What is Gift deed?

Under sections 122 and 123 of the Transfer of Property Act, 1882, a gift of immovable property is made by a registered document signed by the donor and attested by at least two witnesses. The person receiving it must accept the gift during the donor’s lifetime.

Once registered and accepted, a gift generally cannot be taken back, except in narrow cases the deed itself provides for or where it was obtained by fraud or undue influence. Many states charge a much lower stamp duty on gifts to close family members than on sales.

Muslim personal law allows an oral gift (hiba) with delivery of possession, though a written, registered hibanama is safer in practice. For income tax, gifts from specified relatives are not taxed in the receiver’s hands; talk to a CA about anything outside that.

Foreign-exchange rules also apply: an NRI or OCI can receive most property as a gift from a relative, but not agricultural land, a plantation or a farmhouse.

Why it matters if you live abroad

A gift deed moves property within the family during your lifetime — but it is final, so compare it with a will or relinquishment deed and talk to a local property lawyer first.