A Gift Deed is a legal document that states how much you received, from whom and when. Any person who is competent to contract can gift his property. The person transferring the property is called the donor and the person accepting the gift is the Donee. A minor cannot be a donor but can be a Donee. If the property is gifted to a minor, on behalf of a minor, a natural guardian can accept a gift containing a condition that the person nominated in the gift deed will act as a manager of the gifted property. The person making the gift and the one receiving must both sign the gift deed.

Valid Gift of Immovable Property

A gift of immovable property, which is not registered, is bad in law and cannot pass any title to the Donee. A valid gift of property can be made only by a registered instrument. According to section 123 of The Transfer of Property Act, it is invalid if a gift of a property is not registered. Documents should be stamped and registered as required, and attested by two witnesses. There are some conditions to be met to make a gift of property valid as specified by the Transfer of Property Act. Following are the conditions to be met to make a gift of property valid.

1. A transfer of property must be voluntary and made gratuitously.
2. It must satisfactorily appear that the donor knew what he was doing and understood the contents of the instrument and its effect.
3. Documents should be stamped and registered as required, and attested by two witnesses.
4. A valid gift of property can be made only by a registered instrument.
5. The Person to whom the property is being transferred (Donee) must accept the property during the lifetime of the donor. If the Donee dies before accepting the gift, the gift becomes void.
6. A minor cannot be a donor but can be a Donee. If the property is gifted to a minor, on behalf of a minor, a natural guardian can accept a gift.
7. If the gift is onerous, the obligation cannot be enforced against him while he is a minor. But later, he must either accept the burden or return the gift.
8. The gift of property must be without any consideration, absolute and unconditional except when made for a specific purpose. If there is any consideration in any shape, there is no gift.
9. Any person who is competent to contract can gift his property. Every person is competent to contract who is of the age of majority according to the law to which he is subject, and who is sound mind and is not disqualified from contracting by any law to which he is subject.
10. The person offering the gift and the one receiving must both sign the gift deed.

Gift deed procedure

There is no specific procedure to receive a gift. But do accept the gift in writing. You can do this via a gift deed. According to section 123 of The Transfer of Property Act, it is invalid if a gift of immovable property is not registered. Immovable property is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings.

Gift deed of immovable property compulsorily registered and the transfer must be effected by a registered instrument signed by or on behalf of the donor, and attested by at least two witnesses. A Gift Deed may be executed to the Blood Relations and Third Parties. However, the Person to whom the property is being transferred (Donee) must accept the property during the lifetime of the donor. If the Donee dies before accepting the gift, the gift becomes void.

Gift deed Documents

Following are the list of documents (enclosures) required to be produced at the time of presentation of the document before the jurisdictional Sub-Registrar.

• An Identical copy of the Gift-deed containing name and details of Donor and Donee, property Details and property value in the prescribed format of Gift Deed.
• Statement of particulars of property and its market value.
• Parent Document (prior to title deeds)
• Title Deeds to show how the Donor gets the property.
• Encumbrance Certificate of the property
• Affidavit which state that Registration of this document does not violate the notification issued under Section 22A of the Registration Act, 1908.
• Extract of assessment register of the property.
• If the property is an agricultural land, No objection certificate from Tahasildar.

A gift is the transfer of property by one person to another made voluntarily and without consideration. In order to constitute a valid gift, a basic requirement is acceptance. If a document of gift, after its execution or registration in favor of the donee, is handed over to him by the donor, it amounts to a valid acceptance of the gift. The gift must be an existing property. It cannot be a future property.

Section 126 of the Transfer of Property Act provides that a gift may be revoked if some conditions are met. The donor and donee must have agreed that the gift will be suspended or revoked on the happening of a specified event. A gift which was not based on fraud, undue influence, misrepresentation or an onerous one, cannot be cancelled unilaterally. Such a gift deed can be cancelled only by resorting to legal remedy in a court of law.

Link for gift deed format. - 

https://docs.google.com/viewer?a=v&q=cache:Np6cor4feh4J:www.aadisol.in/aca/sa/forms/858.doc+immovable+property+gift+deed&hl=en&gl=in&pid=bl&srcid=ADGEESjTTY2dIfazgMslY8We-tCa7yX1g8RKG-pbZ0LyGxg-P4SL5FQ3ziXI-vb7KMNiZ5UGY4Iq--KwmdR7YAS_GEAgBURAQJUI_K7mjNvYV4LpW6gWqEmaYTwsfBsZD7vuw70nVw9a&sig=AHIEtbTD7v28lv5TpbcdxY6SrB8pShunJw