Nilesh Shah Writes:
Cell: 92246-59941
E mail: nilesh63@vsnl.
Essential ingredients of a gift.
Chapter VII of the Transfer of Property Act,1882 deals with Gifts of
movable & immovable properties. Section 122 defines 'gift' as under:
"Gift is a transfer of certain existing movable or immovable
property made voluntarily & without consideration, by one person,
called the donor, to another, called the donee, and accepted by or
on behalf of the donee.
Acceptance when to be made.
Such acceptance must be made during the lifetime of the donor &
while he is still capable of giving. If the donee dies before
acceptance, the gift is void."
Section 123 of the Transfer of Property Act deals with the procedure
relating to transfer of the property gifted. This provision is as
under:
Section 123. For the purpose of making a gift of immovable property,
the transfer must be effected by a registered instrument signed by
or on behalf of the donor, and attested by atleast two witnesses.
For the purpose of making a gift of movable property, the transfer
may be effected either by a registered instrument signed as
aforesaid or by delivery. Such delivery may be made in the same way
as goods sold may be delivered.
In view of the above definitions, following are the essential
elements of gift:
Donor's intention to make a gift;
Gift should be voluntary & without consideration, by the donor;
Delivery of actual or constructive possession;
Acceptance of the gift by the donee or on his behalf.
In addition to the above, gift of immovable property has to be
through a registered document, & transfer of immovable property is
to be effected by a registered instrument signed by or on behalf of
the donor & attested by at least two witnessese, whereas in the case
of movable property such gift should be delivered either by
registered instrument or by delivery.
More views please.
Sincerely,
Nilesh Shah
CAclubindia
