Gift deed registration in Ahmedabad, Gujarat – charges, process, documents

Overview of Gift deed registration in Ahmedabad, Gujarat

We all love to receive gifts. Gifts represent the mutual affection & respect among people for each other. But, to ensure their legal validity, it would be a good idea to create a gift deed and get it registered under the legal provisions, especially in cases where a person gifts any immovable property to the other party. The Gift of property involves transferring the ownership of one’s property to another person by executing a gift deed.

So, what is a gift deed in Ahmedabad, Gujarat? A gift deed is a legal instrument through which an owner of any property (immovable or movable property) effectuates the transfer of any gift to the person out of his own will without expecting or accepting any consideration in return. The owner making such a transfer is known as a Donor and the person accepting such a gift is known as a Donee.

Like a sale deed, the primary purpose of a gift deed is to enclose the details of the parties and the intention of the donor to gift the property to the donee. Executing a valid gift deed is evidence of the transfer of ownership and all rights associated with the property from the donor to the donee thus stating the Donee as an absolute owner of the property without any financial transaction.

Not only this, a gift deed is legally binding and is admissible as a piece of evidence before the Courts during a legal proceeding. Moreover, it affords legal protection to the parties in the event of any dispute that might arise in the future. Though there are generally no criteria for the eligibility to make a gift, only a natural person who has attained a majority could make a valid gift.

However, a minor is incompetent to transfer property as a gift since they are incompetent to enter a contract under the provisions of the Indian Contract Act 1872. However, they can accept gifts through their guardians who will act as managers of the property until the minor attains majority.

Located on the western coast of India, Gujarat has the longest coastline in India. It is the fifth-largest state in terms of area and the 9th most populous state in India. It shares boundaries with Rajasthan, Dadra and Nagar Haveli, Daman and Diu, Maharashtra, and Madhya Pradesh. The indigenous people of the state are known as Gujarati, and the official language of the state is Gujarati. Gujarat encompasses 23 sites of the Indus valley civilization, which is one of the oldest civilizations. Gujarat has the fourth-largest economy in India, with a Gross State Domestic Product (GSDP) of rupees 19.4 trillion. In Indian states and union territories, the human development index Gujarat ranks 21st. Traditionally, the state has a low unemployment rate and is considered one of India’s most industrially developed states and manufacturing hubs.
The major industrial cities in Gujarat are Ahmedabad, Surat, Vadodara, Rajkot, Bhavnagar, and Jamnagar. The Ahmedabad city of Gujarat was ranked 3rd on the list of Forbes 2010 world’s fastest-growing cities.
Capital- Gandhinagar

The startup ecosystem of Gujarat
According to the ‘State and Union Territory Startup Ranking Exercise 2019,’ Gujarat is the best performer. Gujarat has a well-structured startup ecosystem that focuses explicitly on incubation regulatory support and awareness. The Gujarat startup policy focuses on the initiatives to build a robust startup ecosystem in the state. Under the ‘Industries and Mines Department,’ the Gujarat government launched the state startup policy in 2015. The policy was drafted to provide benefits and incentives to startups across various areas of intervention. By drafting outline sector-specific startup policies like ‘Electronics and Information Technology (IT) policy and ‘The student Startup and Innovation Policy (SSIP), Gujarat has become one of the few states in the country that designs sector-specific startup policies. The startup ecosystem of Gujarat is already powerful because of the prominent startup incubators and accelerators.
Some significant aspects of the startup ecosystem in Gujarat or as follows: –
For the development of a strong startup ecosystem, the Gujarat government has assigned the industries and mines department as the nodal department for startups. The nodal officer for startups is the industries commissioner.
The government is using educational institutions as a platform to launch some of the most prominent incubators and co-working spaces in India, such as I create, Venture studio, The address, and Dev X.
The Student Startup and Innovation Policy (SSIP) designed by the Gujarat government have the following objectives: –
The policy aims to build a capacity for at least 200 premier educational institutes in the state.
Through the policy, the government tries to support at least 1000 student-led innovations every year to encourage students into entrepreneurship.
The policy aims to create at least one percent of graduates into job creators and business owners.
The policy vision is to harness 500 student startups in the upcoming five years.
And through the policy, the Gujarat government files at least 100 patents from universities every year.

Top business ideas in Gujarat
With a population of 60 million people, Gujarat is registered as the third-largest source of India’s Gross Domestic Product (GDP). The significant growth sectors in Gujarat are industrial service and farming. Gujarat has an excellent transport network and access to a vast platform of transportation and communication. The state is traditionally famous for business people who have founded some of India’s largest enterprises. Setting up a business in Gujarat is a great idea, and if you are looking for the best business options in Gujarat, then here are a few: –

Papad Production
Papad is among the traditional dishes of Gujarat. The city is famous for its culinary ingredients prepared with dal, perfect as a small snack. Papad belongs to Gujarat’s traditional cuisine that attracts many foreigners because of its different flavors. Setting up a Papad production business in Gujarat is a small-scale business that needs less investment and can help make huge profits. For setting up a Papad production business, you need skilled workers, and the raw materials required for starting this business are available locally.

Salt production
Gujarat shares the longest coastline, providing enough resources to start a salt production business. The raw material required for salt production is locally available around the coastline. By collecting the right components in appropriate amounts, you can set up a salt production business in Gujarat. The salt production business in Gujarat requires a considerable investment and will help you gain long-term profits.

Ethnic wear business
The customs and culture of Gujarat are very vibrant and colorful. One can easily set up an ethnic wear shop in Gujarat where they can sell the traditional dandiya dresses and ethnic dresses of Gujarat. Foreign nationals who come to visit Gujarat like to purchase such attire. The ethnic wear business requires low investment and can be started with the help of local artisans.

Agrochemical industry
The primary crop of Gujarat is cotton which holds nearly ten million hectares of the state’s total 19 million hectares. Gujarat has a high demand for agro-based goods like seeds, machinery, fertilizers, etc. so setting up an agrochemical industry in Gujarat is a good startup idea. For setting up an agrochemical industry in Gujarat, you need a considerable amount of investment.

Pickles and jams business
If you have any knowledge about preparing pickles and jams from scratch, then opening a pickles and jams business is the ideal business option for you. Gujarati people are pickle lovers, and their food is incomplete without pickles, so this business can help you yield huge profits. This business doesn’t need a lot of investment and can be started by hiring a few people.

Gujarati Snacks
If you want to set up a business in Gujarat, then what can be best than Gujarati snacks. Gujarati snacks are very popular in India, so you should try your hands on the Gujarati snacks business. To start a Gujarati snack business in Gujarat, you can hire local people, and this business needs low investment.

Gems and Stones business
You can gather some exquisite and unique stones and gems locally around the coastline. The state is naturally endowed with a long coastline that provides gems and stones. To set up gems and stone business, you need a reasonable investment, and this business can make you huge profits. You can collect those unique gems and stones and sell them in the market for profit.

Essentials of a Gift Deed in Ahmedabad, Gujarat

The provisions related to the transfer of property are governed by the provisions of the Transfer of Property Act, 1882, which prescribes the essentials of a gift deed in Ahmedabad, Gujarat as provided below-

i. The gift should be made out of the free will and affection of the donor towards the donee in his lifetime. Further, the donee must accept the gift within his life for its legal validity.

ii. In case the gift is an immoveable property it must be attested and registered compulsorily.

iii. With a gift deed, the lawful owner of a property (donor) can transfer it to another party (done) without any monetary consideration.

iv. A gift deed must be executed out of love and affection towards the donee without any consideration in return.

v. The gift of immovable property will be effective when the gift deed is registered with the appropriate Registrar or Sub-Registrar. The gift of movable property is effective when the gift deed is registered or by delivery of the property. When the gift deed is registered, the transfer of the property from the donor to the donee takes place immediately, and the parties need not go to court for its execution.

vi. The donor must be a major at the time of transfer of property through gift deed;

vii. The subject of the gift (i.e. immovable property) must exist and should be free of any existing claim.

viii. The property should be registered under the provisions of the Indian Registration Act, 1908 to the sub-registrar having jurisdiction over the area of its location.

ix. The donor should be financially sound at the time of making the gift deed and should not intend to use it as a tool for tax evasion and illegal gains.

Gift Deed vs Will in Ahmedabad, Gujarat– What is the difference?

Which properties could be transferred through a Gift Deed in Ahmedabad, Gujarat?

Any movable or immovable property could be transferred through a gift deed by its lawful owner. However, the donor can only transfer properties that he holds lawfully at the time of execution of property and not any property he expects to receive ownership of in the future.

Immovable property has been defined under the Transfer of Property Act 1882, as either land or any direct benefits arising out of land or everything attached to the earth but does not include crops, grass, or standing timber.  On the other hand, properties that do not come under the definition of immovable property are movable property.

What is the process of Registration of a Gift Deed in Ahmedabad, Gujarat?

As provided above, registration of the immovable property in Ahmedabad, Gujarat is mandatory under the Transfer of Property Act 1872. Section 123 of the Transfer of Property Act 1882 states that any gift of immovable property shall be valid only when it is registered through a gift deed signed by both the parties and attested by at least two witnesses. Provided below is the step-by-step process to register a gift deed under the provisions of the Indian Registration Act 1908-

i. Drafting the Gift Deed in Ahmedabad, Gujarat – The first step of registration of a gift deed is to draft a gift deed that could be drafted effectively by taking the support of a legal professional who would specify the name of the donor and the donee and other details. To ensure its validity, a gift must be made voluntarily without any consideration that should be stated in the deed.

ii. Acceptance of Gift in Ahmedabad, Gujarat – Next, the donee must have accepted the gift during the life of the donor. Any failure to communicate acceptance of the gift may render the gift invalid.

iii. Registration of the Gift Deed in Ahmedabad, Gujarat – Finally, it is mandatory to register a gift of immovable property (voluntary in other cases) to register a gift deed for effectuating its transfer. Further, it will also require attestation by at least two parties during the process of registration and post-registration.

• Next, the property subject to the gift deed must be assessed by an approved valuation professional at the office of the Sub-Registrar;
• Find out the applicable registration fee & stamp duty charges with the help of a professional lawyer or through the official state website. The stamp duty charges vary from state to state as the rates are comparatively lower for women applicants.
• Make a payment of the applicable charges and get the gift deed submitted to the District Sub-Registrar having jurisdiction over the location of the immovable property gifted.
• Finally, registration of the gift deed accompanied by the delivery of the deed with the property to the donee completes the process

What are the crucial clauses to be included in a Gift Deed in Ahmedabad, Gujarat?

i. Details of Parties – The gift deed must provide the names & other details such as name, address, and the relationship between the donor and donee including the intention of the donor.

ii. Consideration involved – The gift deed must state that the donor intends to transfer out of his free will and affection towards the donee and there is no consideration involved in the transaction.

iii. Voluntary Transfer – The gift deed should compulsorily mention that the donor is transferring the property and is doing so voluntarily without fear, coercion, or threat from the other party.

iv. The intention of Delivery – The gift deed should have the indication of the intention of the donor about delivery of the possession of the gift property, either expressly or impliedly.

v. Ownership of Property – A gift deed should describe the property including the fact that the property is in existence in present. The donor is the sole & absolute owner of the property and has delivered the possession of the gift property to the receiving property.

vi. Rights of the Parties – The gift deed should also prescribe the respective rights of the donor & donee in pursuance of the transfer such as taking proper care & periodical maintenance of the property, enjoying the property, or mortgaging the property.

vii. Acceptance by Donee – The gift deed should state that the donee has willingly accepted the gift of the property and has acquired ownership.

viii. Revocation – Though, it is not necessary to have a revocation clause, the parties may mutually decide whether or not the gift deed would be revocable to avoid any conflict in the future.

Documents Required for Registration of Gift Deed in Ahmedabad, Gujarat

• Copies of the proof of the identification of parties such as PAN, Aadhaar, Driving License, etc.
• Original documents related to the ownership of property.
• NOC, in cases where the property is agricultural land.
• Copy of affidavit affirming the legitimacy of the deed as regulated under section 22A of the Registration Act, 1908

What are the Tax Implications of Gift Deed in Ahmedabad, Gujarat?

Gifts of immovable property in Ahmedabad, Gujarat are taxable under section 56(2)(x) of the Income Tax Act, 1961. Therefore, sub-clause (a) to section 56(2)(x), whenever a person accepts a sum of money exceeding Rs.50,000 without any consideration in form of a gift, the whole sum will be taxed in the hands of the recipient under head ‘Income from other sources.

But, where a person accepts an immovable property without consideration as a gift and the value of stamp duty value of the gift deed exceeds Rs.50, 000, then an amount equal to the Stamp duty value shall be charged as tax from the donee.

However, there are certain exceptions to the taxability of gifts fulfilling which no tax shall be levied on the donee, which have been provided below-

• Where the gift has been received from any relative;
• The gift is received on some special occasions such as the marriage of the donee, or
• The gift is being received in pursuance of a will or through inheritance, or
• The gift is being received in contemplation of the death of the donor, or
• The gift is being received from a local authority as provided under the provisions of the
• If the gift is being received from any fund, university, foundation, other educational institution, other medical institution, hospital, trust, or institution as defined under the provisions of Section 10(23C) of the Income Tax Act,
• If the gift is being received from any trust or charitable university as provided under section 12A or 12AA, or
• If the gift is being received by a person from a private trust solely created for the benefit of the relative of the donee.

Can a gift deed be revoked in Ahmedabad, Gujarat?

Generally, once registered it is not possible to revoke a gift deed, but there is one exception to this rule. If the donor expressly reserves the right to revoke the deed under any specific circumstances or at any certain point of time and the donee accepts the gift with the condition, it could be revoked under the provisions of section 126 of the Transfer of Property Act, 1882.

Further, section 126 of the Act also specifies the ways of revocation of a gift, which includes-

i. Revocation by mutual agreement between parties in Ahmedabad, Gujarat.

ii. Revocation by rescission as a contract in Ahmedabad, Gujarat.

i. Revocation by mutual agreement in Ahmedabad, Gujarat

If the parties have agreed mutually to revoke the deed on happening at a certain event or a certain point in time, then the gift deed shall be revocable. However, to ensure its effect the conditions should be specified along with the fact that non-compliance with the conditions would lead to termination of the agreement and the donor may revoke the deed.

Even if the parties fail to mention the condition in the deed but state the condition in a separate mutual agreement which must be part of the transaction of the gift. In such cases, the condition shall be valid and legally enforceable.

However, one of the parties should not call for the revocation of the deed unless the same was based on any fraud, misrepresentation, undue influence, or the property being an onerous one unilaterally. Even if the gift was received due to the before-mentioned reasons, the onus of proving such fraud or misrepresentation, undue influence, or was onerous shall be on the person who challenges the Gift Deed.

ii. Revocation by the cancellation of contract in Ahmedabad, Gujarat

The very basis of the creation of the gift deed is based on the fact that the gift should be made out of the free will of the donor and not due to any coercion or undue influence. Thus, if the donor could prove that there was no free consent towards making the gift, the gift deed will be revoked by the cancellation of the contract. In other words, a gift deed should be in the nature of an express or implied contract, under which an offer is made by the donor and accepted by the donee. If the contract itself is withdrawn or revoked by one part, there seems no question of a transfer of property taking place under the gift deed.

However, one of the parties should not call for the revocation of the deed unless the same was based on any fraud, misrepresentation, undue influence, or the property being an onerous one unilaterally. Even if the gift was received due to the before-mentioned reasons, the onus of proving such fraud or misrepresentation, undue influence, or was onerous shall be on the person who challenges the Gift Deed.

Conclusion of Gift deed registration in Ahmedabad, Gujarat

Consequently, the subject matter of gift & drafting a gift deed has been in existence for ages and it has been governed under the rules, regulations, and procedures regarding the Gift lay down in the Transfer of Property Act, 1882. For an effective transfer all the conditions i.e. transfer of certain existing moveable or immoveable property made out of the free will of the donor and without any consideration in return. The donor must be legally competent to effectuate the transfer of property through a gift deed in the lifetime of the donee, otherwise, it would become void in effect. A gift deed must be registered and duly stamped in the office of the sub-registrar. Finally, a deed of the gift once executed and registered, shall not be revoked unless the lifetime of the donee.