Gift is a very common mode of transfer in case of immovable as well as movable properties. Section 122 of the Transfer Of property Act defines a Gift as a transfer of moveable and immovable property by one person called the “Donor” to another person called the “Donee”. A Gift shall be made voluntarily and without any consideration. The gift shall be accepted by the Donee during the lifetime of the Donor. A gift can be made only of a property that is already exists and not of future things. A gift, once given, cannot be revoked, in the normal course, for any reasons.
A Gift Deed needs to be registered and attested by two witnesses. It also attracts stamp duty. When the Donee is a member of the family of the Donor, there is stamp duty benefit in some cases when the gift of the immovable property is made. Gifts not covering the above said relations and between strangers involve stamp duty as in a sale transaction. A gift of movable property can be effected by simple delivery of the property.
As far as possible market value of the property gifted should be indicated in the Gift deed. There should be a clause that the donee has received possession of the gifted property. The Donor should not reserve any right for himself in the gifted property.