Take your family into confidence before you execute gift deed

—Manish Aidasani

You have not specified whether the said gift was made in cash, or as moveable assets of the said value. Typically, for a gift of movable property, it is not mandatory to execute a formal gift deed. Your query suggests that the gift is actually already made, but just in case, here are a few thoughts on a “new” gift being made.

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 donees (i.e. your parents);  if you prefer, you may also provide a reason for the said gift (i.e. general welfare, medical expenses, etc.) and proof of acceptance of the gift by the donees (i.e. your parents) by way of counter-signatures. 

We are a Hindu family of four—my parents, sister and I. My mother and father are both senior citizens. I am the younger daughter. Both my sister and I are married. My father owns a commercial property, whose ownership we would like to transfer in my name, with the consent of my sister. What is the easiest way to go about it? 

—Name withheld on request

We assume that the commercial property was self-acquired by your father in his individual name; and also assume that it had no encumbrances over it. 

To transfer the property during your father’s lifetime, a simple gift deed can be executed by your father solely in your favour. The gift deed must be registered and the transfer would also attract payment of stamp duty. 

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 are in alignment with the proposal. This would be the simplest and cleanest approach, and would allow you to have good marketable title over the property in case of a future sale.

Rishabh Shroff is partner, Cyril Amarchand Mangaldas.