Deed-difference Between Transfer And Gift

Only after it has been entered into the public record is a deed regarded as a legally binding instrument in a court of law. A local government officer who is in charge of document maintenance typically handles this role. For the deed to be recognised in a court of law, it must be signed and notarized. In several Indian states, the deed must be witnessed by 2 individuals. A deed is regarded as an imperfect deed if it is not written down, notarized, or filed in the public record. The transfer and the document are legitimate, but the supporting documentation must be kept on file in order to avoid any future legal disputes. It is a legal document that gives an individual ownership rights, but it can be subject to restrictions on how the title may be transferred. The deed is not a title. A deed is a means for transferring a title.

TRANSFER DEED

It is regarded as the transfer of ownership in lieu of love and affection in the family of owner. It is to be understood that this kind of transfer is made in blood relation of the owner of the property. When the property that is to be transferred is an immoveable property of the value of Rs 100/- or more, or in the case of a reversion the deed must be made with a registered instrument.

STAMP DUTY AND REGISTRATION FEE
In a special case the state of Punjab has exempted any registration fee, stamp duty and registration for a registration in family transfer that is made in blood relation.

REVOCATION OF A TRANSFER DEED
A registered document signed by or on behalf of the owner and attested by at least two witnesses must be used in order to make a valid transfer of immovable property. A transfer of movable property must be registered in order to pass any title to the beneficiary, according to the Transfer of Property Act.
In a transfer of property, both parties may agree that on the happening of any specified event which does not depend on the will of the donor, a transfer deed shall be suspended or revoked; but in a transfer deed where the parties agree, it shall be revocable wholly or in part, at the mere will of the donor, and void wholly or in part, as the case may be.

GIFT DEED

Gift is a regarded as a transfer of ownership in lieu of love and affection. When the property that is to be transferred is an immoveable property of the value of Rs 100/- or more, or in the case of a reversion the deed must be made with a registered instrument.

STAMP DUTY AND REGISTRATION FEE

The stamp duty for the purpose of registering a gift deed varies from state to state. In Punjab the stamp duty of collector rate is 6% for both Urban and Rural property. The registration Fee for the same is 2.25% of Collector rate for both Urban and Rural property.

REVOCATION OF A GIFT DEED

The donor and donee may agree that on the happening of any specified event which does not depend on the will of the donor a gift shall be suspended or revoked; but a gift which the parties agree shall be revocable wholly or in part, at the mere will of the donor, is void wholly or in part, as the case may be.
The revocation of a Gift is governed by section 126 of the Transfer of Property Act,1882

This section provides with certain circumstances when an agreement between donor and donee can be revoked, it can be revoked by way of a contract which depends upon the happening of a particular specific event. It is to be understood that Revocation can only take place if such an agreement is already made with the consent of both the parties and not merely on the wishes of the donor. And therefore a Gift deed revoked, wholly or partly, only on the basis of the Will of the Donor will be void.
A Gift deed can also be revoked in any manner in which a normal contract can be revoked except for the requirement of want of consideration as in Gift consideration is not required, merely the presence of love and affection is sufficient. For instance a donor may revoke the Gift deed if it is devoid of free consent as required by section 19 of the Indian Contract Act, 1872. It is to be noted that a Gift deed cannot be revoked on any other ground.

UNDERSTANDING THE DIFFERENCE BETWEEN TRANSFER AND GIFT DEED

The main difference between the two is that a Transfer deed is a transfer of ownership in the blood relation of owner, whereas in Gift deed a transfer of ownership can be made even to someone who is not in blood relation with the owner of the property.
In case of transferring a property by way of Transfer deed in blood relation the state of Punjab has exempted any Registration Fee or stamp duty and registration fee for a registration in family transfer deeds that is made in blood relation. Whereas in case of transferring properties by way of a Gift deed the stamp duty and registration varies from state to state. In Punjab the stamp duty and registration fee are 6% and 2.25% of Collector rate for both Urban and Rural property.