What is Gift Deed Registration
Under section 122 of the Transfer of Property Act, 1882, you can transfer immovable property through a gift deed. Like a sale deed, a gift deed contains details of the property, the transferrer and recipient. But instead of a sale consideration in a sale deed, a gift deed allows you to transfer ownership without any exchange of money. Registering a gift deed with the sub-registrar is mandatory as per section 17 of the Registration Act, 1908, and as per section 123 of the Transfer of Property Act. If you don’t do this, the transfer will be invalid.
a gift deed is registered in the name of the recipient, only then can she apply for mutation of the property. Mutation is necessary to transfer utility connections in the name of the recipient.
Points to be noted
- A minor is not capable of entering into a valid contract, so the minor cannot make a valid gift deed. The guardian of the minor can accept a gift made to a minor on his behalf.
- A gift once made cannot be revoked.
- Gifts made to relatives defined by the Income Tax Act are exempt from tax in the hands of the donee.