Gift deed registration in Dehradun, Uttarakhand – charges, process, documents

Overview of Gift deed registration in Dehradun, Uttarakhand

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 Dehradun, Uttarakhand? 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.

Uttarakhand is officially known as Uttaranchal till 2007. Uttarakhand’s name is derived from the scriptures’ Sanskrit words, i.e., Uttara means ‘north’ and Khanda means ‘land.’In short means’ Northern Land’. As per the historical Hindu scriptures, Uttarakhand is a combined region of “Kedarkhand” (At present known as Garhwal) & “Manaskhand” (At present known as Kumaon). Uttarakhand is located in the northern part of India. Uttarakhand is also named “Devbhumi” (which means the Land of the Gods). It is named so because of its cultural and religious significance and due to the presence of various Hindu temples and pilgrimage sites found across the state. Uttarakhand is a well-known and enthralling tourist place, especially due to the natural environment of the Himalayas, the Bhabar, and the Terai regions.
This state shares its international boundaries with Tibet (an autonomous region of China) in the north, Nepal (Sudurpashchim Province) in the east, and National boundaries with Uttar Pradesh in the south and Himachal Pradesh in the west and northwest. Uttarakhand constitutes 86% mountainous and 65% covered area by forest. The Jim Corbett National Park(launched in 1973) is India’s oldest and most prestigious national park. This state ranks 20th in terms of the country’s population growth with the contribution of 0.83% of the population on 1.63% of the land. Demographically, various languages are spoken, but among them, the Hindi language is mainly spoken by the native people of Uttarakhand. However, based on place of origin in the Garhwal and Kumaon region, Garhwali and Kumaoni are also spoken, respectively.
Uttarakhand’s beauty is inherent in things like the huge mountains of the Himalayas, the sacred rivers, the spiritual regime, stunning and enchanting landscapes, the colorful resonating rhythms of nature, and exhilarating history molded in the ancient stones, a mesmerizing evergreen flora, and fauna. Hence, these things make Uttarakhand a perfect place for nature enthusiasts, mountaineers, bike riders, rock climbers, spiritually elevated fanatics, and many more. Apart from being an enthralling tourist spot, Uttarakhand is also blessed as a goldmine for anthropologists, historians, linguists, geologists, etc. In terms of economy, Uttarakhand is India’s 2nd fastest-growing state, and agriculture is one of the major contributing sectors of the economy of Uttarakhand.

Capital- Gairsain (Summer) and Dehradun (Winter)

Top Business Ideas in Uttarakhand
Uttarakhand is one of the best tourist destinations in North India. Uttarakhand is a highly exhilarating state and credible state to seek the attention of various investors and entrepreneurs. Thereby it attracts several opportunities to spend time in the lap of nature. Uttarakhand is well-known among the best Indian states on the kernel of providing ease of doing business. As per the latest records of the growth of the Uttarakhand manufacturing sector, it accounts for 33% of the State GSDP. Uttarakhand is ranked 1 in the list published by the Export Preparedness Index 2020.

Adventure Tourism Business
Uttarakhand is known for its great mountains of the Himalayas, elegant rivers, various holy pilgrimage sites, and many more. Due to this, it attracts many tourists and adventure enthusiasts interested in sports such as rock climbing, skiing, ice skating, sailing, parasailing, canoeing, yachting, trekking, mountaineering, kayaking, and hiking, and various other favorite adventure sports such as paragliding, skydiving, rafting, and bungee jumping. You can develop an adventure sports business idea to utilize this potential of Uttarakhand, and this is a lucrative business idea with a promising future.

Fish Farming Business
Fish Farming is an essential contributor to the economy of Uttarakhand. Besides the agriculture and tourism industries, Fish farming is also an integral part of the state’s economy. Some of the most in-demand and grown fishes are Mulley, Monstrous Goonch, Tangra, Indian Trout, Butchwa, etc. Hence, this fishing business requires specialized knowledge, necessary skills, and careful monitoring skills. This commercial fish farming business is gradually increasing its business venture globally.

Restaurant Business Idea
Uttarakhand is a place for nature lovers and adventure enthusiasts. Hence, it considerably aggregates India’s most famous hill stations such as Mussorie, Nainital, Dhanaulti, Lansdowne, Sattal, Almora, Kausani, Bhimtal, Pauri, and Ranikhet. Apart from this, Uttarakhand has 12 National Parks and Wildlife Sanctuaries, such as Jim Corbett National Park(2nd oldest), Rajaji National Park, Nanda Devi National Park, Gangotri National Park, Valley of Flowers National Park, etc. These national parks and wildlife sanctuaries comprise 13.8 percent of the state’s total area. Here, you can set up a restaurant with the essence of regional inclusion of food specialty to serve the tourists (native and foreign) as well as the local people. First, set up a small business at a specific tourist hotspot, then stretch the reach to different stations as productivity blooms.

Startup Ecosystem in Uttarakhand
The Uttarakhand state has tipped the performance of India’s growth in the startup ecosystem by providing immense opportunities, incentives, and credible support to the startups. The citizens and the inhabiting students are inspired to lead this entrepreneurship, and the state of Uttarakhand regularly provides alternative endeavors to create a productive environment for innovative and creative business ideas.
The major benefit aspect is that the state is providing the ease of doing business which is supported by various vital institutions, including government departments, namely the Directorate of Industries at the state level and the District Industries Centers (DIC) at the district level is set up to cultivate business reforms and ideas in Uttarakhand. Besides this, The State industrial Development Authority (SIDA) holds the obligation of regulating, controlling, and providing a sustainable industrial development parameter in the state to maintain the decorum of uniformity, stability, and harmony.
As well as prominent educational institutions like the Indian Institute of Technology – Roorkee, Indian Institute of Management (IIM)- Kashipur, and National Institute of Technology (NIT) provide a platform for students to evolve as entrepreneurs. The State of Uttarakhand published its Startup Policy in 2018 and purposefully replaced the policy broadcast in 2017. This Uttarakhand Startup policy focuses on areas that benefit the state’s entrepreneurs in finding the best business ideas and promoting investment in incubation and startups. The state has established a body known as the startup council, which comprises the primarily selected members from government and private backgrounds, to monitor, regulate, maintain and implement the Startup Uttarakhand Initiative. The purpose or vision of this initiative is to stimulate the ecosystem to feed the spirit of entrepreneurship in the state.

Essentials of a Gift Deed in Dehradun, Uttarakhand

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 Dehradun, Uttarakhand 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 Dehradun, Uttarakhand– What is the difference?

Which properties could be transferred through a Gift Deed in Dehradun, Uttarakhand?

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 Dehradun, Uttarakhand?

As provided above, registration of the immovable property in Dehradun, Uttarakhand 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 Dehradun, Uttarakhand – 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 Dehradun, Uttarakhand – 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 Dehradun, Uttarakhand – 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 Dehradun, Uttarakhand?

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 Dehradun, Uttarakhand

• 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 Dehradun, Uttarakhand?

Gifts of immovable property in Dehradun, Uttarakhand 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 Dehradun, Uttarakhand?

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 Dehradun, Uttarakhand.

ii. Revocation by rescission as a contract in Dehradun, Uttarakhand.

i. Revocation by mutual agreement in Dehradun, Uttarakhand

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 Dehradun, Uttarakhand

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 Dehradun, Uttarakhand

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.