Registration of Gift Deed

Here’s how the registration of a gift deed generally works:

1. Drafting the Gift Deed: The donor, usually the person giving the property as a gift, drafts the gift deed. The deed should contain details about the property, the names and details of the donor and the donee, the nature of the gift, and any conditions or terms associated with the gift.
2. Stamp Duty and Valuation: Stamp duty is a tax levied on the gift deed based on the value of the property being gifted. The donee is responsible for paying the stamp duty. In some cases, a property valuation might be required to determine the market value of the property.
3. Payment of Stamp Duty and Registration Fees: The donee pays the stamp duty and the registration fees to the government. The stamp duty amount varies based on the property value and the local regulations.
4. Execution of Gift Deed: Both the donor and the donee sign the gift deed in the presence of two witnesses. The deed is executed on non-judicial stamp paper of the appropriate value.
5. Verification of Documents: The gift deed is verified by the sub-registrar’s office to ensure that the parties’ identities are confirmed and the document is properly executed.
6. Registration: The gift deed is presented for registration at the local sub-registrar’s office. The sub-registrar reviews the document, checks the payment of stamp duty, and registers the gift deed by affixing an official seal and stamp.
7. Recording and Indexing: The registered gift deed is assigned a unique registration number, and its details are recorded in the official records maintained by the government. This establishes the legal transfer of ownership from the donor to the donee.
8. Possession and Ownership Transfer: After registration, the donee gains legal ownership of the property and is entitled to possession and other rights associated with property ownership.

It’s important to note that gift deeds are subject to specific legal and tax implications, which can vary based on local laws and regulations. Both the donor and the done should seek legal advice before entering into a gift deed arrangement to understand the legal consequences and to ensure that the process is conducted correctly and transparently.