January 20, 2023 | Corporate & Commercial LawA gift deed becomes valid only if it is given out of natural love and affection by one family member/ friend to another, of course without any money being exchanged.
A gift deed, as we understand pertains to a legal document that voluntary transfers property to the receiver of the gift, without any monetary consideration. Therefore, there has to be a donor who intends to transfer the property and a donee who has to accept the gift. Under the Indian law, Section 122 of the Transfer of Property Act 1822, elaborates how a donor can transfer an existing movable or immovable property to the donee of their own accord. However, a gift deed becomes valid only if it is given out of natural love and affection by one family member/ friend to another, of course without any money being exchanged. Furthermore, under Section 17 of the Registration Act, 1908, it is mandatory to get a registered gift deed done, if you intend to transfer immovable property. However, a gift deed is irrevocable after the execution is completed.
Under the Indian Registration Act, the process for registering a gift deed is as under:
The following properties can be gifted.
A Minor is incapable of contracting and such contracts are void ab initio. Hence, a minor cannot transfer or gift any property, even he intends to. Likewise, if the minor is the donee, then his natural or legal guardian can accept it on his behalf and be the caretaker of the gift, till the minor attains majority.
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