The Gift Deed: A Common Way to Share Love and Affection

Gift deed in Telangana, How is it done


10/6/20233 min read

There are a multitude of ways to transfer your property to someone, but one of the most common and prevalent methods is through a gift deed. In simple terms, a gift means something given to someone out of love and affection without any form of monetary consideration. Through a gift deed, movable or immovable property can be transferred from the donor to the donee, provided that the transfer happens willingly, without any monetary exchange.

What Constitutes a Valid Gift?

Before proceeding with a gift deed, there are certain essential prerequisites that need to be abided by:

  1. Voluntary Transfer: The transfer of property through a gift deed should be gratuitous and voluntary, with no signs of coercion or undue influence.

  2. Natural Love and Affection: The only consideration involved should be natural love and affection, with no monetary considerations.

  3. Tangible Property: The gift must be a tangible property, whether movable or immovable.

  4. Acceptance by the Donee: The donee should accept the gift during the donor's lifetime and while the donor is capable of giving. If the donee passes away before acceptance, the gift becomes void.

  5. Acceptance After Execution: Even if the instrument hasn't been registered, the gift should be accepted by the donee after its execution.

  6. Delivery of Possession: Delivery of possession is crucial; it's one of the vital aspects of a gift.

  7. Existing Property: The property transferred through a gift deed must be an existing property. A gift involving future property is not valid.

  8. Capacity to Enter into a Contract: Only individuals capable of entering into a contract can make a transfer through a gift deed. A gift made by a minor is not legally valid, but a guardian can accept gifts on behalf of a minor.

  9. Registration: Failure to register a gift deed renders the transfer invalid and inadmissible as evidence. A gift of immovable property must be registered within four months from the date the gift deed was executed. The document comes into operation from the date of execution, not the date of registration.

  10. Attestation: The gift deed needs to be attested by at least two witnesses in whose presence the donor has signed the document.

  11. Transfer of Movable Property: A gift of movable property can be transferred either by a registered instrument or by delivery, similar to the way goods are delivered. Registration of a gift of movable property is at the sole discretion of the donor.

  12. Mutation of Property: The gift deed must be registered in the name of the donee to apply for mutation of the property. Mutation is essential for transferring utilities in the name of the donee.

Registration of Gift Deed

Any gift of immovable property cannot transfer title to the donee unless the gift is duly registered. A gift deed must be registered following the procedure prescribed by the Registration Act of 1908. The gift property is evaluated by an approved valuer for the purpose of registration.

Stamp Duty and Registration Charges

Stamp duty and registration charges must be paid for the registration of a gift deed. These charges may vary from state to state and sometimes vary based on the gender of the parties involved. Some state governments offer certain concessions in the case of transfers of immovable property between blood relations.

Fee Payable on Gift Deed in Telangana:

  • For gifts executed in favor of relatives and specified entities: Stamp Duty - 1% of Market Value, Registration Fee - 0.5% of Market Value (Min. Rs. 1,000, Max. Rs. 10,000), Transfer Duty - 1.5% of Market Value.

  • For other cases (non-relatives): Stamp Duty - 4% of Market Value, Registration Fee - 0.5% of Market Value (Min. Rs. 1,000, Max. Rs. 10,000), Transfer Duty - 1.5% of Market Value.

It is crucial to stay informed about the latest rules and regulations regarding gift deeds in Telangana, as they are subject to change. Consulting with legal professionals or local authorities is advisable for up-to-date guidance on property transactions involving gift deeds in the state.

In conclusion, a gift deed is a heartwarming way to share your love and affection with your loved ones, but it also involves legal procedures and responsibilities. Understanding the prerequisites and following the proper registration process is essential to ensure a smooth and legally sound transfer of property through a gift deed.

Disclaimer: This article offers general information, not legal advice. Laws may vary, consult a legal professional for specific guidance. Use this content at your own discretion