Understand the legal and financial implications before gifting property

A registered gift deed transfers property ownership permanently and cannot be revoked unilaterally, unless specifically stated-donors and donees must plan with caution

The Supreme Court recently ruled in the Chelluboyina Nagaraju vs. Molleti Ramudu case that a valid gift deed once executed, registered, and accepted by the donee cannot be revoked unilaterally by the donor, unless a specific right of revocation was included in it. The case highlights the need for the donor and the recipient to make and receive gifts with caution. 

 

Understanding the basics

 

A gift is a voluntary, non-monetary transfer of ownership of existing movable or immovable property. “A gift deed is the formal legal instrument that records and gives effect to such a transfer,” says Soumya Banerjee, partner,