Draft Gift deed for giving Rs 3 lakh as gift via bank by parent (Mr X) to his son Mr Y.
GIFT DEED
THIS GIFT DEED is made and executed on this 20th day of April, 2025
BETWEEN:
MR. X, son of [Father’s Full Name], aged about [Mr. X’s Age] years, residing at [Mr. X’s Full Address], PAN [Mr. X’s PAN Number] (hereinafter referred to as the “DONOR”, which expression shall unless repugnant to the context or meaning thereof, include his heirs, executors, administrators and legal representatives) of the ONE PART;
AND:
MR. Y, son of MR. X, aged about [Mr. Y’s Age] years, residing at [Mr. Y’s Full Address], PAN [Mr. Y’s PAN Number] (hereinafter referred to as the “DONEE”, which expression shall unless repugnant to the context or meaning thereof, include his heirs, executors, administrators and legal representatives) of the OTHER PART.
WHEREAS the Donor is the natural father of the Donee and has natural love and affection for him.
WHEREAS the Donor is desirous of making a gift of a sum of Rupees Three Lakhs (₹ 3,00,000/-) to the Donee out of his own free will and without any consideration in return.
WHEREAS the Donee is the son of the Donor and is the natural object of the Donor’s love and affection and has agreed to accept the said gift.
NOW, THIS DEED WITNESSETH AS FOLLOWS:
GIFT: The Donor, out of his own free will and without any monetary consideration, hereby gifts and transfers to the Donee a sum of Rupees Three Lakhs (₹ 3,00,000/-) (hereinafter referred to as the “Gift Amount”).
MODE OF TRANSFER: The said Gift Amount shall be transferred by the Donor to the Donee through banking channels as follows:
- Bank Name of Donor: [Donor’s Bank Name]
- Account Number of Donor: [Donor’s Account Number]
- Bank Name of Donee: [Donee’s Bank Name]
- Account Number of Donee: [Donee’s Account Number]
- IFSC Code of Donee’s Bank: [Donee’s Bank IFSC Code]
The Donor undertakes to initiate the transfer of the Gift Amount to the Donee’s bank account on or before [Date of Transfer].
ACCEPTANCE BY DONEE: The Donee hereby accepts the aforesaid gift of Rupees Three Lakhs (₹ 3,00,000/-) from the Donor.
NO CONSIDERATION: It is hereby explicitly stated and agreed upon that this gift is made purely out of natural love and affection of the Donor for the Donee, and there is no consideration, monetary or otherwise, involved in this transfer.
DONEE’S ABSOLUTE RIGHT: The Donee shall have absolute right, title, and interest in the Gift Amount and shall be entitled to utilize the same in any manner he deems fit, without any interference, claim, or demand from the Donor or any other person claiming through or under him.
INCOME TAX PROVISIONS: The Donor and the Donee hereby declare that this gift is being made between a parent and a son, who are relatives as defined under the Income Tax Act, 1961. Therefore, the Gift Amount is not chargeable to income tax in the hands of the Donee as per the provisions of Section 56(2)(x) of the Income Tax Act, 1961.
IN WITNESS WHEREOF, the parties hereto have executed this Gift Deed on the day, month, and year first above written.
SIGNED AND DELIVERED BY THE WITHIN NAMED DONOR:
MR. X
(Signature of Donor)
SIGNED AND ACCEPTED BY THE WITHIN NAMED DONEE:
MR. Y
(Signature of Donee)
WITNESSES:
Name: [Witness 1 Full Name] Address: [Witness 1 Full Address] (Signature of Witness 1)
Name: [Witness 2 Full Name] Address: [Witness 2 Full Address] (Signature of Witness 2)
Note:
- This is a sample Gift Deed for a monetary gift between a parent and a son.
- It is important to ensure that the PAN numbers of both the Donor and the Donee are correctly mentioned.
- While a Gift Deed for a monetary gift does not require mandatory registration, it is advisable to have it notarized for evidentiary purposes.
- This draft is prepared based on the understanding that the relationship between the Donor and Donee falls within the definition of “relative” under the Income Tax Act, 1961, making the gift exempt from tax in the hands of the Donee.
- It is recommended to consult with a legal professional for specific advice based on your individual circumstances and to ensure compliance with all applicable laws and regulations. This draft should not be considered a substitute for professional legal advice.
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A Gift Deed typically includes the following sections and information:
1. Title of the Deed: Gift Deed
2. Details of the Donor (Giver):
- Full Name
- Address
- Age
- Occupation
- Relationship with the Donee
3. Details of the Donee (Receiver):
- Full Name
- Address
- Age
- Occupation
- Relationship with the Donor
4. Consideration Clause:
- A clear statement that the transfer is made out of natural love and affection, without any monetary consideration.
5. Description of the Property:
- A detailed description of the property being gifted, including:
- Type of property (e.g., land, house, flat, shares, cash)
- For immovable property: Location, address, survey number, boundaries, area, and any distinguishing features.
- For movable property: Specific details like serial numbers, quantity, etc.
6. Statement of Voluntary Transfer:
- A declaration by the Donor that the gift is being made voluntarily and without any coercion, undue influence, fraud, or misrepresentation.
7. Donor’s Ownership and Rights:
- A statement affirming the Donor’s clear and absolute ownership of the property and their right to transfer it.
8. Intention to Gift:
- A clear expression of the Donor’s intention to gift the property to the Donee.
9. Acceptance by the Donee:
- A clause stating that the Donee has accepted the gift during the lifetime of the Donor. This is crucial for the validity of the deed.
10. Delivery of Possession:
* A statement about the transfer of physical or symbolic possession of the gifted property to the Donee.
11. Rights of the Donee:
* A mention of the Donee’s absolute rights over the property, including the right to use, sell, lease, mortgage, etc.
12. No Encumbrances:
* A declaration by the Donor that the property is free from any encumbrances, charges, liens, mortgages, or other liabilities (if applicable).
13. Indemnity Clause (Optional):
* A clause where the Donor agrees to indemnify the Donee against any future claims or disputes regarding the gifted property.
14. Revocation Clause (Generally Not Included for Simple Gifts):
* In most straightforward gift deeds, a revocation clause is not included as gifts once made and accepted are typically irrevocable (except under specific legal circumstances). If included, it should clearly state the conditions under which the gift can be revoked.
15. Witness Clause:
* Details of at least two witnesses who were present during the signing of the deed, including their names, addresses, and signatures.
16. Signatures of the Donor and Donee:
* Signatures of both the Donor and the Donee.
17. Date and Place of Execution:
* The date and place where the Gift Deed is signed.
18. Schedule of Property (Attached as an Annexure):
* A more detailed description of the property, especially for immovable property, which can be attached as a separate schedule (e.g., Schedule ‘A’).
Important Considerations:
- Stamp Duty: Gift deeds for immovable property are subject to stamp duty, which varies from state to state in India. The applicable stamp duty must be paid for the deed to be legally valid and registered.
- Registration: For immovable property, the Gift Deed must be compulsorily registered at the office of the Sub-Registrar under the Indian Registration Act, 1908.
- Witnesses: The signatures of at least two witnesses are required for the registration of a Gift Deed for immovable property.
- Legal Advice: It is highly recommended to consult with a lawyer to draft a Gift Deed to ensure it complies with all legal requirements and accurately reflects the intentions of the parties involved.
Please note that this is a general format and the specific clauses and details may vary depending on the type of gift, the relationship between the parties, and the applicable state laws.