A gift is a transfer of property without any consideration. The complete absence of monetary consideration is an important prerequisite. Where there is any equivalent of benefits, measured in terms of money, the transaction ceases to be a gift.
A gift refers to the transfer of certain existing moveable or immovable property by one person to another. The transfer should be made voluntarily and without consideration. The person transferring the property is called the donor. The person to whom the property is transferred is referred to as the donee. The donee must accept the property during the lifetime of the donor and while he is still capable of giving it. In case the donee dies before acceptance, the gift is void. The gift can be affected through a gift deed.
Any person who is competent to contract can make a gift of his property. A minor, being incompetent to contract, is incompetent to make a gift. A gift by a minor would be void. However, a minor can accept gifts. A natural guardian can accept a gift on behalf of the minor, containing a condition that the person nominated in the gift deed should act as a manager of the gifted property. Such acceptance would amount to recognition by the natural guardian of the nominated person as the manager or the agent of the minor, for the purpose of the gifted property.
The donee is the person who accepts the gift. A minor may be a donee. But if the gift is onerous, the obligation cannot be enforced against him while he is a minor. But when he becomes an adult he must either accept the burden or return the gift.
Soundness of mind and age are important qualifications required for making a gift. A gift to be valid must be made by a person with his free consent and not under compulsion. The donor must not be insane. However, a mere weakness of the intellect would not be sufficient to invalidate a gift if the donor could apprehend the transaction.
The transfer of property must be voluntary and made gratuitously. It must satisfactorily appear that the donor knew what he was doing and understood the contents of the instrument and its effect, and also that undue influence or pressure was not exercised upon clear intention to make a gift.
A gift of immovable property can only be made by a registered instrument. A gift of immovable property, which is not registered, is bad in law and cannot pass any title to the donee. Documents should be stamped with the appropriate non-judicial stamp, be registered as required and attested by two witnesses. Mere delivery of possession without a written instrument cannot confer any title.
Important points to note in relation to registration of Gift Deed in Delhi are :
1. Stamp duty is payable @ 4% if the donor is a woman and @ 6% if the donor is a man.
2. Registration fee is 1% of the total value of Consideration and Rs. 100/- for pasting charges.
3. Both Donor and Donee have to be present alongwith identification documents i.e., PAN Card, Election Card, Passport, Driving License etc. at the time of presentation. However, PAN Card is preferred.
4. Two witnesses alongwith identification documents need to be present during the Presentation before the Sub-Registrar for the Registration of Gift Deed.
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