A Gift Deed allows a person to voluntarily transfer ownership of property to another person without any exchange of money. It must be executed as per the Transfer of Property Act, 1882.

Key Features of a Gift Deed:

1. No Consideration Required:

   • A gift must be voluntary and without any monetary exchange.

2. Legally Binding:

   • Must be registered under Section 17 of the Registration Act, 1908.

   • Must be signed by donor and attested by two witnesses.

3. Stamp Duty:

   • Varies by state; often discounted for gifts among blood relatives.

4. Irrevocability:

   • Once executed and registered, a gift deed cannot be revoked unless specific conditions are met.

Tax Implication:

• Gifts from relatives are exempt under the Income Tax Act.

• If from a non-relative and value exceeds ?50,000, it is taxable as income.