Take your family into confidence before making a gift deed

—Manish Aidasani

You have not specified whether the said gift was made in cash, or in the form of movable property of the said value. Generally, it is not mandatory to execute a formal gift deed for gift of movable property. Your query may reveal that the gift is actually already made, but just in case, here are some ideas for “new” gifts.

In a typical gift deed, you should mention the following: The gift amount to be transferred is out of natural love and affection; PAN details of the recipients (ie your parents); If you wish, you may also provide a reason for the said gift (ie general welfare, medical expenses, etc.) and proof of acceptance of the gift by the donors (ie your parents) by way of counter-signature.

We are a Hindu family of four – my parents, sister and me. Both my mother and father are senior citizens. I am little daughter. Me and my sister are both married. My father has a commercial property, the ownership of which we would like to transfer to our name with the consent of our sister. What’s the easiest way to go about it?

—Name withheld on request

We believe that the business property was acquired by your father himself in his personal name; And let’s also assume that there was no load on it.

To transfer the property during your father’s lifetime, a simple gift deed can be executed by your father in your favor only. The gift deed must be registered and stamp duty must also be paid on transfer.

We would also recommend that you obtain a No Objection Certificate from your mother and your sister (in respect of the gift deed) to ensure that all members of the family conform to the proposal. This would be the simplest and cleanest method, and would allow you to have a good marketable title on the property in case of a future sale.

Rishabh Shroff is partner, Cyril Amarchand Mangaldas.