor
Changeability Will can be modified or Gift deed once executed
changed until the cannot be revoked
testator is alive
Registration Registration is optional Registration is
except where mandatory where
immovable property is immovable property is
transferred gifted to donee
Registration charge stamp duty payable Stamp duty for
only when the will is registration may have to
registered be incurred but it is
lower than normal
stamp duty
